7days Music Entertainment AG (XTER:7DM1) ROCE % : -24.69% (As of Dec. 2012)

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What is 7days Music Entertainment AG 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. 7days Music Entertainment AG's annualized ROCE % for the quarter that ended in Dec. 2012 was -24.69%.

7days Music Entertainment AG ROCE % Historical Data

The historical data trend for 7days Music Entertainment AG'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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7days Music Entertainment AG ROCE % Chart

7days Music Entertainment AG Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

ROCE %

-6.40

-37.34

-27.14

-24.69

7days Music Entertainment AG Semi-Annual Data
	Dec09	Dec10	Dec11	Dec12
ROCE %	-6.40	-37.34	-27.14	-24.69

7days Music Entertainment AG ROCE % Calculation

7days Music Entertainment AG'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 )
	=	-0.883	/	( ( (6.502 - 2.28)	+	(5.626 - 2.695) )	/ 2 )
	=	-0.883	/	( (4.222	+	2.931)	/ 2 )
	=	-0.883	/	3.5765
	=	-24.69 %

7days Music Entertainment AG'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: Dec. 2011 )		(Q: Dec. 2012 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2012 )		(Q: Dec. 2011 )		(Q: Dec. 2012 )
	=	-0.883	/	( ( (6.502 - 2.28)	+	(5.626 - 2.695) )	/ 2 )
	=	-0.883	/	( ( 4.222	+	2.931 )	/ 2 )
	=	-0.883	/	3.5765
	=	-24.69 %

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

7days Music Entertainment AG (XTER:7DM1) 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.

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7days Music Entertainment AG Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » 7days Music Entertainment AG (XTER:7DM1) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.7daysmusic.de

7days Music Entertainment AG is engaged in music and entertainment industry, which includes marketing and sales of music CD, DVD, advertising, artiste management and mobile ring tones.

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