MOCON (MOCO) ROC % : -0.38% (As of Mar. 2017)

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What is MOCON 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 %. MOCON's annualized return on capital (ROC %) for the quarter that ended in Mar. 2017 was -0.38%.

As of today (2024-05-07), MOCON's WACC % is 0.00%. MOCON's ROC % is 0.00% (calculated using TTM income statement data). MOCON earns returns that do not match up to its cost of capital. It will destroy value as it grows.

MOCON ROC % Historical Data

The historical data trend for MOCON'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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MOCON ROC % Chart

MOCON Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROC %

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6.33

8.68

4.13

8.51

15.02

MOCON Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
ROC %	Get a 7-Day Free Trial															6.14	6.92	25.13	21.62	-0.38

MOCON ROC % Calculation

MOCON'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 )
=	6.295 * ( 1 - 24.99% )	/	( (32.402	+	30.483)	/ 2 )
=	4.7218795	/	31.4425
=	15.02 %

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	))
=	47.419	-	8.673	-	( 6.344	-	max(0, 9.6	-	24.702	+	6.344	))
=	32.402

	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	))
=	48.448	-	9.652	-	( 8.313	-	max(0, 10.715	-	27.162	+	8.313	))
=	30.483

MOCON's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2017 is calculated as:

	ROC % (Q: Mar. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2016 )	+	Invested Capital (Q: Mar. 2017 ))	/ count )
=	3.272 * ( 1 - 103.47% )	/	( (30.483	+	28.969)	/ 2 )
=	-0.1135384	/	29.726
=	-0.38 %

where

	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	))
=	48.448	-	9.652	-	( 8.313	-	max(0, 10.715	-	27.162	+	8.313	))
=	30.483

	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	))
=	51.714	-	11.583	-	( 11.162	-	max(0, 13.095	-	30.908	+	11.162	))
=	28.969

Note: The Operating Income data used here is four times the quarterly (Mar. 2017) data.

MOCON (NAS:MOCO) 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, MOCON's WACC % is 0.00%. MOCON's ROC % is 0.00% (calculated using TTM income statement data). MOCON 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.

MOCON ROC % Related Terms

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MOCON (MOCO) Business Description

Industry

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Traded in Other Exchanges

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Address

Website

http://www.mocon.com

MOCON Inc was incorporated as a Minnesota corporation in February 1966. The Company designs, manufactures, markets and services products, and provides consulting services, in the test and measurement, analytical instrument and services markets. Its products includes instruments that detects, measures and monitors gases and other chemical compounds which help its customers improves the quality of their products, as well as develops new products. Its gas and vapor permeation instruments were first used in the food packaging industry, starting in the 1970s, to measure small amounts of moisture which can adversely affect dry cereals and other food packaging. The Company's products serve markets such as foods, beverages, pharmaceuticals and consumer products, oil and gas exploration and industrial and environmental safety. It develops, manufactures, markets and services test and measurement, analytical and monitoring instruments and systems used to detect, measure and analyze gases and other chemical compounds, as well as providing related consulting services. The market for these products consists of manufacturers of packaging materials, including manufacturers of papers, plastic films, coatings and containers and the users of such packaging materials, such as companies in the food, beverage, pharmaceutical and consumer product industries. Its other customers include manufacturers of flat panel displays, solar panels, electronics, and many other sophisticated materials. The Company has four operating segments which are combined into three reporting segments as follows; Permeation Products and Services, Package Testing Products and Services, and Industrial Analyzer Products and Services and Other. Its permeation products consist of systems and services that measure the rate at which various gases and vapors transmit through a variety of materials. These products perform measurements under precise temperature, pressure and relative humidity conditions. It manufactures and sells three products in this group; headspace analyzers, leak detection equipment and gas mixers. Its headspace analyzer products are used to analyze the amount and type of gas present in the headspace of flexible and rigid packages, as applied to gas flushing in modified or controlled atmosphere packaging. It manufactures and distributes gas analysis and monitoring instrumentation used in applications such as oil and gas exploration, process gas analysis, industrial hygiene and safety, environmental air monitoring and indoor air quality. Its microbial detection products are designed to rapidly detect microbial growth in food and beverage samples. The Company manufactures and sells three products in this group; headspace analyzers, leak detection equipment and gas mixers. Its trademarks and service marks include the following; MOCON, APCHECK, AQUATRACE, AQUATRAN, AROMATRAN, AROMATRAX, BASELINE, BEVALERT, CALCARD, CAL-SMART, CheckPoint, CMV-2, COULOX, FLO SMART, GREENL

Executives

Bradley D Goskowicz	director
Kathleen P Iverson	director	5900 GOLDEN HILLS DRIVE, GOLDEN VALLEY MN 55416
Robert F Gallagher	director	C/O RESISTANCE TECHNOLOGY INC 1260 RED FOX ROAD ARDEN HILLS MN 55112
Robert L Demorest	director, officer: Chairman, President and CEO	2235 VALE CREST, MINNEAPOLIS MN 55422
Paul R Zeller	director	C/O IMATION CORP, 1 IMATION PL, OAKDALE MN 55128
Darrell B Lee	officer: VP, CFO, Treasurer & Secretary	C/O MOCON, INC., 7500 BOONE AVENUE NORTH, MINNEAPOLIS MN 55428