Blackrock Hedge Selector (LSE:BHUE) ROC % : -0.78% (As of Jun. 2014)

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What is Blackrock Hedge Selector 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 %. Blackrock Hedge Selector's annualized return on capital (ROC %) for the quarter that ended in Jun. 2014 was -0.78%.

As of today (2024-05-13), Blackrock Hedge Selector's WACC % is 0.00%. Blackrock Hedge Selector's ROC % is 0.00% (calculated using TTM income statement data). Blackrock Hedge Selector earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Blackrock Hedge Selector ROC % Historical Data

The historical data trend for Blackrock Hedge Selector'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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Blackrock Hedge Selector ROC % Chart

Blackrock Hedge Selector Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

ROC %

-0.53

-0.57

-0.64

Blackrock Hedge Selector Semi-Annual Data
	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14
ROC %	Get a 7-Day Free Trial			-0.47	-0.68	-0.68	-0.53	-0.78

Blackrock Hedge Selector ROC % Calculation

Blackrock Hedge Selector's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2013 is calculated as:

	ROC % (A: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2012 )	+	Invested Capital (A: Dec. 2013 ))	/ count )
=	-0.328 * ( 1 - 0% )	/	( (61.254	+	40.702)	/ 2 )
=	-0.328	/	50.978
=	-0.64 %

where

	Invested Capital		(A: 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	))
=	61.467	-	0.293	-	( 0.211	-	max(0, 0.293	-	0.213	+	0.211	))
=	61.254

	Invested Capital		(A: Dec. 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	))
=	40.758	-	0.165	-	( 0.056	-	max(0, 0.165	-	0.056	+	0.056	))
=	40.702

Blackrock Hedge Selector's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2014 is calculated as:

	ROC % (Q: Jun. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2013 )	+	Invested Capital (Q: Jun. 2014 ))	/ count )
=	-0.288 * ( 1 - 0% )	/	( (40.702	+	33.52)	/ 2 )
=	-0.288	/	37.111
=	-0.78 %

where

	Invested Capital		(Q: Dec. 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	))
=	40.758	-	0.165	-	( 0.056	-	max(0, 0.165	-	0.056	+	0.056	))
=	40.702

	Invested Capital		(Q: Jun. 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	))
=	33.936	-	0.308	-	( 0.416	-	max(0, 0.308	-	0.416	+	0.416	))
=	33.52

Note: The Operating Income data used here is two times the semi-annual (Jun. 2014) data.

Blackrock Hedge Selector (LSE:BHUE) 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, Blackrock Hedge Selector's WACC % is 0.00%. Blackrock Hedge Selector's ROC % is 0.00% (calculated using TTM income statement data). Blackrock Hedge Selector 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.

Blackrock Hedge Selector ROC % Related Terms

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Blackrock Hedge Selector (LSE:BHUE) Business Description

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Address

Website

http://www.blackrock.co.uk

BlackRock Hedge Selector Ltd is a closed-ended investment company incorporated in Jersey on 17 August 2009. This fund was launched on 28 September 2009, initially offering two share classes; the UK Emerging Companies Shares, which invest directly into the BlackRock UK Emerging Companies Hedge Fund and the Cash Fund Shares, which invest directly into the BlackRock Institutional Sterling Liquidity Fund. The investment objective of the Hedge Fund is to seek to maximise total returns by investing in mid and small cap UK equities, whilst limiting correlation with the UK equity market. The investment objective of the Liquidity Fund is to maximise current income consistent with preservation of principal and liquidity by the maintenance of a portfolio of high quality short-term "money market" instruments.

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