Viper Networks (Viper Networks) ROC % : -481.62% (As of Sep. 2006)

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

What is Viper Networks 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 %. Viper Networks's annualized return on capital (ROC %) for the quarter that ended in Sep. 2006 was -481.62%.

As of today (2024-06-17), Viper Networks's WACC % is 0.00%. Viper Networks's ROC % is 0.00% (calculated using TTM income statement data). Viper Networks earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Viper Networks ROC % Historical Data

The historical data trend for Viper Networks'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.

Viper Networks ROC % Chart

Viper Networks Annual Data

Trend

Dec01

Dec03

Dec04

Dec05

ROC %

-612.07

-173.22

-187.69

-163.56

Viper Networks Quarterly Data
	Dec01	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06
ROC %	Get a 7-Day Free Trial											-19.57	-193.45	-830.12	-653.23	-481.62

Viper Networks ROC % Calculation

Viper Networks's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2005 is calculated as:

	ROC % (A: Dec. 2005 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2004 )	+	Invested Capital (A: Dec. 2005 ))	/ count )
=	-2.464 * ( 1 - % )	/	( (1.89	+	1.123)	/ 2 )
=	-2.464	/	1.5065
=	-163.56 %

where

	Invested Capital		(A: Dec. 2004 )
=	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	))
=	1.327	-	0.44	-	( 0.055	-	max(0, 1.308	-	0.305	+	0.055	))
=	1.89

	Invested Capital		(A: Dec. 2005 )
=	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	))
=	0.755	-	0.678	-	( 0.037	-	max(0, 1.472	-	0.426	+	0.037	))
=	1.123

Viper Networks's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2006 is calculated as:

	ROC % (Q: Sep. 2006 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2006 )	+	Invested Capital (Q: Sep. 2006 ))	/ count )
=	-2.372 * ( 1 - % )	/	( (0.495	+	0.49)	/ 2 )
=	-2.372	/	0.4925
=	-481.62 %

where

	Invested Capital		(Q: Jun. 2006 )
=	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	))
=	0.959	-	0.67	-	( 0.08	-	max(0, 1.005	-	0.799	+	0.08	))
=	0.495

	Invested Capital		(Q: Sep. 2006 )
=	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	))
=	0.642	-	0.725	-	( 0.007	-	max(0, 1.1	-	0.527	+	0.007	))
=	0.49

Note: The Operating Income data used here is four times the quarterly (Sep. 2006) data.

Viper Networks (OTCPK:VPER) 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, Viper Networks's WACC % is 0.00%. Viper Networks's ROC % is 0.00% (calculated using TTM income statement data). Viper Networks 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.

Viper Networks ROC % Related Terms

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

Viper Networks (Viper Networks) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Viper Networks Inc (OTCPK:VPER) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

200 East Big Beaver Road, Troy, MI, USA, 48083

Website

https://www.vipernetworks.com

Viper Networks Inc is an Indian-based company that operates in LED lighting products. It is primarily involved in the manufacturing and distribution of LED lighting to provide superior turnkey LED lighting solutions for metropolitan areas (streets and highways), parking lots, and warehousing facilities anywhere. Further, it also offers intelligent lighting solutions with cameras, sensors, and wireless technologies. The company is also into providing telecom engineering services in the U.S., Middle East, and Northern Africa.

Executives

Jason Sunstein

director, officer: Vice President - Finance

350 10TH AVE., SUITE 1000, SAN DIEGO CA 92101