XCOMQ (Xtera Communications) ROCE %: -4,717.26% (As of Jun. 2016)

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What is Xtera Communications ROCE %?

Xtera Communications XCOMQ -99.00% ROCE % is -4,717.26% as of Jun. 2016.

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. Xtera Communications's annualized ROCE % for the quarter that ended in Jun. 2016 was -4,717.26%.

Xtera Communications  (OTCPK:XCOMQ) 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.

Xtera Communications ROCE % Related Terms

Xtera Communications ROCE % Historical Data

* Premium members only.

The historical data trend for Xtera Communications'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.

Xtera Communications ROCE % Chart

Xtera Communications Annual Data
Trend Sep13 Sep14 Sep15
ROCE %
-278.62 0.00 0.00

Xtera Communications Quarterly Data
Sep13 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16
ROCE % Get a 7-Day Free Trial Premium Member Only -106.70 -229.05 -211.45 -153.40 -4,717.26

Xtera Communications ROCE % Calculation

Xtera Communications's annualized ROCE % for the fiscal year that ended in Sep. 2015 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Sep. 2015 )  (A: Sep. 2014 )(A: Sep. 2015 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Sep. 2015 )  (A: Sep. 2014 )(A: Sep. 2015 )
=-12.779/( ( (34.91 - 46.974) + (39.272 - 32.815) )/ 2 )
=-12.779/( (-12.064+6.457)/ 2 )
=-12.779/-2.8035
=455.82 %

Xtera Communications's ROCE % of for the quarter that ended in Jun. 2016 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2016 )  (Q: Mar. 2016 )(Q: Jun. 2016 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2016 )  (Q: Mar. 2016 )(Q: Jun. 2016 )
=-91.68/( ( (57.074 - 43.817) + (49.463 - 58.833) )/ 2 )
=-91.68/( ( 13.257 + -9.37 )/ 2 )
=-91.68/1.9435
=-4,717.26 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2016) EBIT data.

* 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of -4,717.26% mean?
Xtera Communications (XCOMQ) has a ROCE % of -4,717.26% as of Jun. 2016.
Is Xtera Communications' ROCE % too high?
Xtera Communications' current ROCE % is -4,717.26%.
How does Xtera Communications' ROCE % compare to TAIT and AEY?
Xtera Communications' ROCE % of -4,717.26% can be compared against companies in the Hardware industry. The industry median ROCE % is 6.66. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Hardware company?
The median ROCE % among Hardware companies is 6.66, based on 2,444 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % 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 ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Hardware industry, the median ROCE % is 6.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xtera Communications's current ROCE % is -4,717.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xtera Communications stock overvalued right now?
Xtera Communications (XCOMQ) has a current ROCE % of -4,717.26%. The current ROCE % is -4,717.26%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Xtera Communications (XCOMQ), the current ROCE % is -4,717.26% as of Jun. 2016. 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.

Xtera Communications Business Description

Address 500 West Bethany Drive, Suite 100, Allen, TX, USA, 75013
Xtera Communications Inc is a provider of optical transport solutions. It sells its optical transport solutions to telecommunications service providers, content service providers, enterprises and government entities across the world to support their deployments of long-haul terrestrial and submarine optical cable networks. Its optical networking solutions are designed to offer reach and capacity for intermediate sites between end-points of long-haul networks. Its primary service offerings include services, installation and deployment services, on-site hardware replacement services, system maintenance services, extended hardware warranty services and training across a spectrum of products within the optical networking industry. The company offers hardware, software and turnkey solutions.