WCYN (West Canyon Energy) ROC %: -13.52% (As of Dec. 2012)

What is West Canyon Energy ROC %?

West Canyon Energy WCYN ROC % is -13.52% as of Dec. 2012.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. West Canyon Energy's annualized return on capital (ROC %) for the quarter that ended in Dec. 2012 was -13.52%.

As of today (2026-06-26), West Canyon Energy's WACC % is 0.00%. West Canyon Energy's ROC % is 0.00% (calculated using TTM income statement data). West Canyon Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.

West Canyon Energy (OTCPK:WCYN) 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, West Canyon Energy's WACC % is 0.00%. West Canyon Energy's ROC % is 0.00% (calculated using TTM income statement data). West Canyon Energy 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.

West Canyon Energy ROC % Related Terms

West Canyon Energy ROC % Historical Data

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The historical data trend for West Canyon Energy'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.

West Canyon Energy ROC % Chart

West Canyon Energy Annual Data

Trend

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

ROC %

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-22.34

-12.11

-7.21

-11.42

-12.86

West Canyon Energy Quarterly Data
	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12
ROC %	Get a 7-Day Free Trial															-10.49	-7.48	-15.60	-19.95	-13.52

West Canyon Energy ROC % Calculation

West Canyon Energy's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2012 is calculated as:

	ROC % (A: Jun. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2011 )	+	Invested Capital (A: Jun. 2012 ))	/ count )
=	-0.303 * ( 1 - 0% )	/	( (3.469	+	1.243)	/ 2 )
=	-0.303	/	2.356
=	-12.86 %

where

	Invested Capital		(A: Jun. 2011 )
=	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	))
=	2.577	-	0.316	-	( 0.303	-	max(0, 1.554	-	0.346	+	0.303	))
=	3.469

	Invested Capital		(A: Jun. 2012 )
=	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	))
=	0.03	-	0.286	-	( 0.03	-	max(0, 1.529	-	0.03	+	0.03	))
=	1.243

West Canyon Energy's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2012 is calculated as:

	ROC % (Q: Dec. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2012 )	+	Invested Capital (Q: Dec. 2012 ))	/ count )
=	-0.168 * ( 1 - 0% )	/	( (1.243	+	1.243)	/ 2 )
=	-0.168	/	1.243
=	-13.52 %

where

	Invested Capital		(Q: Sep. 2012 )
=	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	))
=	0.008	-	0.327	-	( 0.008	-	max(0, 1.57	-	0.008	+	0.008	))
=	1.243

	Invested Capital		(Q: Dec. 2012 )
=	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	))
=	0.002	-	0.362	-	( 0.002	-	max(0, 1.605	-	0.002	+	0.002	))
=	1.243

Note: The Operating Income data used here is four times the quarterly (Dec. 2012) data. The tax rate is limited to between 0% and 100%.

Frequently Asked Questions Learn more about ROC % →

What does a ROC % of -13.52% mean?

West Canyon Energy (WCYN) has a ROC % of -13.52% as of Dec. 2012. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on West Canyon Energy and its competitors.

Is West Canyon Energy's ROC % too high?

West Canyon Energy's current ROC % is -13.52%.

How does West Canyon Energy's ROC % compare to EUENF and OOIL?

West Canyon Energy's ROC % of -13.52% can be compared against companies in the Oil & Gas industry. The industry median ROC % is 3.63. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROC % for an Oil & Gas company?

The median ROC % among Oil & Gas companies is 3.63, based on 997 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROC % mean?

A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on West Canyon Energy and its competitors. For the Oil & Gas industry, the median ROC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. West Canyon Energy's current ROC % is -13.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is West Canyon Energy stock overvalued right now?

West Canyon Energy (WCYN) has a current ROC % of -13.52%. The current ROC % is -13.52%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROC % calculated?

ROC % is calculated from a company's financial statements. For West Canyon Energy (WCYN), the current ROC % is -13.52% as of Dec. 2012. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

West Canyon Energy Business Description

Industry Energy Oil & Gas

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Address 1001 Mayport Road, Suite 330043, Atlantic Beach, FL, USA, 32233

Website http://westcanyonenergy.com

West Canyon Energy Inc together with its subsidiaries, is engaged in the exploration and production of oil and gas properties.