Bitcoin Generation (Bitcoin Generation) ROC % : -62.34% (As of Jun. 2017)

View and export this data going back to 2005. Start your Free Trial

What is Bitcoin Generation 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 %. Bitcoin Generation's annualized return on capital (ROC %) for the quarter that ended in Jun. 2017 was -62.34%.

As of today (2024-06-23), Bitcoin Generation's WACC % is 0.00%. Bitcoin Generation's ROC % is 0.00% (calculated using TTM income statement data). Bitcoin Generation earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bitcoin Generation ROC % Historical Data

The historical data trend for Bitcoin Generation'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.

* Premium members only.

Bitcoin Generation ROC % Chart

Bitcoin Generation Annual Data

Trend

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

ROC %

Get a 7-Day Free Trial

-328.40

-296.48

-80.16

-51.06

-161.02

Bitcoin Generation Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Mar17	Jun17
ROC %	Get a 7-Day Free Trial															-203.05	-16.57	-9.41	-	-62.34

Bitcoin Generation ROC % Calculation

Bitcoin Generation's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2017 is calculated as:

	ROC % (A: Mar. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2016 )	+	Invested Capital (A: Mar. 2017 ))	/ count )
=	-0.818 * ( 1 - 0% )	/	( (0.387	+	0.629)	/ 2 )
=	-0.818	/	0.508
=	-161.02 %

where

	Invested Capital		(A: Mar. 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	))
=	0.068	-	3.05	-	( 0.002	-	max(0, 3.437	-	0.068	+	0.002	))
=	0.387

	Invested Capital		(A: Mar. 2017 )
=	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	))
=	0.78	-	0.146	-	( 0.005	-	max(0, 0.646	-	0.78	+	0.005	))
=	0.629

Bitcoin Generation's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2017 is calculated as:

	ROC % (Q: Jun. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2017 )	+	Invested Capital (Q: Jun. 2017 ))	/ count )
=	-0.36 * ( 1 - 0% )	/	( (0.629	+	0.526)	/ 2 )
=	-0.36	/	0.5775
=	-62.34 %

where

	Invested Capital		(Q: Mar. 2017 )
=	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	))
=	0.78	-	0.146	-	( 0.005	-	max(0, 0.646	-	0.78	+	0.005	))
=	0.629

	Invested Capital		(Q: Jun. 2017 )
=	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	))
=	0.777	-	0.251	-	( 0	-	max(0, 0.751	-	0.777	+	0	))
=	0.526

Note: The Operating Income data used here is four times the quarterly (Jun. 2017) data.

Bitcoin Generation (OTCPK:BTGN) 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, Bitcoin Generation's WACC % is 0.00%. Bitcoin Generation's ROC % is 0.00% (calculated using TTM income statement data). Bitcoin Generation 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.

Bitcoin Generation ROC % Related Terms

Thank you for viewing the detailed overview of Bitcoin Generation's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Bitcoin Generation (Bitcoin Generation) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Bitcoin Generation Inc (OTCPK:BTGN) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

2401 Nowata Place, Suite A, Bartlesville, OK, USA, 74006

Website

http://www.bitcoingeneration.co

Bitcoin Generation Inc is specialized in the development of Blockchain technology application, cryptocurrency mining, and cryptocurrency trading.

Bitcoin Generation (Bitcoin Generation) Headlines

No Headlines