Strategic Asset Leasing (Strategic Asset Leasing) ROC % : -86.49% (As of Dec. 2092)

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What is Strategic Asset Leasing 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 %. Strategic Asset Leasing's annualized return on capital (ROC %) for the quarter that ended in Dec. 2092 was -86.49%.

As of today (2024-06-17), Strategic Asset Leasing's WACC % is 0.00%. Strategic Asset Leasing's ROC % is 0.00% (calculated using TTM income statement data). Strategic Asset Leasing earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Strategic Asset Leasing ROC % Historical Data

The historical data trend for Strategic Asset Leasing'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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Strategic Asset Leasing ROC % Chart

Strategic Asset Leasing Annual Data

Trend

Dec89

Dec90

Dec91

Dec92

ROC %

-19.23

-13.53

-5.26

-18.63

Strategic Asset Leasing Quarterly Data
	Mar89	Jun89	Sep89	Dec89	Mar90	Jun90	Sep90	Dec90	Mar91	Jun91	Sep91	Dec91	Mar92	Jun92	Sep92	Dec92
ROC %	Get a 7-Day Free Trial											-41.38	4.60	-	-	-86.49

Strategic Asset Leasing ROC % Calculation

Strategic Asset Leasing's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2092 is calculated as:

	ROC % (A: Dec. 2092 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2091 )	+	Invested Capital (A: Dec. 2092 ))	/ count )
=	-1.5 * ( 1 - % )	/	( (8.7	+	7.4)	/ 2 )
=	-1.5	/	8.05
=	-18.63 %

where

	Invested Capital		(A: Dec. 2091 )
=	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	))
=	8.5	-	0.5	-	( 0.1	-	max(0, 1.1	-	0.4	+	0.1	))
=	8.7

	Invested Capital		(A: Dec. 2092 )
=	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	))
=	8.2	-	0.5	-	( 0.3	-	max(0, 0.5	-	0.8	+	0.3	))
=	7.4

Strategic Asset Leasing's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2092 is calculated as:

	ROC % (Q: Dec. 2092 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2092 )	+	Invested Capital (Q: Dec. 2092 ))	/ count )
=	-6.4 * ( 1 - % )	/	( (0	+	7.4)	/ 1 )
=	-6.4	/	7.4
=	-86.49 %

where

	Invested Capital		(Q: Sep. 2092 )
=	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	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: Dec. 2092 )
=	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	))
=	8.2	-	0.5	-	( 0.3	-	max(0, 0.5	-	0.8	+	0.3	))
=	7.4

Note: The Operating Income data used here is four times the quarterly (Dec. 2092) data.

Strategic Asset Leasing (OTCPK:LEAS) 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, Strategic Asset Leasing's WACC % is 0.00%. Strategic Asset Leasing's ROC % is 0.00% (calculated using TTM income statement data). Strategic Asset Leasing 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.

Strategic Asset Leasing ROC % Related Terms

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Strategic Asset Leasing (Strategic Asset Leasing) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Strategic Asset Leasing Inc (OTCPK:LEAS) » Definitions » ROC %

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Traded in Other Exchanges

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Address

13576 Walnut Street, Suite A, Omaha, NE, USA, 68144

Website

https://www.anewmeds.com

Strategic Asset Leasing Inc is a United States-based development stage company. It is principally focused on the business activities to engage in the leasing and rental of general and miscellaneous business equipment.