Color Imaging (Color Imaging) ROC % : 14.17% (As of Jun. 2005)

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What is Color Imaging 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 %. Color Imaging's annualized return on capital (ROC %) for the quarter that ended in Jun. 2005 was 14.17%.

As of today (2024-05-25), Color Imaging's WACC % is 0.00%. Color Imaging's ROC % is 0.00% (calculated using TTM income statement data). Color Imaging earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Color Imaging ROC % Historical Data

The historical data trend for Color Imaging'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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Color Imaging ROC % Chart

Color Imaging Annual Data

Trend

Dec99

Dec00

Dec01

Dec02

Dec03

Dec04

ROC %

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-1.52

3.64

4.47

3.11

2.90

Color Imaging Quarterly Data
	Sep00	Dec00	Mar01	Jun01	Sep01	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05
ROC %	Get a 7-Day Free Trial															4.97	2.64	1.75	6.47	14.17

Color Imaging ROC % Calculation

Color Imaging's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2004 is calculated as:

	ROC % (A: Dec. 2004 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2003 )	+	Invested Capital (A: Dec. 2004 ))	/ count )
=	0.636 * ( 1 - 40.13% )	/	( (13.267	+	13.026)	/ 2 )
=	0.3807732	/	13.1465
=	2.90 %

where

	Invested Capital		(A: Dec. 2003 )
=	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	))
=	17.895	-	2.414	-	( 2.214	-	max(0, 3.527	-	9.982	+	2.214	))
=	13.267

	Invested Capital		(A: Dec. 2004 )
=	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	))
=	16.696	-	1.625	-	( 2.045	-	max(0, 2.097	-	9.512	+	2.045	))
=	13.026

Color Imaging's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2005 is calculated as:

	ROC % (Q: Jun. 2005 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2005 )	+	Invested Capital (Q: Jun. 2005 ))	/ count )
=	2.888 * ( 1 - 36.27% )	/	( (12.775	+	13.21)	/ 2 )
=	1.8405224	/	12.9925
=	14.17 %

where

	Invested Capital		(Q: Mar. 2005 )
=	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	))
=	16.84	-	2.146	-	( 1.919	-	max(0, 2.18	-	10.137	+	1.919	))
=	12.775

	Invested Capital		(Q: Jun. 2005 )
=	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	))
=	17.846	-	2.403	-	( 2.233	-	max(0, 2.492	-	11.085	+	2.233	))
=	13.21

Note: The Operating Income data used here is four times the quarterly (Jun. 2005) data.

Color Imaging (OTCPK:CIIG) 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, Color Imaging's WACC % is 0.00%. Color Imaging's ROC % is 0.00% (calculated using TTM income statement data). Color Imaging 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.

Color Imaging ROC % Related Terms

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Color Imaging (Color Imaging) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

4350 Peachtree Industrial Boulevard, Suite 100, Norcross, GA, USA, 30071

Website

http://www.colorimaging.com

Color Imaging Inc designs, develops, manufactures and markets products used in electronic photocopying and printing, including black text, specialty, full color and MICR and supplies other consumable products, including imaging drums.