Forum Mobile (Forum Mobile) ROC % : -146.06% (As of Jun. 2006)

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

What is Forum Mobile 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 %. Forum Mobile's annualized return on capital (ROC %) for the quarter that ended in Jun. 2006 was -146.06%.

As of today (2024-06-23), Forum Mobile's WACC % is 0.00%. Forum Mobile's ROC % is 0.00% (calculated using TTM income statement data). Forum Mobile earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Forum Mobile ROC % Historical Data

The historical data trend for Forum Mobile'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.

Forum Mobile ROC % Chart

Forum Mobile Annual Data

Trend

Dec00

Dec01

Dec02

Dec03

Dec04

Dec05

ROC %

Get a 7-Day Free Trial

-40.08

-16.28

-37.09

-36.36

-48.20

Forum Mobile Quarterly Data
	Sep01	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06
ROC %	Get a 7-Day Free Trial															2.55	-8.12	-131.03	-14.70	-146.06

Forum Mobile ROC % Calculation

Forum Mobile's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2005 is calculated as:

	ROC % (A: Dec. 2005 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2004 )	+	Invested Capital (A: Dec. 2005 ))	/ count )
=	-6.383 * ( 1 - 0% )	/	( (2.649	+	23.837)	/ 2 )
=	-6.383	/	13.243
=	-48.20 %

where

	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	))
=	0.362	-	0.269	-	( 0.162	-	max(0, 2.918	-	0.362	+	0.162	))
=	2.649

	Invested Capital		(A: Dec. 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	))
=	25.252	-	6.435	-	( 1.302	-	max(0, 15.35	-	10.33	+	1.302	))
=	23.837

Forum Mobile's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2006 is calculated as:

	ROC % (Q: Jun. 2006 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2006 )	+	Invested Capital (Q: Jun. 2006 ))	/ count )
=	-31.624 * ( 1 - 0% )	/	( (22.973	+	20.331)	/ 2 )
=	-31.624	/	21.652
=	-146.06 %

where

	Invested Capital		(Q: Mar. 2006 )
=	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	))
=	23.136	-	5.79	-	( 0.151	-	max(0, 14.227	-	8.6	+	0.151	))
=	22.973

	Invested Capital		(Q: Jun. 2006 )
=	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	))
=	13.502	-	6.974	-	( 0.007	-	max(0, 18.916	-	5.113	+	0.007	))
=	20.331

Note: The Operating Income data used here is four times the quarterly (Jun. 2006) data.

Forum Mobile (OTCPK:FRMB) 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, Forum Mobile's WACC % is 0.00%. Forum Mobile's ROC % is 0.00% (calculated using TTM income statement data). Forum Mobile 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.

Forum Mobile ROC % Related Terms

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

Forum Mobile (Forum Mobile) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Forum Mobile Inc (OTCPK:FRMB) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

26 Broadway, 21st Floor, New York, NY, USA, 10004

Website

http://www.forum-mobile.com

Forum Mobile Inc is a global Mobile Virtual Network Enabler (MVNE) based in the USA. It specializes in MVNE, Mobile Services, Telecom, and cloud services. The company is active in a variety of complimentary fields such as private banking, business development and consulting and provides hosting and trading platforms. Geographically the business activities are operated through United States.

Forum Mobile (Forum Mobile) Headlines

No Headlines