1PM Industries (1PM Industries) ROC % : 3.95% (As of Nov. 2017)

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What is 1PM Industries 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 %. 1PM Industries's annualized return on capital (ROC %) for the quarter that ended in Nov. 2017 was 3.95%.

As of today (2024-05-24), 1PM Industries's WACC % is 0.00%. 1PM Industries's ROC % is 0.00% (calculated using TTM income statement data). 1PM Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

1PM Industries ROC % Historical Data

The historical data trend for 1PM Industries'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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1PM Industries ROC % Chart

1PM Industries Annual Data

Trend

Mar02

Mar03

Mar04

Mar05

Mar06

Mar07

Mar08

Feb15

Feb16

Feb17

ROC %

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-25.96

-7.14

-191.83

1PM Industries Quarterly Data
	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Nov14	Feb15	May15	Aug15	Nov15	Feb16	May16	Aug16	Nov16	Feb17	May17	Aug17	Nov17
ROC %	Get a 7-Day Free Trial															-	-537.39	-312.84	6.20	3.95

1PM Industries ROC % Calculation

1PM Industries's annualized Return on Capital (ROC %) for the fiscal year that ended in Feb. 2017 is calculated as:

	ROC % (A: Feb. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Feb. 2016 )	+	Invested Capital (A: Feb. 2017 ))	/ count )
=	-0.751 * ( 1 - 0% )	/	( (0.154	+	0.629)	/ 2 )
=	-0.751	/	0.3915
=	-191.83 %

where

	Invested Capital		(A: Feb. 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	))
=	0.028	-	0.002	-	( 0.009	-	max(0, 0.137	-	0.009	+	0.009	))
=	0.154

	Invested Capital		(A: Feb. 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	))
=	12.591	-	0.291	-	( 12.567	-	max(0, 0.901	-	12.572	+	12.567	))
=	0.629

1PM Industries's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2017 is calculated as:

	ROC % (Q: Nov. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2017 )	+	Invested Capital (Q: Nov. 2017 ))	/ count )
=	0.1 * ( 1 - 0% )	/	( (2.01	+	3.05)	/ 2 )
=	0.1	/	2.53
=	3.95 %

where

	Invested Capital		(Q: Aug. 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	))
=	1.036	-	0.038	-	( 0.627	-	max(0, 1.639	-	0.627	+	0.627	))
=	2.01

	Invested Capital		(Q: Nov. 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	))
=	0.649	-	0.041	-	( 0.168	-	max(0, 2.61	-	0.168	+	0.168	))
=	3.05

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

1PM Industries (GREY:OPMZ) 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, 1PM Industries's WACC % is 0.00%. 1PM Industries's ROC % is 0.00% (calculated using TTM income statement data). 1PM Industries 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.

1PM Industries ROC % Related Terms

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1PM Industries (1PM Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » 1PM Industries Inc (GREY:OPMZ) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

312 S Beverly Drive, Number. 3401, Beverly Hills, CA, USA, 90212

Website

http://www.1pmindustries.com

1PM Industries Inc provides consulting services to a wide variety of companies in diverse industries. Its target companies are in the startup phase of their operations.

Executives

Michael Patrick Raleigh	director	SUITE 550, 10000 MEMORIAL DRIVE, HOUSTON TX 77024
William A Lansing	director	93962 BRIDGE VIEW LANE, NORTH BEND OR 97459
Thomas E Mills	director, officer: President, CEO, CFO, Secretary
Lou Hilford	director, officer: Chief Operating Officer

1PM Industries (1PM Industries) Headlines

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