Comtex News Network (Comtex News Network) ROC % : -109.41% (As of Mar. 2010)

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What is Comtex News Network 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 %. Comtex News Network's annualized return on capital (ROC %) for the quarter that ended in Mar. 2010 was -109.41%.

As of today (2024-05-11), Comtex News Network's WACC % is 0.00%. Comtex News Network's ROC % is 0.00% (calculated using TTM income statement data). Comtex News Network earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Comtex News Network ROC % Historical Data

The historical data trend for Comtex News Network'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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Comtex News Network ROC % Chart

Comtex News Network Annual Data

Trend

Jun00

Jun01

Jun02

Jun03

Jun04

Jun05

Jun06

Jun07

Jun08

Jun09

ROC %

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67.97

-83.72

68.72

200.75

13.77

Comtex News Network Quarterly Data
	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10
ROC %	Get a 7-Day Free Trial															-49.70	49.93	83.09	-77.42	-109.41

Comtex News Network ROC % Calculation

Comtex News Network's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2009 is calculated as:

	ROC % (A: Jun. 2009 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2008 )	+	Invested Capital (A: Jun. 2009 ))	/ count )
=	0.087 * ( 1 - 11.54% )	/	( (0.459	+	0.659)	/ 2 )
=	0.0769602	/	0.559
=	13.77 %

where

	Invested Capital		(A: Jun. 2008 )
=	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	))
=	2.839	-	0.992	-	( 1.521	-	max(0, 1.013	-	2.401	+	1.521	))
=	0.459

	Invested Capital		(A: Jun. 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	))
=	2.835	-	0.786	-	( 1.43	-	max(0, 0.881	-	2.271	+	1.43	))
=	0.659

Comtex News Network's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2010 is calculated as:

	ROC % (Q: Mar. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2009 )	+	Invested Capital (Q: Mar. 2010 ))	/ count )
=	-1.004 * ( 1 - -0.53% )	/	( (0.921	+	0.924)	/ 2 )
=	-1.0093212	/	0.9225
=	-109.41 %

where

	Invested Capital		(Q: Dec. 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	))
=	3.041	-	0.906	-	( 1.32	-	max(0, 1.048	-	2.262	+	1.32	))
=	0.921

	Invested Capital		(Q: Mar. 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	))
=	2.913	-	0.984	-	( 1.139	-	max(0, 1.111	-	2.116	+	1.139	))
=	0.924

Note: The Operating Income data used here is four times the quarterly (Mar. 2010) data.

Comtex News Network (OTCPK:CMTX) 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, Comtex News Network's WACC % is 0.00%. Comtex News Network's ROC % is 0.00% (calculated using TTM income statement data). Comtex News Network 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.

Comtex News Network ROC % Related Terms

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Comtex News Network (Comtex News Network) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Comtex News Network Inc (OTCPK:CMTX) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

295 Madison Avenue, 12th Floor, New York, NY, USA, 10017

Website

http://www.comtex.com

Comtex News Network Inc is a provider of economically useful electronic real-time news, content and SmarTrend(r) market products. It receives, enhances, combines and filters news and content received from national and international news bureaus, agencies and publications, and distributes more than one million total stories per day.

Executives

Chip Brian	officer: President and COO	625 N WASHINGTON STREET STE 301 ALEXANDRIA VA 22314
Tepco Corp	10 percent owner	25 CHURCH STREET THE CONTINENTAL BUILDING HAMILTON D0 HM 12
C W Gilluly	director, officer: Interim C.E.O.	625 N. WASHINGTON ST. STE 301 ALEXANDRIA VA 22314

Comtex News Network (Comtex News Network) Headlines

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