RWWI has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
RWWI has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Rand Worldwide's annualized return on capital (ROC %) for the quarter that ended in Dec. 2019 was 43.69%.
As of today (2024-09-21), Rand Worldwide's WACC % is 0.00%. Rand Worldwide's ROC % is 0.00% (calculated using TTM income statement data). Rand Worldwide earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Rand Worldwide'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.
Rand Worldwide Annual Data | |||||||||||||||||||||
Trend | Jun10 | Jun11 | Jun12 | Jun13 | Jun14 | Jun15 | Jun16 | Jun17 | Jun18 | Jun19 | |||||||||||
ROC % | Get a 7-Day Free Trial | 11.31 | 17.56 | 9.56 | 6.57 | 22.24 |
Rand Worldwide Quarterly Data | ||||||||||||||||||||
Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | Sep18 | Dec18 | Mar19 | Jun19 | Sep19 | Dec19 | |
ROC % | Get a 7-Day Free Trial | 25.12 | 32.01 | 23.04 | 30.02 | 43.69 |
Rand Worldwide's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2019 is calculated as:
ROC % (A: Jun. 2019 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (A: Jun. 2018 ) | + | Invested Capital (A: Jun. 2019 )) | / count ) |
= | 17.23 * ( 1 - 26.18% ) | / | ( (44.058 | + | 70.316) | / 2 ) |
= | 12.719186 | / | 57.187 | |||
= | 22.24 % |
where
Invested Capital | (A: Jun. 2018 ) | |||||||||||
= | 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 | )) |
= | 53.224 | - | 10.091 | - | ( 0.91 | - | max(0, 19.113 | - | 18.188 | + | 0.91 | )) |
= | 44.058 |
Invested Capital | (A: Jun. 2019 ) | |||||||||||
= | 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 | )) |
= | 87.213 | - | 20.153 | - | ( 0.689 | - | max(0, 35.328 | - | 32.072 | + | 0.689 | )) |
= | 70.316 |
Rand Worldwide's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2019 is calculated as:
ROC % (Q: Dec. 2019 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Sep. 2019 ) | + | Invested Capital (Q: Dec. 2019 )) | / count ) |
= | 43.996 * ( 1 - 28.36% ) | / | ( (70.978 | + | 73.309) | / 2 ) |
= | 31.5187344 | / | 72.1435 | |||
= | 43.69 % |
where
Invested Capital | (Q: Sep. 2019 ) | |||||||||||
= | 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 | )) |
= | 89.898 | - | 19.174 | - | ( 1.877 | - | max(0, 35.872 | - | 35.618 | + | 1.877 | )) |
= | 70.978 |
Invested Capital | (Q: Dec. 2019 ) | |||||||||||
= | 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 | )) |
= | 110.494 | - | 29.482 | - | ( 13.772 | - | max(0, 44.504 | - | 52.207 | + | 13.772 | )) |
= | 73.309 |
Note: The Operating Income data used here is four times the quarterly (Dec. 2019) data.
* 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.
Rand Worldwide (OTCPK:RWWI) 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, Rand Worldwide's WACC % is 0.00%. Rand Worldwide's ROC % is 0.00% (calculated using TTM income statement data). Rand Worldwide 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.
Thank you for viewing the detailed overview of Rand Worldwide's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lawrence Rychlak | director, officer: Chief Executive Officer | 14 PEBBLE LANE TIMONIUM MD 21093 |
Philip B Livingston | director | 1241 EAST MAIN ST, STAMFORD CT 06902 |
David Michael Schneider | director | 36 ROSEWOOD DRIVE EASTON CT 06612 |
Dulude Marc J L | director, officer: Chief Executive Officer | 55 WILLIAM ST STE 240 WELLESLEY MA 02481 |
2006 L P Ampersand | other: Former 10% owner | 55 WILLIAM ST SUITE 240 WELLESLEY MA 02481 |
Amp-06 Mc Llc | other: Former 10% owner | C/O AMPERSAND VENTURES 55 WILLIAM STREET, SUITE 240 WELLESLEY MA 02481 |
Amp-06 Management Co Limited Partnership | other: Former 10% owner | C/O AMPERSAND VENTURES 55 WILLIAM STREET, SUITE 240 WELLESLEY MA 02481 |
Rwwi Holdings Llc | other: Former 10% owner | C/O AMPERSAND VENTURES 55 WILLIAM STREET, SUITE 240 WELLESLEY MA 02481 |
Manu Parpia | director | GODREJ BHAVAN, 4A HOME STREET FORT, BOMBAY K7 400 001 |
Peter H Kamin | director, 10 percent owner | 2720 DONALD ROSS ROAD, #311, PALM BEACH GARDENS FL 33410 |
Robert Francis Heeg | officer: Executive Vice President | 10022 JAMESTOWN DRIVE NORTH ROYAL OH 44133 |
George M Davis | director | |
Eugene J Fischer | director | 245 LANING DRIVE WOODSIDE CA 94062 |
3k Limited Partnership | other: See Explanation of Responses | ONE AVERY STREET 17B BOSTON MA 02111 |
Peter H. Kamin Childrens Trust | other: See Explanation of Responses | ONE AVERY STREET 17B BOSTON MA 02111 |
From GuruFocus
By PRNewswire PRNewswire • 11-14-2019
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.