Soul and Vibe Interactive (Soul and Vibe Interactive) ROC % : -37.69% (As of Jun. 2016)

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What is Soul and Vibe Interactive 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 %. Soul and Vibe Interactive's annualized return on capital (ROC %) for the quarter that ended in Jun. 2016 was -37.69%.

As of today (2024-06-20), Soul and Vibe Interactive's WACC % is 0.00%. Soul and Vibe Interactive's ROC % is 0.00% (calculated using TTM income statement data). Soul and Vibe Interactive earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Soul and Vibe Interactive ROC % Historical Data

The historical data trend for Soul and Vibe Interactive'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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Soul and Vibe Interactive ROC % Chart

Soul and Vibe Interactive Annual Data

Trend

Feb12

Dec13

Dec14

Dec15

ROC %

-120.00

-92.65

-91.91

-67.33

Soul and Vibe Interactive Quarterly Data
	Aug11	Nov11	Feb12	May12	Aug12	Nov12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
ROC %	Get a 7-Day Free Trial															-67.94	-42.40	-60.45	-59.16	-37.69

Soul and Vibe Interactive ROC % Calculation

Soul and Vibe Interactive's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	-1.218 * ( 1 - 0% )	/	( (1.684	+	1.934)	/ 2 )
=	-1.218	/	1.809
=	-67.33 %

where

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	0.435	-	0.381	-	( 0.026	-	max(0, 1.673	-	0.043	+	0.026	))
=	1.684

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	0.46	-	0.923	-	( 0.007	-	max(0, 2.447	-	0.05	+	0.007	))
=	1.934

Soul and Vibe Interactive's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2016 is calculated as:

	ROC % (Q: Jun. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2016 )	+	Invested Capital (Q: Jun. 2016 ))	/ count )
=	-0.848 * ( 1 - 0% )	/	( (1.69	+	2.81)	/ 2 )
=	-0.848	/	2.25
=	-37.69 %

where

	Invested Capital		(Q: Mar. 2016 )
=	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	))
=	0.416	-	1.052	-	( 0.005	-	max(0, 2.346	-	0.02	+	0.005	))
=	1.69

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	0.407	-	1.152	-	( 0.001	-	max(0, 3.566	-	0.011	+	0.001	))
=	2.81

Note: The Operating Income data used here is four times the quarterly (Jun. 2016) data.

Soul and Vibe Interactive (GREY:SOUL) 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, Soul and Vibe Interactive's WACC % is 0.00%. Soul and Vibe Interactive's ROC % is 0.00% (calculated using TTM income statement data). Soul and Vibe Interactive 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.

Soul and Vibe Interactive ROC % Related Terms

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Soul and Vibe Interactive (Soul and Vibe Interactive) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Soul and Vibe Interactive Inc (GREY:SOUL) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

6548 South Big Cottonwood Canyon Road, Suite 200, Salt Lake City, UT, USA, 84121

Website

http://www.soulandvibe.com

Soul and Vibe Interactive Inc publish games, interactive books, and downloadable/streamable music for digital devices. The company develops, publishes, and distributes interactive entertainment games and interactive books for video game consoles, mobile and augmented reality/wearable tech devices, personal computers, and social media platforms. It develops, publishes, and distribute music for play on digital devices through downloadable/streamable channels that include Apple Music, iTunes, Google Play, Amazon, Deezer, YouTube Music, Beats/MediaNet, and Microsoft Groove.

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