VidWRX (TSXV:VID.H) ROC % : -276.27% (As of Sep. 2015)

View and export this data going back to 2013. Start your Free Trial

What is VidWRX 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 %. VidWRX's annualized return on capital (ROC %) for the quarter that ended in Sep. 2015 was -276.27%.

As of today (2024-06-19), VidWRX's WACC % is 0.00%. VidWRX's ROC % is 0.00% (calculated using TTM income statement data). VidWRX earns returns that do not match up to its cost of capital. It will destroy value as it grows.

VidWRX ROC % Historical Data

The historical data trend for VidWRX'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.

* Premium members only.

VidWRX ROC % Chart

VidWRX Annual Data

Trend

Dec12

Dec13

Dec14

ROC %

-55.54

-139.46

-173.31

VidWRX Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
ROC %	Get a 7-Day Free Trial									-191.27	-151.13	-158.39	-280.34	-276.27

VidWRX ROC % Calculation

VidWRX's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2014 is calculated as:

	ROC % (A: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2013 )	+	Invested Capital (A: Dec. 2014 ))	/ count )
=	-3.799 * ( 1 - 0% )	/	( (2.105	+	2.279)	/ 2 )
=	-3.799	/	2.192
=	-173.31 %

where

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	0.658	-	0.942	-	( 0.106	-	max(0, 2.812	-	0.423	+	0.106	))
=	2.105

	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	))
=	0.433	-	1.511	-	( 0.062	-	max(0, 3.554	-	0.197	+	0.062	))
=	2.279

VidWRX's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2015 is calculated as:

	ROC % (Q: Sep. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2015 )	+	Invested Capital (Q: Sep. 2015 ))	/ count )
=	-6.024 * ( 1 - 0% )	/	( (2.423	+	1.938)	/ 2 )
=	-6.024	/	2.1805
=	-276.27 %

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	))
=	0.865	-	1.546	-	( 0.27	-	max(0, 3.733	-	0.629	+	0.27	))
=	2.423

	Invested Capital		(Q: Sep. 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	))
=	1.192	-	1.857	-	( 0.611	-	max(0, 3.559	-	0.956	+	0.611	))
=	1.938

Note: The Operating Income data used here is four times the quarterly (Sep. 2015) data.

VidWRX (TSXV:VID.H) 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, VidWRX's WACC % is 0.00%. VidWRX's ROC % is 0.00% (calculated using TTM income statement data). VidWRX 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.

VidWRX ROC % Related Terms

Thank you for viewing the detailed overview of VidWRX's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

VidWRX (TSXV:VID.H) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » VidWRX Inc (TSXV:VID.H) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.vidwrx.com

VidWRX Inc is engaged in developing and operating cloud-based video content production platforms and video production series targeting the business and news markets across North America. It provides a range of resale, white-label, and on-demand video production service and products across North America to video markets, which include business video (Web services companies, digital publishers, Internet and social media marketing agencies and corporate partners), news video and content (broadcasters, newspapers, marketers and online media) and video advertisements (Internet marketing and digital agencies, video advertising platforms and ad networks).

VidWRX (TSXV:VID.H) Headlines

No Headlines