NEOM (NeoMedia Technologies) ROC % : 3.16% (As of Sep. 2015)

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What is NeoMedia Technologies 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 %. NeoMedia Technologies's annualized return on capital (ROC %) for the quarter that ended in Sep. 2015 was 3.16%.

As of today (2024-09-25), NeoMedia Technologies's WACC % is 0.00%. NeoMedia Technologies's ROC % is 0.00% (calculated using TTM income statement data). NeoMedia Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

NeoMedia Technologies ROC % Historical Data

The historical data trend for NeoMedia Technologies'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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NeoMedia Technologies ROC % Chart

NeoMedia Technologies Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROC %

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-6.06

-7.15

-7.51

1.21

0.17

NeoMedia Technologies Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
ROC %	Get a 7-Day Free Trial															2.05	1.64	2.08	3.23	3.16

NeoMedia Technologies ROC % Calculation

NeoMedia Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2014 is calculated as:

	ROC % (A: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2013 )	+	Invested Capital (A: Dec. 2014 ))	/ count )
=	0.072 * ( 1 - 0% )	/	( (46.175	+	39.793)	/ 2 )
=	0.072	/	42.984
=	0.17 %

where

	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	))
=	5.305	-	0.462	-	( 0.267	-	max(0, 42.001	-	0.669	+	0.267	))
=	46.175

	Invested Capital		(A: Dec. 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	))
=	1.284	-	0.721	-	( 0.075	-	max(0, 39.551	-	0.321	+	0.075	))
=	39.793

NeoMedia Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2015 is calculated as:

	ROC % (Q: Sep. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2015 )	+	Invested Capital (Q: Sep. 2015 ))	/ count )
=	1.328 * ( 1 - 0% )	/	( (42.293	+	41.809)	/ 2 )
=	1.328	/	42.051
=	3.16 %

where

	Invested Capital		(Q: Jun. 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	))
=	1.154	-	0.642	-	( 0.03	-	max(0, 42.095	-	0.314	+	0.03	))
=	42.293

	Invested Capital		(Q: Sep. 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	))
=	1.177	-	0.604	-	( 0.034	-	max(0, 41.634	-	0.398	+	0.034	))
=	41.809

Note: The Operating Income data used here is four times the quarterly (Sep. 2015) data.

NeoMedia Technologies (OTCPK:NEOM) 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, NeoMedia Technologies's WACC % is 0.00%. NeoMedia Technologies's ROC % is 0.00% (calculated using TTM income statement data). NeoMedia Technologies 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.

NeoMedia Technologies ROC % Related Terms

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NeoMedia Technologies Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » NeoMedia Technologies Inc (OTCPK:NEOM) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

1515 Walnut Street, Suite 100, Boulder, CO, USA, 80302

Website

http://www.neom.com

NeoMedia Technologies Inc is a U.S based company engaged in the development of two dimensional (2D) mobile barcode technology and services solutions that enable the mobile barcode ecosystem around the world. With the company's technology, mobile devices with cameras become barcode scanners, enabling a range of practical applications, including mobile marketing and mobile commerce.

Executives

Jeff J Huitt	officer: Chief Financial Officer	10651 WEST 34TH PLACE, WHEAT RIDGE CO 80033
Patrick Soon-shiong	10 percent owner	9922 JEFFERSON BOULEVARD, CULVER CITY CA 90232
J Michael Cline	10 percent owner	51 MADISON AVENUE, 31ST FL, NEW YORK NY 10010
Sarah Ann Fay	director	5 GORHAN AVENUE, BROOKLINE MA 02445
Cornell Capital Partners Lp	10 percent owner	101 HUDSON STREET, SUITE 3606, JERSEY CITY NJ 07302
Marc Angelo	10 percent owner	101 HUDSON STREET, JERSEY CITY NJ 07302
Yorkville Advisors Llc	10 percent owner	101 HUDSON STREET, JERSEY CITY NJ 07302

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