GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Career College Holding Co Inc (OTCPK:CCHZ) » Definitions » ROC %

CCHZ (Career College Holding Co) ROC % : -406.38% (As of Jan. 2001)


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

What is Career College Holding Co 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 %. Career College Holding Co's annualized return on capital (ROC %) for the quarter that ended in Jan. 2001 was -406.38%.

As of today (2024-09-25), Career College Holding Co's WACC % is 0.00%. Career College Holding Co's ROC % is 0.00% (calculated using TTM income statement data). Career College Holding Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Career College Holding Co ROC % Historical Data

The historical data trend for Career College Holding Co'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.

Career College Holding Co ROC % Chart

Career College Holding Co Annual Data
Trend Jul99
ROC %
-121.83

Career College Holding Co Quarterly Data
Jul99 Oct99 Jan00 Apr00 Jul00 Oct00 Jan01
ROC % Get a 7-Day Free Trial -208.20 -255.34 -301.50 -265.94 -406.38

Career College Holding Co ROC % Calculation

Career College Holding Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2099 is calculated as:

ROC % (A: Jul. 2099 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: . 20 ) + Invested Capital (A: Jul. 2099 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Invested Capital(A: . 20 )
=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))
= - - ( - max(0, - +))
=

Invested Capital(A: Jul. 2099 )
=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))
= - - ( - max(0, - +))
=

Career College Holding Co's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2001 is calculated as:

ROC % (Q: Jan. 2001 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2000 ) + Invested Capital (Q: Jan. 2001 ))/ count )
=-32.604 * ( 1 - 0% )/( (14.608 + 1.438)/ 2 )
=-32.604/8.023
=-406.38 %

where

Invested Capital(Q: Oct. 2000 )
=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))
=16.512 - 1.569 - ( 0.335 - max(0, 1.693 - 2.12+0.335))
=14.608

Invested Capital(Q: Jan. 2001 )
=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))
=4.447 - 2.822 - ( 0.187 - max(0, 2.879 - 3.279+0.187))
=1.438

Note: The Operating Income data used here is four times the quarterly (Jan. 2001) data.

* 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.

Career College Holding Co  (OTCPK:CCHZ) 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, Career College Holding Co's WACC % is 0.00%. Career College Holding Co's ROC % is 0.00% (calculated using TTM income statement data). Career College Holding Co 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.

Career College Holding Co ROC % Related Terms

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

Career College Holding Co Headlines

No Headlines