BGEM (Blue Gem Enterprise) ROC %: -273.09% (As of Aug. 2010)


What is Blue Gem Enterprise ROC %?

Blue Gem Enterprise BGEM -98.75% ROC % is -273.09% as of Aug. 2010.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Blue Gem Enterprise's annualized return on capital (ROC %) for the quarter that ended in Aug. 2010 was -273.09%.

As of today (2026-06-26), Blue Gem Enterprise's WACC % is 0.00%. Blue Gem Enterprise's ROC % is 0.00% (calculated using TTM income statement data). Blue Gem Enterprise earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Blue Gem Enterprise  (OTCPK:BGEM) 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, Blue Gem Enterprise's WACC % is 0.00%. Blue Gem Enterprise's ROC % is 0.00% (calculated using TTM income statement data). Blue Gem Enterprise 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.

Blue Gem Enterprise ROC % Related Terms

Blue Gem Enterprise ROC % Historical Data

* Premium members only.

The historical data trend for Blue Gem Enterprise'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.

Blue Gem Enterprise ROC % Chart

Blue Gem Enterprise Annual Data
Trend May08 May09 May10
ROC %
0.00 0.00 -127.74

Blue Gem Enterprise Quarterly Data
Aug07 Feb08 May08 Aug08 Nov08 Feb09 May09 Aug09 Nov09 Feb10 May10 Aug10
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 256.93 -273.09

Blue Gem Enterprise ROC % Calculation

Blue Gem Enterprise's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2010 is calculated as:

ROC % (A: May. 2010 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: May. 2009 ) + Invested Capital (A: May. 2010 ))/ count )
=-0.175 * ( 1 - % )/( (0 + 0.137)/ 1 )
=-0.175/0.137
=-127.74 %

where

Invested Capital(A: May. 2009 )
=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))
=0.008 - 0 - ( 0.008 - max(0, 0 - 0.008+0.008))
=0

Invested Capital(A: May. 2010 )
=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))
=0.261 - 0.124 - ( 0 - max(0, 0.159 - 0.261+0))
=0.137

Blue Gem Enterprise's annualized Return on Capital (ROC %) for the quarter that ended in Aug. 2010 is calculated as:

ROC % (Q: Aug. 2010 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: May. 2010 ) + Invested Capital (Q: Aug. 2010 ))/ count )
=-1.248 * ( 1 - % )/( (0.137 + 0.777)/ 2 )
=-1.248/0.457
=-273.09 %

where

Invested Capital(Q: May. 2010 )
=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))
=0.261 - 0.124 - ( 0 - max(0, 0.159 - 0.261+0))
=0.137

Invested Capital(Q: Aug. 2010 )
=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))
=1.122 - 0.336 - ( 0.009 - max(0, 0.426 - 1.114+0.009))
=0.777

Note: The Operating Income data used here is four times the quarterly (Aug. 2010) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -273.09% mean?
Blue Gem Enterprise (BGEM) has a ROC % of -273.09% as of Aug. 2010. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Blue Gem Enterprise and its competitors.
Is Blue Gem Enterprise's ROC % too high?
Blue Gem Enterprise's current ROC % is -273.09%.
How does Blue Gem Enterprise's ROC % compare to BEVS and MOJO?
Blue Gem Enterprise's ROC % of -273.09% can be compared against companies in the Beverages - Non-Alcoholic industry. The industry median ROC % is 8.72. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Beverages - Non-Alcoholic company?
The median ROC % among Beverages - Non-Alcoholic companies is 8.72, based on 114 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Blue Gem Enterprise and its competitors. For the Beverages - Non-Alcoholic industry, the median ROC % is 8.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Blue Gem Enterprise's current ROC % is -273.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Blue Gem Enterprise stock overvalued right now?
Blue Gem Enterprise (BGEM) has a current ROC % of -273.09%. The current ROC % is -273.09%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Blue Gem Enterprise (BGEM), the current ROC % is -273.09% as of Aug. 2010. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Blue Gem Enterprise Business Description

Address 12805 N. W. 42 Avenue, Opa-locka, FL, USA, 33054
Blue Gem Enterprise focuses on operating as a full-service direct store beverage distribution company. The company expects to manage and distribute select allied brands with beverage manufacturers. It is competing in all areas of the non-alcoholic beverage industry including; ice teas, juices, waters, shots, carbonated soft drinks, and more.