1st NRG (1st NRG) ROC % : -753.62% (As of Sep. 2009)

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

What is 1st NRG 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 %. 1st NRG's annualized return on capital (ROC %) for the quarter that ended in Sep. 2009 was -753.62%.

As of today (2024-06-07), 1st NRG's WACC % is 0.00%. 1st NRG's ROC % is 0.00% (calculated using TTM income statement data). 1st NRG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

1st NRG ROC % Historical Data

The historical data trend for 1st NRG'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.

1st NRG ROC % Chart

1st NRG Annual Data

Trend

Dec99

Dec00

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

ROC %

Get a 7-Day Free Trial

-79.34

-509.38

-338.46

-157.54

-133.21

1st NRG Quarterly Data
	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09
ROC %	Get a 7-Day Free Trial															-718.90	-41.92	-75.51	-579.71	-753.62

1st NRG ROC % Calculation

1st NRG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2008 is calculated as:

	ROC % (A: Dec. 2008 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2007 )	+	Invested Capital (A: Dec. 2008 ))	/ count )
=	-1.123 * ( 1 - % )	/	( (0.614	+	1.072)	/ 2 )
=	-1.123	/	0.843
=	-133.21 %

where

	Invested Capital		(A: Dec. 2007 )
=	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	-	0.014	-	( 0	-	max(0, 0.628	-	0	+	0	))
=	0.614

	Invested Capital		(A: Dec. 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	))
=	0.017	-	0.11	-	( 0	-	max(0, 1.182	-	0.017	+	0	))
=	1.072

1st NRG's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2009 is calculated as:

	ROC % (Q: Sep. 2009 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2009 )	+	Invested Capital (Q: Sep. 2009 ))	/ count )
=	-0.52 * ( 1 - % )	/	( (0.087	+	0.051)	/ 2 )
=	-0.52	/	0.069
=	-753.62 %

where

	Invested Capital		(Q: 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	))
=	0.003	-	1.283	-	( 0	-	max(0, 1.37	-	0.003	+	0	))
=	0.087

	Invested Capital		(Q: Sep. 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	))
=	0.003	-	1.454	-	( 0	-	max(0, 1.505	-	0.003	+	0	))
=	0.051

Note: The Operating Income data used here is four times the quarterly (Sep. 2009) data.

1st NRG (OTCPK:FNRC) 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, 1st NRG's WACC % is 0.00%. 1st NRG's ROC % is 0.00% (calculated using TTM income statement data). 1st NRG 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.

1st NRG ROC % Related Terms

Thank you for viewing the detailed overview of 1st NRG's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

1st NRG (1st NRG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » 1st NRG Corp (OTCPK:FNRC) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1531 Stout Street, Suite 607, Denver, CO, USA, 80202

Website

http://1stnrg-corp.com

1st NRG Corp is an exploration and production company. The company is primarily engaged in the development of natural gas producing properties in the Powder River Basin of Wyoming. The company operates in one industry segment, the exploration, development, production, and sale of oil and natural gas. Its project portfolio comprises Clabaugh ranch, eastern Ohio - Beekmantown dolomite, and coalbed methane.

1st NRG (1st NRG) Headlines

No Headlines