RAM Active Media (LSE:RAM) ROCE % : -652.19% (As of Dec. 2012)

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What is RAM Active Media ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. RAM Active Media's annualized ROCE % for the quarter that ended in Dec. 2012 was -652.19%.

RAM Active Media ROCE % Historical Data

The historical data trend for RAM Active Media's ROCE % 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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RAM Active Media ROCE % Chart

RAM Active Media Annual Data

Trend

May03

May04

May05

May06

May07

May08

Dec09

Dec10

Dec11

Dec12

ROCE %

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-165.28

-205.28

-838.21

-1,667.66

RAM Active Media Semi-Annual Data
	Nov02	May03	Nov03	May04	Nov04	May05	Nov05	May06	Nov06	May07	Nov07	May08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12
ROCE %	Get a 7-Day Free Trial															-322.37	-121.71	-278.87	-149.23	-652.19

RAM Active Media ROCE % Calculation

RAM Active Media's annualized ROCE % for the fiscal year that ended in Dec. 2012 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2012 )		(A: Dec. 2011 )		(A: Dec. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2012 )		(A: Dec. 2011 )		(A: Dec. 2012 )
	=	-2.785	/	( ( (2.512 - 1.926)	+	(2.47 - 2.722) )	/ 2 )
	=	-2.785	/	( (0.586	+	-0.252)	/ 2 )
	=	-2.785	/	0.167
	=	-1,667.66 %

RAM Active Media's ROCE % of for the quarter that ended in Dec. 2012 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2012 )		(Q: Jun. 2012 )		(Q: Dec. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2012 )		(Q: Jun. 2012 )		(Q: Dec. 2012 )
	=	-4.024	/	( ( (3.368 - 1.882)	+	(2.47 - 2.722) )	/ 2 )
	=	-4.024	/	( ( 1.486	+	-0.252 )	/ 2 )
	=	-4.024	/	0.617
	=	-652.19 %

(1) Note: The EBIT data used here is two times the semi-annual (Dec. 2012) EBIT data.

RAM Active Media (LSE:RAM) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

RAM Active Media ROCE % Related Terms

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RAM Active Media (LSE:RAM) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » RAM Active Media PLC (LSE:RAM) » Definitions » ROCE %

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Address

Website

http://www.raminvestmentgroup.co.uk

RAM Active Media PLC is incorporated and domiciled in United Kingdom. The Company and its subsidiaries operate in the passenger information and communications systems and Digital out of Home advertising markets. It focuses on digital communication opportunities within the railway and the shopping mall sector within the UK.