Turbo Power Systems (LSE:TPS) ROC %: -29.81% (As of Jun. 2017)


What is Turbo Power Systems ROC %?

Turbo Power Systems LSE:TPS +16.67% ROC % is -29.81% as of Jun. 2017. The stock has 6 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Turbo Power Systems's annualized return on capital (ROC %) for the quarter that ended in Jun. 2017 was -29.81%.

As of today (2026-06-25), Turbo Power Systems's WACC % is 1.50%. Turbo Power Systems's ROC % is -110.50% (calculated using TTM income statement data). Turbo Power Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Turbo Power Systems  (LSE:TPS) 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, Turbo Power Systems's WACC % is 1.50%. Turbo Power Systems's ROC % is -110.50% (calculated using TTM income statement data). Turbo Power Systems 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.

Turbo Power Systems ROC % Related Terms

Turbo Power Systems ROC % Historical Data

* Premium members only.

The historical data trend for Turbo Power Systems'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.

Turbo Power Systems ROC % Chart

Turbo Power Systems Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -84.55 -53.17 -41.74 -2.12 -12.45

Turbo Power Systems Quarterly Data
Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 19.09 3.04 -77.55 -28.49 -29.81

Turbo Power Systems ROC % Calculation

Turbo Power Systems'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 )
=-0.596 * ( 1 - 0% )/( (4.848 + 4.728)/ 2 )
=-0.596/4.788
=-12.45 %

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))
=7.519 - 2.175 - ( 0.496 - max(0, 3.71 - 6.652+0.496))
=4.848

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))
=7.007 - 1.714 - ( 0.565 - max(0, 3.613 - 6.174+0.565))
=4.728

Turbo Power Systems's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2017 is calculated as:

ROC % (Q: Jun. 2017 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2017 ) + Invested Capital (Q: Jun. 2017 ))/ count )
=-1.068 * ( 1 - 0% )/( (3.725 + 3.44)/ 2 )
=-1.068/3.5825
=-29.81 %

where

Invested Capital(Q: Mar. 2017 )
=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))
=7.169 - 3.074 - ( 0.37 - max(0, 4.119 - 6.292+0.37))
=3.725

Invested Capital(Q: Jun. 2017 )
=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))
=6.167 - 2.374 - ( 0.353 - max(0, 3.424 - 5.309+0.353))
=3.44

Note: The Operating Income data used here is four times the quarterly (Jun. 2017) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -29.81% mean?
Turbo Power Systems (LSE:TPS) has a ROC % of -29.81% as of Jun. 2017. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Turbo Power Systems and its competitors.
Is Turbo Power Systems' ROC % too high?
Turbo Power Systems' current ROC % is -29.81%.
How does Turbo Power Systems' ROC % compare to competitors?
Turbo Power Systems' ROC % of -29.81% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.23. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Industrial Products company?
The median ROC % among Industrial Products companies is 5.23, based on 3,040 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Turbo Power Systems and its competitors. For the Industrial Products industry, the median ROC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Turbo Power Systems's current ROC % is -29.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Turbo Power Systems stock overvalued right now?
Turbo Power Systems (LSE:TPS) has a current ROC % of -29.81%. The current ROC % is -29.81%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Turbo Power Systems (LSE:TPS), the current ROC % is -29.81% as of Jun. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Turbo Power Systems Business Description

Turbo Power Systems Inc was incorporated on March 23, 1987. The Company designs and manufactures high-speed electric motors, generators and power electronics systems and provides bespoke solutions to transport, industrial, energy conversion, and military markets The Company conducts operations through its wholly owned subsidiary company, Turbo Power Systems Limited.