Axion Power International (Axion Power International) ROC % : -64.98% (As of Dec. 2016)

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What is Axion Power International ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Axion Power International's annualized return on capital (ROC %) for the quarter that ended in Dec. 2016 was -64.98%.

As of today (2024-06-10), Axion Power International's WACC % is 0.00%. Axion Power International's ROC % is 0.00% (calculated using TTM income statement data). Axion Power International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Axion Power International ROC % Historical Data

The historical data trend for Axion Power International's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Axion Power International ROC % Chart

Axion Power International Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROC %

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-75.96

-67.44

-106.17

-87.39

-52.16

Axion Power International Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
ROC %	Get a 7-Day Free Trial															-73.76	-49.94	-45.14	-46.69	-64.98

Axion Power International ROC % Calculation

Axion Power International's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2016 is calculated as:

	ROC % (A: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2015 )	+	Invested Capital (A: Dec. 2016 ))	/ count )
=	-4.779 * ( 1 - 0% )	/	( (10.177	+	8.146)	/ 2 )
=	-4.779	/	9.1615
=	-52.16 %

where

	Invested Capital		(A: Dec. 2015 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	10.599	-	0.361	-	( 1.007	-	max(0, 8.767	-	8.828	+	1.007	))
=	10.177

	Invested Capital		(A: Dec. 2016 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	0.578	-	0.299	-	( 0.2	-	max(0, 8.143	-	0.276	+	0.2	))
=	8.146

Axion Power International's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2016 is calculated as:

	ROC % (Q: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2016 )	+	Invested Capital (Q: Dec. 2016 ))	/ count )
=	-4.716 * ( 1 - 0% )	/	( (6.37	+	8.146)	/ 2 )
=	-4.716	/	7.258
=	-64.98 %

where

	Invested Capital		(Q: Sep. 2016 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2.909	-	0.262	-	( 0.301	-	max(0, 5.073	-	1.35	+	0.301	))
=	6.37

	Invested Capital		(Q: Dec. 2016 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	0.578	-	0.299	-	( 0.2	-	max(0, 8.143	-	0.276	+	0.2	))
=	8.146

Note: The Operating Income data used here is four times the quarterly (Dec. 2016) data.

Axion Power International (OTCPK:AXPWQ) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Axion Power International's WACC % is 0.00%. Axion Power International's ROC % is 0.00% (calculated using TTM income statement data). Axion Power International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Axion Power International ROC % Related Terms

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Axion Power International (Axion Power International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Axion Power International Inc (OTCPK:AXPWQ) » Definitions » ROC %

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Address

3601 Clover Lane, New Castle, PA, USA, 16105

Website

http://www.axionpower.com

Axion Power International Inc is an innovative energy solutions company that pioneered the development of carbon/ lead batteries. It develops, designs, manufactures and sells energy storage components and devices based on its patented PbC technology. Further, it sells batteries, energy storage systems, and engineering services as part of product offerings, and it assists battery end users to adapt batteries to applications where a wide voltage window, fast recharge and long life benefits are required. The business activities of the group are geographically functioned through the region of United States.

Executives

David Gelbaum	10 percent owner	2309 SANTIAGO DRIVE, NEWPORT BEACH CA 92660
Monica Chavez Gelbaum	10 percent owner	2309 SANTIAGO DRIVE, NEWPORT BEACH CA 92660
Quercus Trust	10 percent owner	2309 SANTIAGO DRIVE, NEWPORT BEACH CA 92660
Marxe Austin W & Greenhouse David M	10 percent owner	C/O SPECIAL SITUATIONS FUNDS, 527 MADISON AVENUE, SUITE 2600, NEW YORK NY 10022
Stanley A Hirschman	director
David Anthony	director	200 LUDLOW DRIVE, EWING NJ 08638

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