Octopus Biosafety (STU:OCR) ROC % : -4.07% (As of Jun. 2016)

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What is Octopus Biosafety 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 %. Octopus Biosafety's annualized return on capital (ROC %) for the quarter that ended in Jun. 2016 was -4.07%.

As of today (2024-06-07), Octopus Biosafety's WACC % is 0.00%. Octopus Biosafety's ROC % is 0.00% (calculated using TTM income statement data). Octopus Biosafety earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Octopus Biosafety ROC % Historical Data

The historical data trend for Octopus Biosafety'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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Octopus Biosafety ROC % Chart

Octopus Biosafety Annual Data

Trend

Jun14

Jun15

ROC %

10.14

3.58

Octopus Biosafety Semi-Annual Data
	Jun14	Jun15	Jun16
ROC %	10.14	3.58	-4.07

Octopus Biosafety ROC % Calculation

Octopus Biosafety's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2015 is calculated as:

	ROC % (A: Jun. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2014 )	+	Invested Capital (A: Jun. 2015 ))	/ count )
=	0.011 * ( 1 - 0% )	/	( (0.345	+	0.27)	/ 2 )
=	0.011	/	0.3075
=	3.58 %

where

	Invested Capital		(A: Jun. 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	))
=	0.47	-	0.125	-	( 0	-	max(0, 0.125	-	0.243	+	0	))
=	0.345

	Invested Capital		(A: Jun. 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	))
=	0.279	-	0.009	-	( 0	-	max(0, 0.019	-	0.152	+	0	))
=	0.27

Octopus Biosafety'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: Jun. 2015 )	+	Invested Capital (Q: Jun. 2016 ))	/ count )
=	-0.018 * ( 1 - 0% )	/	( (0.27	+	0.614)	/ 2 )
=	-0.018	/	0.442
=	-4.07 %

where

	Invested Capital		(Q: Jun. 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	))
=	0.279	-	0.009	-	( 0	-	max(0, 0.019	-	0.152	+	0	))
=	0.27

	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	))
=	0.648	-	0.034	-	( 0	-	max(0, 0.109	-	0.157	+	0	))
=	0.614

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

Octopus Biosafety (STU:OCR) 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, Octopus Biosafety's WACC % is 0.00%. Octopus Biosafety's ROC % is 0.00% (calculated using TTM income statement data). Octopus Biosafety 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.

Octopus Biosafety ROC % Related Terms

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Octopus Biosafety (STU:OCR) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

29 rue Saint Pierre, Cholet, FRA, 49300

Website

http://www.octopusrobots.com

Octopus Biosafety is engaged in the design, manufacture and marketing of mobile, autonomous, intelligent and modular robots for use in Agro-food sector, Healthcare sector, Defense sector, Civil Protection sector, and Surveillance and Transport sector.

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