Powersafe Technology (Powersafe Technology) ROC % : -32.35% (As of Dec. 2008)

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What is Powersafe Technology 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 %. Powersafe Technology's annualized return on capital (ROC %) for the quarter that ended in Dec. 2008 was -32.35%.

As of today (2024-06-07), Powersafe Technology's WACC % is 0.00%. Powersafe Technology's ROC % is 0.00% (calculated using TTM income statement data). Powersafe Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Powersafe Technology ROC % Historical Data

The historical data trend for Powersafe Technology'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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Powersafe Technology ROC % Chart

Powersafe Technology Annual Data

Trend

Dec07

Dec08

ROC %

-391.67

-31.74

Powersafe Technology Quarterly Data
	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08
ROC %	Get a 7-Day Free Trial			-373.33	-313.04	-39.74	-12.17	-32.35

Powersafe Technology ROC % Calculation

Powersafe Technology's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2008 is calculated as:

	ROC % (A: Dec. 2008 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2007 )	+	Invested Capital (A: Dec. 2008 ))	/ count )
=	-0.233 * ( 1 - % )	/	( (0.012	+	1.456)	/ 2 )
=	-0.233	/	0.734
=	-31.74 %

where

	Invested Capital		(A: Dec. 2007 )
=	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	))
=	0.015	-	0.007	-	( 0.003	-	max(0, 0.007	-	0.003	+	0.003	))
=	0.012

	Invested Capital		(A: Dec. 2008 )
=	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	))
=	1.393	-	0.161	-	( 0	-	max(0, 0.239	-	0.015	+	0	))
=	1.456

Powersafe Technology's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2008 is calculated as:

	ROC % (Q: Dec. 2008 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2008 )	+	Invested Capital (Q: Dec. 2008 ))	/ count )
=	-0.456 * ( 1 - % )	/	( (1.363	+	1.456)	/ 2 )
=	-0.456	/	1.4095
=	-32.35 %

where

	Invested Capital		(Q: Sep. 2008 )
=	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	))
=	1.343	-	0.044	-	( 0	-	max(0, 0.079	-	0.015	+	0	))
=	1.363

	Invested Capital		(Q: Dec. 2008 )
=	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	))
=	1.393	-	0.161	-	( 0	-	max(0, 0.239	-	0.015	+	0	))
=	1.456

Note: The Operating Income data used here is four times the quarterly (Dec. 2008) data.

Powersafe Technology (OTCPK:PSFT) 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, Powersafe Technology's WACC % is 0.00%. Powersafe Technology's ROC % is 0.00% (calculated using TTM income statement data). Powersafe Technology 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.

Powersafe Technology ROC % Related Terms

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Powersafe Technology (Powersafe Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Powersafe Technology Corp (OTCPK:PSFT) » Definitions » ROC %

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Address

3412 Progress Drive, Bensalem, PA, USA, 19020

Website

http://www.ampti.net

Powersafe Technology Corp develops a new semiconductor detection technology for extremely high sensitivity electronic and photonic detection. The company uses an application such as Laser Range Finding (LRF), Night vision, Imaging systems and NIR cameras, Security systems, PET Scanners, Medical imaging, Fluorescence Detection, High energy physics, Hyper-spectral spectroscopy, Spectroscopy, and Biological Sensors. It offers services to industries such as medical diagnostics, drug development, scientific instrumentation, and homeland security.

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