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MOBO (Mobile Lads) ROC % : -166.91% (As of Jul. 2016)


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What is Mobile Lads 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 %. Mobile Lads's annualized return on capital (ROC %) for the quarter that ended in Jul. 2016 was -166.91%.

As of today (2024-09-26), Mobile Lads's WACC % is 0.00%. Mobile Lads's ROC % is 0.00% (calculated using TTM income statement data). Mobile Lads earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mobile Lads ROC % Historical Data

The historical data trend for Mobile Lads'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.

* Premium members only.

Mobile Lads ROC % Chart

Mobile Lads Annual Data
Trend Apr13 Apr14 Apr15
ROC %
- - -197.95

Mobile Lads Quarterly Data
Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16
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 -122.86 -2,622.75 -3,964.04 -223.98 -166.91

Mobile Lads ROC % Calculation

Mobile Lads's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2015 is calculated as:

ROC % (A: Apr. 2015 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Apr. 2014 ) + Invested Capital (A: Apr. 2015 ))/ count )
=-0.289 * ( 1 - 0% )/( (0 + 0.146)/ 1 )
=-0.289/0.146
=-197.95 %

where

Invested Capital(A: Apr. 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))
=0 - 0 - ( 0 - max(0, 0 - 0+0))
=0

Invested Capital(A: Apr. 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))
=0.146 - 0.024 - ( 0 - max(0, 0.024 - 0+0))
=0.146

Mobile Lads's annualized Return on Capital (ROC %) for the quarter that ended in Jul. 2016 is calculated as:

ROC % (Q: Jul. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Apr. 2016 ) + Invested Capital (Q: Jul. 2016 ))/ count )
=-2.552 * ( 1 - 0% )/( (1.544 + 1.514)/ 2 )
=-2.552/1.529
=-166.91 %

where

Invested Capital(Q: Apr. 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))
=1.645 - 0.177 - ( 0.097 - max(0, 0.187 - 0.111+0.097))
=1.544

Invested Capital(Q: Jul. 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))
=1.46 - 0.208 - ( 0.005 - max(0, 0.284 - 0.022+0.005))
=1.514

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

* 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.

Mobile Lads  (OTCPK:MOBO) 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, Mobile Lads's WACC % is 0.00%. Mobile Lads's ROC % is 0.00% (calculated using TTM income statement data). Mobile Lads 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.

Mobile Lads ROC % Related Terms

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Mobile Lads Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Mobile Lads Corp (OTCPK:MOBO) » Definitions » ROC %
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Traded in Other Exchanges
N/A
Address
2616 Willow Wren Drive, North Las Vegas, NV, USA, 89084
Website
http://www.mobilelads.com
Mobile Lads Corp provides consumers with a suite of products and services covering hardware and software solutions. Through its manufacturing and business partners, Mobile Lads is able to supply superior-quality smartphones and other mobile devices and services to businesses and their consumer base. Because of the relationships with its partners, the company creates residual income streams through the sale of benefits and services, including insurance and MasterCard issuance, and international money remittance.