Legend Oil & Gas (Legend Oil & Gas) ROC % : -150.40% (As of Dec. 2016)

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What is Legend Oil & Gas 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 %. Legend Oil & Gas's annualized return on capital (ROC %) for the quarter that ended in Dec. 2016 was -150.40%.

As of today (2024-06-20), Legend Oil & Gas's WACC % is 0.00%. Legend Oil & Gas's ROC % is 0.00% (calculated using TTM income statement data). Legend Oil & Gas earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Legend Oil & Gas ROC % Historical Data

The historical data trend for Legend Oil & Gas'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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Legend Oil & Gas ROC % Chart

Legend Oil & Gas Annual Data

Trend

Dec04

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROC %

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-20.12

-18.73

-46.07

-63.93

-91.96

Legend Oil & Gas Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
ROC %	Get a 7-Day Free Trial															-18.83	-50.73	-79.28	-91.19	-150.40

Legend Oil & Gas ROC % Calculation

Legend Oil & Gas's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2016 is calculated as:

	ROC % (A: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2015 )	+	Invested Capital (A: Dec. 2016 ))	/ count )
=	-4.041 * ( 1 - 0% )	/	( (5.253	+	3.536)	/ 2 )
=	-4.041	/	4.3945
=	-91.96 %

where

	Invested Capital		(A: Dec. 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	))
=	4.995	-	1.18	-	( 0.464	-	max(0, 2.504	-	1.066	+	0.464	))
=	5.253

	Invested Capital		(A: Dec. 2016 )
=	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	))
=	3.723	-	0.937	-	( 0.161	-	max(0, 1.632	-	0.882	+	0.161	))
=	3.536

Legend Oil & Gas's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2016 is calculated as:

	ROC % (Q: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2016 )	+	Invested Capital (Q: Dec. 2016 ))	/ count )
=	-5.324 * ( 1 - 0% )	/	( (3.544	+	3.536)	/ 2 )
=	-5.324	/	3.54
=	-150.40 %

where

	Invested Capital		(Q: Sep. 2016 )
=	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	))
=	4.751	-	0.904	-	( 0.84	-	max(0, 1.549	-	1.852	+	0.84	))
=	3.544

	Invested Capital		(Q: Dec. 2016 )
=	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	))
=	3.723	-	0.937	-	( 0.161	-	max(0, 1.632	-	0.882	+	0.161	))
=	3.536

Note: The Operating Income data used here is four times the quarterly (Dec. 2016) data.

Legend Oil & Gas (OTCPK:LOGL) 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, Legend Oil & Gas's WACC % is 0.00%. Legend Oil & Gas's ROC % is 0.00% (calculated using TTM income statement data). Legend Oil & Gas 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.

Legend Oil & Gas ROC % Related Terms

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Legend Oil & Gas (Legend Oil & Gas) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Legend Oil & Gas Ltd (OTCPK:LOGL) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

555 North Point Center East, Suite 410, Alpharetta, GA, USA, 30022

Website

http://www.maxxonenergy.com

Legend Oil & Gas Ltd is a crude oil hauling and trucking company. The company's principal operations are in the Bakken region of North Dakota and the Permian Basin in Texas and New Mexico. It focuses is to grow its core business and expand its crude oil hauling operations into other basins throughout the United States. The company's only segment, as the oil and gas.

Executives

Neal P Kaufman	director	14315 WEST HARDY ROAD, HOUSTON TX 77060
Hillair Capital Investments Lp	10 percent owner	345 LORTON AVENUE, SUITE 303, BURLINGAME CA 94010
Sean M Mcavoy	10 percent owner	345 LORTON AVENUE, SUITE 303, BURLINGAME CA 94010
Hillair Capital Management Llc	10 percent owner	345 LORTON AVENUE, SUITE 303, BURLINGAME CA 94010
James Vandeberg	10 percent owner	10710 NE 10TH STREET #1307, BELLEVUE WA 98004
Steve S Sinohui	director, 10 percent owner	2789 S. LAMAR STREET DENVER CO 80227

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