EQM Technologies & Energy (EQM Technologies & Energy) ROC % : -4.98% (As of Jun. 2014)

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What is EQM Technologies & Energy 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 %. EQM Technologies & Energy's annualized return on capital (ROC %) for the quarter that ended in Jun. 2014 was -4.98%.

As of today (2024-05-21), EQM Technologies & Energy's WACC % is 0.00%. EQM Technologies & Energy's ROC % is 0.00% (calculated using TTM income statement data). EQM Technologies & Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.

EQM Technologies & Energy ROC % Historical Data

The historical data trend for EQM Technologies & Energy'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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EQM Technologies & Energy ROC % Chart

EQM Technologies & Energy Annual Data

Trend

Dec08

Dec09

Dec11

Dec12

Dec13

ROC %

-34.92

-29.48

-19.23

0.13

-9.90

EQM Technologies & Energy Quarterly Data
	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14
ROC %	Get a 7-Day Free Trial															0.46	-41.60	29.98	-31.66	-4.98

EQM Technologies & Energy ROC % Calculation

EQM Technologies & Energy's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2013 is calculated as:

	ROC % (A: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2012 )	+	Invested Capital (A: Dec. 2013 ))	/ count )
=	-1.603 * ( 1 - -5.85% )	/	( (19.57	+	14.7)	/ 2 )
=	-1.6967755	/	17.135
=	-9.90 %

where

	Invested Capital		(A: Dec. 2012 )
=	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	))
=	31.682	-	13.842	-	( 0.042	-	max(0, 20.285	-	18.555	+	0.042	))
=	19.57

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	26.209	-	11.532	-	( 2.374	-	max(0, 17.735	-	17.712	+	2.374	))
=	14.7

EQM Technologies & Energy's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2014 is calculated as:

	ROC % (Q: Jun. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2014 )	+	Invested Capital (Q: Jun. 2014 ))	/ count )
=	-0.732 * ( 1 - 0.85% )	/	( (11.06	+	18.089)	/ 2 )
=	-0.725778	/	14.5745
=	-4.98 %

where

	Invested Capital		(Q: Mar. 2014 )
=	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	))
=	19.682	-	9.497	-	( 0.917	-	max(0, 12.284	-	11.409	+	0.917	))
=	11.06

	Invested Capital		(Q: Jun. 2014 )
=	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	))
=	23.631	-	12.986	-	( 0.741	-	max(0, 22.925	-	15.481	+	0.741	))
=	18.089

Note: The Operating Income data used here is four times the quarterly (Jun. 2014) data.

EQM Technologies & Energy (OTCPK:EQTE) 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, EQM Technologies & Energy's WACC % is 0.00%. EQM Technologies & Energy's ROC % is 0.00% (calculated using TTM income statement data). EQM Technologies & Energy 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.

EQM Technologies & Energy ROC % Related Terms

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EQM Technologies & Energy (EQM Technologies & Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » EQM Technologies & Energy Inc (OTCPK:EQTE) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1800 Carillon Boulevard, Cincinnati, OH, USA, 45240

Website

http://www.eqm.com

EQM Technologies & Energy Inc is an environmental, engineering consulting and services company. The firm through its subsidiary provides environmental consulting, engineering and compliance, and remediation and construction management services. The company serves a diverse set of markets including automotive, chemical, food and beverage, pharmaceutical, and also federal sector.

Executives

Daniel Raynor	10 percent owner
Jon Colin	director, officer: Interim CEO	1940 NW 67TH PLACE, SUITE A, GAINESVILLE FL 32653

EQM Technologies & Energy (EQM Technologies & Energy) Headlines

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