ZipRealty (FRA:FQK) ROC % : -325.21% (As of Mar. 2014)

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What is ZipRealty 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 %. ZipRealty's annualized return on capital (ROC %) for the quarter that ended in Mar. 2014 was -325.21%.

As of today (2024-05-03), ZipRealty's WACC % is 0.00%. ZipRealty's ROC % is 0.00% (calculated using TTM income statement data). ZipRealty earns returns that do not match up to its cost of capital. It will destroy value as it grows.

ZipRealty ROC % Historical Data

The historical data trend for ZipRealty'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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ZipRealty ROC % Chart

ZipRealty Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROC %

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-275.47

-454.95

-310.06

-313.36

-158.04

ZipRealty Quarterly Data
	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14
ROC %	Get a 7-Day Free Trial															-258.14	36.10	10.07	-404.15	-325.21

ZipRealty ROC % Calculation

ZipRealty'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 )
=	-3.93 * ( 1 - -1.1% )	/	( (2.476	+	2.552)	/ 2 )
=	-3.97323	/	2.514
=	-158.04 %

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	))
=	14.805	-	4.067	-	( 9.846	-	max(0, 4.067	-	12.329	+	9.846	))
=	2.476

	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	))
=	14.734	-	5.34	-	( 10.447	-	max(0, 5.34	-	12.182	+	10.447	))
=	2.552

ZipRealty's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2014 is calculated as:

	ROC % (Q: Mar. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2013 )	+	Invested Capital (Q: Mar. 2014 ))	/ count )
=	-8.348 * ( 1 - -0.43% )	/	( (2.552	+	2.604)	/ 2 )
=	-8.3838964	/	2.578
=	-325.21 %

where

	Invested Capital		(Q: 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	))
=	14.734	-	5.34	-	( 10.447	-	max(0, 5.34	-	12.182	+	10.447	))
=	2.552

	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	))
=	12.365	-	4.845	-	( 7.987	-	max(0, 4.845	-	9.761	+	7.987	))
=	2.604

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

ZipRealty (FRA:FQK) 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, ZipRealty's WACC % is 0.00%. ZipRealty's ROC % is 0.00% (calculated using TTM income statement data). ZipRealty 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.

ZipRealty ROC % Related Terms

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ZipRealty (FRA:FQK) Business Description

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GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » ZipRealty Inc (FRA:FQK) » Definitions » ROC %

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Website

http://www.ziprealty.com

ZipRealty, Inc., was incorporated under the laws of the state of California in 1999. The Company is an online, technology-enabled real estate brokerage company in the United States. It owned-and-operated real estate brokerage serves 19 metropolitan markets with over 1,500 licensed REALTORS. The Company serves an additional 15 markets through its Powered by Zip, or PBZ, business, which provides its technology platform as an enterprise cloud-based application. It operates ZipRealty.com, the often visited brokerage website with approximately 2.4 million unique monthly visitors. It also provides consumers with mobile applications that offer all of the key features of its website and optimize them for all major platforms and devices. As the direct result of offering the accurate, timely and comprehensive housing information, buyers using its services can quickly find relevant home listings that meet their search criteria and are well positioned when they are ready to interact with local REALTORS affiliated with its owned-and-operated brokerage or its PBZ network. The Company serves real estate professionals in its owned-and-operated brokerage business. Its conducts its owned-and-operated brokerage services in 19 markets nationwide, all of which were opened prior to May 2009: Austin, TX, Baltimore, MD, Boston, MA, Chicago, IL, Dallas, TX, Denver, CO, Houston, TX, Las Vegas, NV, Los Angeles, CA, Orange County, CA, Orlando, FL, Phoenix, AZ, Richmond, VA, Sacramento, CA, San Diego, CA, the San Francisco Bay area, CA, Seattle, WA, Portland, OR, and Washington, DC. Powered by Zip network serves leading local brokerages in 15 markets where the company do not otherwise conduct business: Atlanta, GA, Jacksonville, FL, Nashville, TN, the Greater Philadelphia area, PA, Raleigh-Durham, NC, Salt Lake City, UT, Tucson, AZ, Westchester/Bronx, NY, Tampa, FL, Palm Beach, FL, Long Island, NY, Brooklyn, NY, Miami, FL., Minneapolis, MN, and Virginia Beach, VA. It competes for mindshare among serious real estate consumers with companies that have developed or could develop national and local real estate websites and mobile applications. The Company is subject to federal and state regulations relating to its employment and compensation practices.

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