Imperial Resources (Imperial Resources) ROC % : -31.61% (As of Dec. 2012)

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What is Imperial Resources 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 %. Imperial Resources's annualized return on capital (ROC %) for the quarter that ended in Dec. 2012 was -31.61%.

As of today (2024-06-16), Imperial Resources's WACC % is 0.00%. Imperial Resources's ROC % is 0.00% (calculated using TTM income statement data). Imperial Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Imperial Resources ROC % Historical Data

The historical data trend for Imperial Resources'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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Imperial Resources ROC % Chart

Imperial Resources Annual Data

Trend

Mar09

Mar10

Mar11

Mar12

ROC %

-1.56

-34.89

-32.77

Imperial Resources Quarterly Data
	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12
ROC %	Get a 7-Day Free Trial														-21.72	-16.73	-23.14	-23.17	-31.61

Imperial Resources ROC % Calculation

Imperial Resources's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2012 is calculated as:

	ROC % (A: Mar. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2011 )	+	Invested Capital (A: Mar. 2012 ))	/ count )
=	-0.417 * ( 1 - 0% )	/	( (0.323	+	2.222)	/ 2 )
=	-0.417	/	1.2725
=	-32.77 %

where

	Invested Capital		(A: Mar. 2011 )
=	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	))
=	0.716	-	0.083	-	( 0.365	-	max(0, 0.083	-	0.393	+	0.365	))
=	0.323

	Invested Capital		(A: Mar. 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	))
=	2.235	-	0.302	-	( 0.092	-	max(0, 0.398	-	0.109	+	0.092	))
=	2.222

Imperial Resources's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2012 is calculated as:

	ROC % (Q: Dec. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2012 )	+	Invested Capital (Q: Dec. 2012 ))	/ count )
=	-0.728 * ( 1 - 0% )	/	( (2.287	+	2.319)	/ 2 )
=	-0.728	/	2.303
=	-31.61 %

where

	Invested Capital		(Q: Sep. 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	))
=	2.214	-	0.436	-	( 0.027	-	max(0, 0.536	-	0.027	+	0.027	))
=	2.287

	Invested Capital		(Q: 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	))
=	2.307	-	0.474	-	( 0.044	-	max(0, 0.568	-	0.082	+	0.044	))
=	2.319

Note: The Operating Income data used here is four times the quarterly (Dec. 2012) data.

Imperial Resources (OTCPK:IPRC) 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, Imperial Resources's WACC % is 0.00%. Imperial Resources's ROC % is 0.00% (calculated using TTM income statement data). Imperial Resources 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.

Imperial Resources ROC % Related Terms

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Imperial Resources (Imperial Resources) Business Description

Industry

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Traded in Other Exchanges

N/A

Address

106 East 6th Street, Suite 900, Austin, TX, USA, 78701

Website

http://www.imperialresourcesinc.com

Imperial Resources Inc has decided to focus its core activities on development and exploration of oil and gas assets in the United States through its wholly-owned subsidiary. It is an exploration stage company. It explores for asphalt, gold, and other precious metals.

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