RJD Green (RJD Green) ROC % : 39.29% (As of Aug. 2023)

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What is RJD Green 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 %. RJD Green's annualized return on capital (ROC %) for the quarter that ended in Aug. 2023 was 39.29%.

As of today (2024-05-20), RJD Green's WACC % is 7.69%. RJD Green's ROC % is 39.29% (calculated using TTM income statement data). RJD Green generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

RJD Green ROC % Historical Data

The historical data trend for RJD Green'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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RJD Green ROC % Chart

RJD Green Annual Data

Trend

Aug10

Aug11

Aug12

Aug13

Aug14

Aug15

Aug16

Aug22

Aug23

ROC %

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-15.52

62.07

134.85

49.98

39.29

RJD Green Semi-Annual Data
	Aug10	Aug11	Aug12	Aug13	Aug14	Aug15	Aug16	Aug22	Aug23
ROC %	Get a 7-Day Free Trial				-15.52	62.07	134.85	49.98	39.29

RJD Green ROC % Calculation

RJD Green's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2023 is calculated as:

	ROC % (A: Aug. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2022 )	+	Invested Capital (A: Aug. 2023 ))	/ count )
=	0.49 * ( 1 - 0% )	/	( (1.148	+	1.346)	/ 2 )
=	0.49	/	1.247
=	39.29 %

where

	Invested Capital		(A: Aug. 2022 )
=	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	))
=	2.025	-	0.407	-	( 0.47	-	max(0, 0.427	-	1.54	+	0.47	))
=	1.148

	Invested Capital		(A: Aug. 2023 )
=	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	))
=	2.456	-	0.327	-	( 0.783	-	max(0, 0.334	-	2	+	0.783	))
=	1.346

RJD Green's annualized Return on Capital (ROC %) for the quarter that ended in Aug. 2023 is calculated as:

	ROC % (Q: Aug. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2022 )	+	Invested Capital (Q: Aug. 2023 ))	/ count )
=	0.49 * ( 1 - 0% )	/	( (1.148	+	1.346)	/ 2 )
=	0.49	/	1.247
=	39.29 %

where

	Invested Capital		(Q: Aug. 2022 )
=	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	))
=	2.025	-	0.407	-	( 0.47	-	max(0, 0.427	-	1.54	+	0.47	))
=	1.148

	Invested Capital		(Q: Aug. 2023 )
=	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	))
=	2.456	-	0.327	-	( 0.783	-	max(0, 0.334	-	2	+	0.783	))
=	1.346

Note: The Operating Income data used here is one times the annual (Aug. 2023) data.

RJD Green (OTCPK:RJDG) 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, RJD Green's WACC % is 7.69%. RJD Green's ROC % is 39.29% (calculated using TTM income statement data). RJD Green generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

RJD Green ROC % Related Terms

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RJD Green (RJD Green) Business Description

Industry

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Address

5151 South Mingo Road, Suite F, Tulsa, OK, USA, 741146

Website

http://www.rjdgreen.com

RJD Green Inc a development stage company. The company is focused on acquiring and managing assets and companies. It operates in three sectors namely Green environmental, Energy and Specialty contracting services sectors.