QRS Music Technologies (QRS Music Technologies) ROC % : -8.53% (As of Mar. 2007)

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What is QRS Music 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 %. QRS Music Technologies's annualized return on capital (ROC %) for the quarter that ended in Mar. 2007 was -8.53%.

As of today (2024-05-28), QRS Music Technologies's WACC % is 0.00%. QRS Music Technologies's ROC % is 0.00% (calculated using TTM income statement data). QRS Music Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

QRS Music Technologies ROC % Historical Data

The historical data trend for QRS Music 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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QRS Music Technologies ROC % Chart

QRS Music Technologies Annual Data

Trend

Jun01

Jun02

Jun03

Jun04

Jun05

Jun06

ROC %

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12.04

13.94

20.12

13.42

1.82

QRS Music Technologies Quarterly Data
	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07
ROC %	Get a 7-Day Free Trial															-0.79	-7.93	-10.93	10.41	-8.53

QRS Music Technologies ROC % Calculation

QRS Music Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2006 is calculated as:

	ROC % (A: Jun. 2006 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2005 )	+	Invested Capital (A: Jun. 2006 ))	/ count )
=	0.4 * ( 1 - 54.62% )	/	( (9.182	+	10.769)	/ 2 )
=	0.18152	/	9.9755
=	1.82 %

where

	Invested Capital		(A: Jun. 2005 )
=	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	))
=	11.783	-	1.998	-	( 0.603	-	max(0, 2.357	-	10.456	+	0.603	))
=	9.182

	Invested Capital		(A: Jun. 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	))
=	13.046	-	2.221	-	( 0.056	-	max(0, 2.575	-	10.907	+	0.056	))
=	10.769

QRS Music Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2007 is calculated as:

	ROC % (Q: Mar. 2007 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2006 )	+	Invested Capital (Q: Mar. 2007 ))	/ count )
=	-1.344 * ( 1 - 35.53% )	/	( (9.907	+	10.402)	/ 2 )
=	-0.8664768	/	10.1545
=	-8.53 %

where

	Invested Capital		(Q: Dec. 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	))
=	12.872	-	2.146	-	( 0.819	-	max(0, 2.484	-	10.799	+	0.819	))
=	9.907

	Invested Capital		(Q: Mar. 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	))
=	12.333	-	1.556	-	( 0.375	-	max(0, 2.06	-	9.912	+	0.375	))
=	10.402

Note: The Operating Income data used here is four times the quarterly (Mar. 2007) data.

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

QRS Music Technologies ROC % Related Terms

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QRS Music Technologies (QRS Music Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » QRS Music Technologies Inc (OTCPK:QRSM) » Definitions » ROC %

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Address

269 Quaker Drive, Seneca, PA, USA, 16346

Website

https://www.qrsmusic.com

QRS Music Technologies Inc manufactures and distributes pianos, pianomation units and compact discs and music rolls for use in player pianos. The firm has a presence in Buffalo, New York and Seneca, Pennsylvania within the United States and internationally in Belmain NSW, Australia. It also operates a sales and procurement office in Hong Kong, China.

QRS Music Technologies (QRS Music Technologies) Headlines

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