Arrow Resources Development (Arrow Resources Development) ROIC % : -182.54% (As of Sep. 2013)

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What is Arrow Resources Development ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Arrow Resources Development's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2013 was -182.54%.

As of today (2024-06-15), Arrow Resources Development's WACC % is 0.00%. Arrow Resources Development's ROIC % is 0.00% (calculated using TTM income statement data). Arrow Resources Development earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Arrow Resources Development ROIC % Historical Data

The historical data trend for Arrow Resources Development's ROIC % 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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Arrow Resources Development ROIC % Chart

Arrow Resources Development Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

ROIC %

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-130.60

-161.40

-164.23

-150.24

-160.82

Arrow Resources Development Quarterly Data
	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
ROIC %	Get a 7-Day Free Trial															-168.96	-175.70	-166.40	-164.82	-182.54

Competitive Comparison of Arrow Resources Development's ROIC %

For the Credit Services subindustry, Arrow Resources Development's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Arrow Resources Development's ROIC % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Arrow Resources Development's ROIC % distribution charts can be found below:

* The bar in red indicates where Arrow Resources Development's ROIC % falls into.

Arrow Resources Development ROIC % Calculation

Arrow Resources Development's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2012 is calculated as:

	ROIC % (A: Dec. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2011 )	+	Invested Capital (A: Dec. 2012 ))	/ count )
=	-6.453 * ( 1 - 0% )	/	( (3.953	+	4.072)	/ 2 )
=	-6.453	/	4.0125
=	-160.82 %

where

	Invested Capital		(A: Dec. 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	))
=	0	-	28.635	-	( 0	-	max(0, 32.588	-	0	+	0	))
=	3.953

	Invested Capital		(A: 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	-	37.129	-	( 0	-	max(0, 41.201	-	0	+	0	))
=	4.072

Arrow Resources Development's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2013 is calculated as:

	ROIC % (Q: Sep. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2013 )	+	Invested Capital (Q: Sep. 2013 ))	/ count )
=	-7.568 * ( 1 - 0% )	/	( (4.131	+	4.161)	/ 2 )
=	-7.568	/	4.146
=	-182.54 %

where

	Invested Capital		(Q: Jun. 2013 )
=	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	-	41.509	-	( 0	-	max(0, 45.64	-	0	+	0	))
=	4.131

	Invested Capital		(Q: Sep. 2013 )
=	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	-	43.907	-	( 0	-	max(0, 48.068	-	0	+	0	))
=	4.161

Note: The Operating Income data used here is four times the quarterly (Sep. 2013) data.

Arrow Resources Development (OTCPK:ARWD) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Arrow Resources Development's WACC % is 0.00%. Arrow Resources Development's ROIC % is 0.00% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

Arrow Resources Development ROIC % Related Terms

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Arrow Resources Development (Arrow Resources Development) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Arrow Resources Development Inc (OTCPK:ARWD) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

1204 Avenue U, Suite 1303, Brooklyn, NY, USA, 11229

Website

http://www.arrowrd.com

Arrow Resources Development Inc provides marketing, sales, distribution, corporate operations and corporate finance services for the commercial exploitation of natural resources. The company serves as the corporate finance and management infrastructure developer for large scale plantation/farming operations and ethanol plants in Indonesia.

Executives

Mcconnaughy John E Jr	director	JEMC CORP, 1011 HIGH RIDGE ROAD, STAMFORD CT 06905
John W Allen	director	CARNEGIE HALL TOWER 152 W. 57TH STREET, 27TH FLOOR NEW YORK NY 10019
Larry M Reid	director, officer: Exec. Vice President	8000 NORTH FEDERAL HIGHWAY, SUITE #100, BOCA RATON FL 33487

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