Next10 (Next10) ROC % : -113.31% (As of May. 2006)

View and export this data going back to 2003. Start your Free Trial

What is Next10 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 %. Next10's annualized return on capital (ROC %) for the quarter that ended in May. 2006 was -113.31%.

As of today (2024-06-09), Next10's WACC % is 0.00%. Next10's ROC % is 0.00% (calculated using TTM income statement data). Next10 earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Next10 ROC % Historical Data

The historical data trend for Next10'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.

Next10 ROC % Chart

Next10 Annual Data

Trend

Aug02

Aug03

Aug04

ROC %

-700.00

-61.54

-352.53

Next10 Quarterly Data
	Aug02	Feb03	May03	Aug03	Nov03	Feb04	May04	Aug04	Nov04	Feb05	May05	Aug05	Nov05	Feb06	May06
ROC %	Get a 7-Day Free Trial										-314.17	-339.57	-238.77	-104.70	-113.31

Next10 ROC % Calculation

Next10's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2004 is calculated as:

	ROC % (A: Aug. 2004 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2003 )	+	Invested Capital (A: Aug. 2004 ))	/ count )
=	-3.379 * ( 1 - % )	/	( (0.127	+	1.79)	/ 2 )
=	-3.379	/	0.9585
=	-352.53 %

where

	Invested Capital		(A: Aug. 2003 )
=	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	))
=	0.085	-	0.235	-	( 0.025	-	max(0, 0.348	-	0.071	+	0.025	))
=	0.127

	Invested Capital		(A: Aug. 2004 )
=	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	))
=	4.206	-	0.554	-	( 3.407	-	max(0, 2.065	-	3.927	+	3.407	))
=	1.79

Next10's annualized Return on Capital (ROC %) for the quarter that ended in May. 2006 is calculated as:

	ROC % (Q: May. 2006 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Feb. 2006 )	+	Invested Capital (Q: May. 2006 ))	/ count )
=	-7.068 * ( 1 - % )	/	( (7.243	+	5.233)	/ 2 )
=	-7.068	/	6.238
=	-113.31 %

where

	Invested Capital		(Q: Feb. 2006 )
=	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	))
=	5.08	-	0.495	-	( 1.438	-	max(0, 5.167	-	2.509	+	1.438	))
=	7.243

	Invested Capital		(Q: May. 2006 )
=	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	))
=	3.614	-	0.402	-	( 0.659	-	max(0, 3.362	-	1.341	+	0.659	))
=	5.233

Note: The Operating Income data used here is four times the quarterly (May. 2006) data.

Next10 (OTCPK:NXTN) 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, Next10's WACC % is 0.00%. Next10's ROC % is 0.00% (calculated using TTM income statement data). Next10 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.

Next10 ROC % Related Terms

Thank you for viewing the detailed overview of Next10's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Next10 (Next10) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Next10 Inc (OTCPK:NXTN) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

4663 S. Enterprise Street, Boise, ID, USA, 83705

Website

https://www.ultimateholdingscorp.com

Next10 Inc is engaged in the truck shipping of refrigerated and frozen food products. The company generates revenue from the freight shipments and also from leasing equipment to their independent owner-operators.