Location Based Technologies (Location Based Technologies) ROC % : -14.05% (As of May. 2015)

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What is Location Based Technologies 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 %. Location Based Technologies's annualized return on capital (ROC %) for the quarter that ended in May. 2015 was -14.05%.

As of today (2024-06-10), Location Based Technologies's WACC % is 0.00%. Location Based Technologies's ROC % is 0.00% (calculated using TTM income statement data). Location Based Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Location Based Technologies ROC % Historical Data

The historical data trend for Location Based Technologies'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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Location Based Technologies ROC % Chart

Location Based Technologies Annual Data

Trend

Aug06

Aug07

Aug08

Aug09

Aug10

Aug11

Aug12

Aug13

Aug14

ROC %

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-110.23

-85.97

-127.44

-99.98

-47.48

Location Based Technologies Quarterly Data
	Aug10	Nov10	Feb11	May11	Aug11	Nov11	Feb12	May12	Aug12	Nov12	Feb13	May13	Aug13	Nov13	Feb14	May14	Aug14	Nov14	Feb15	May15
ROC %	Get a 7-Day Free Trial															-45.64	-38.47	-33.01	-20.23	-14.05

Location Based Technologies ROC % Calculation

Location Based Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2014 is calculated as:

	ROC % (A: Aug. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2013 )	+	Invested Capital (A: Aug. 2014 ))	/ count )
=	-3.837 * ( 1 - -0.02% )	/	( (8.461	+	7.704)	/ 2 )
=	-3.8377674	/	8.0825
=	-47.48 %

where

	Invested Capital		(A: Aug. 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	))
=	3.371	-	1.699	-	( 0.681	-	max(0, 8.41	-	1.621	+	0.681	))
=	8.461

	Invested Capital		(A: Aug. 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	))
=	2.326	-	1.865	-	( 0.146	-	max(0, 8.312	-	1.069	+	0.146	))
=	7.704

Location Based Technologies's annualized Return on Capital (ROC %) for the quarter that ended in May. 2015 is calculated as:

	ROC % (Q: May. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2015 )	+	Invested Capital (Q: May. 2015 ))	/ count )
=	-1.724 * ( 1 - -0.12% )	/	( (12.417	+	12.148)	/ 2 )
=	-1.7260688	/	12.2825
=	-14.05 %

where

	Invested Capital		(Q: Feb. 2015 )
=	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	))
=	2.249	-	1.812	-	( 0.237	-	max(0, 13.085	-	1.105	+	0.237	))
=	12.417

	Invested Capital		(Q: May. 2015 )
=	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	))
=	2.107	-	1.878	-	( 0.237	-	max(0, 13.048	-	1.129	+	0.237	))
=	12.148

Note: The Operating Income data used here is four times the quarterly (May. 2015) data.

Location Based Technologies (OTCPK:LBAS) 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, Location Based Technologies's WACC % is 0.00%. Location Based Technologies's ROC % is 0.00% (calculated using TTM income statement data). Location Based Technologies 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.

Location Based Technologies ROC % Related Terms

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Location Based Technologies (Location Based Technologies) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Location Based Technologies Inc (OTCPK:LBAS) » Definitions » ROC %

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Address

7545 Irvine Center Drive, Suite 200, Irvine, CA, USA, 92618

Website

https://www.locationbasedtech.com

Location Based Technologies Inc is engaged in supplying fleet trackers, a small, affordable, fully sealed vehicle tracking system (combined GPS, wireless, and WiFi technology) designed to track and display vehicles and other mobile assets on the go. It is designed to be quickly installed and features easy-to-use user interfaces, including browser and apps. Its product offering includes PocketFinder. The company generates revenue from Device Sales and Services.

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