RCIT (Reelcause) ROC %: -1.67% (As of Sep. 2012)


What is Reelcause ROC %?

Reelcause RCIT ROC % is -1.67% as of Sep. 2012.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Reelcause's annualized return on capital (ROC %) for the quarter that ended in Sep. 2012 was -1.67%.

As of today (2026-06-25), Reelcause's WACC % is 0.00%. Reelcause's ROC % is 0.00% (calculated using TTM income statement data). Reelcause earns returns that do not match up to its cost of capital. It will destroy value as it grows.

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

Reelcause ROC % Related Terms

Reelcause ROC % Historical Data

* Premium members only.

The historical data trend for Reelcause'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.

Reelcause ROC % Chart

Reelcause Annual Data
Trend Oct08 Oct09 Dec10 Dec11
ROC %
0.00 0.00 22.47 -7.04

Reelcause Quarterly Data
Oct08 Jan09 Apr09 Jul09 Oct09 Jan10 Apr10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -14.65 -4.09 8.14 13.84 -1.67

Reelcause ROC % Calculation

Reelcause's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2011 is calculated as:

ROC % (A: Dec. 2011 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2010 ) + Invested Capital (A: Dec. 2011 ))/ count )
=-1.503 * ( 1 - 0% )/( (18.215 + 24.513)/ 2 )
=-1.503/21.364
=-7.04 %

where

Invested Capital(A: Dec. 2010 )
=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))
=35.667 - 19.982 - ( 1.081 - max(0, 29.995 - 27.465+1.081))
=18.215

Invested Capital(A: Dec. 2011 )
=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))
=50.127 - 33.774 - ( 1.014 - max(0, 46.402 - 38.242+1.014))
=24.513

Reelcause's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2012 is calculated as:

ROC % (Q: Sep. 2012 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2012 ) + Invested Capital (Q: Sep. 2012 ))/ count )
=-0.556 * ( 1 - 26.59% )/( (23.257 + 25.557)/ 2 )
=-0.4081596/24.407
=-1.67 %

where

Invested Capital(Q: Jun. 2012 )
=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))
=58.328 - 43.755 - ( 0.383 - max(0, 53.426 - 44.742+0.383))
=23.257

Invested Capital(Q: Sep. 2012 )
=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))
=58.521 - 41.618 - ( 2.054 - max(0, 53.812 - 45.158+2.054))
=25.557

Note: The Operating Income data used here is four times the quarterly (Sep. 2012) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -1.67% mean?
Reelcause (RCIT) has a ROC % of -1.67% as of Sep. 2012. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Reelcause and its competitors.
Is Reelcause's ROC % too high?
Reelcause's current ROC % is -1.67%.
How does Reelcause's ROC % compare to TNRG?
Reelcause's ROC % of -1.67% can be compared against companies in the Industrial Products industry. The industry median ROC % is 5.23. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Industrial Products company?
The median ROC % among Industrial Products companies is 5.23, based on 3,039 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Reelcause and its competitors. For the Industrial Products industry, the median ROC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reelcause's current ROC % is -1.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reelcause stock overvalued right now?
Reelcause (RCIT) has a current ROC % of -1.67%. The current ROC % is -1.67%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Reelcause (RCIT), the current ROC % is -1.67% as of Sep. 2012. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Reelcause Business Description

Address 4760 S Pecos Road, Suite 103, Las Vegas, NV, USA, 89121
Reelcause Inc focuses on commercializing patented technology related to new renewable energy projects. Its Product family include hydrogen gas range, hydrogen boiler, hydrogen hot air fan, hydrogen water purifier, hydrogen water source wave, hydrogen drone, hydrogen ene farm, and realization of smart farm using hydrogen boiler.