BMSPF (Biomass Secure Power) ROIC %: -25,700.00% (As of Jun. 2010)


What is Biomass Secure Power ROIC %?

Biomass Secure Power BMSPF ROIC % is -25,700.00% as of Jun. 2010.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Biomass Secure Power's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2010 was -25,700.00%.

As of today (2026-07-04), Biomass Secure Power's WACC % is 0.00%. Biomass Secure Power's ROIC % is 0.00% (calculated using TTM income statement data). Biomass Secure Power earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Biomass Secure Power  (OTCPK:BMSPF) 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, Biomass Secure Power's WACC % is 0.00%. Biomass Secure Power's ROIC % is 0.00% (calculated using TTM income statement data). Biomass Secure Power 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 %, 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.

Biomass Secure Power ROIC % Related Terms

Biomass Secure Power ROIC % Historical Data

* Premium members only.

The historical data trend for Biomass Secure Power'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.

Biomass Secure Power ROIC % Chart

Biomass Secure Power Annual Data
Trend Jun04 Jun05 Jun09 Jun10
ROIC %
-290.91 -288.89 -244.68 -25,700.00

Biomass Secure Power Semi-Annual Data
Jun04 Jun05 Jun09 Jun10
ROIC % -290.91 -288.89 -244.68 -25,700.00

Biomass Secure Power ROIC % Competitor Comparison

For the Lumber & Wood Production subindustry, Biomass Secure Power'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.

Biomass Secure Power ROIC % vs Forest Products Industry

For the Forest Products industry and Basic Materials sector, Biomass Secure Power's ROIC % distribution charts can be found below:

* The bar in red indicates where Biomass Secure Power's ROIC % falls into.


Biomass Secure Power ROIC % Calculation

Biomass Secure Power's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2010 is calculated as:

ROIC % (A: Jun. 2010 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2009 ) + Invested Capital (A: Jun. 2010 ))/ count )
=-0.257 * ( 1 - 0% )/( (0 + 0.001)/ 2 )
=-0.257/0.0005
=-51,400.00 %

where

Invested Capital(A: Jun. 2009 )
=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))
=0.063 - 0.151 - ( 0 - max(0, 0.151 - 0.063+0))
=0

Invested Capital(A: Jun. 2010 )
=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))
=0.064 - 0.409 - ( 0 - max(0, 0.409 - 0.063+0))
=0.001

Biomass Secure Power's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2010 is calculated as:

ROIC % (Q: Jun. 2010 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2009 ) + Invested Capital (Q: Jun. 2010 ))/ count )
=-0.257 * ( 1 - 0% )/( (0 + 0.001)/ 2 )
=-0.257/0.0005
=-51,400.00 %

where

Invested Capital(Q: Jun. 2009 )
=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))
=0.063 - 0.151 - ( 0 - max(0, 0.151 - 0.063+0))
=0

Invested Capital(Q: Jun. 2010 )
=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))
=0.064 - 0.409 - ( 0 - max(0, 0.409 - 0.063+0))
=0.001

Note: The Operating Income data used here is one times the annual (Jun. 2010) data. The tax rate is limited to between 0% and 100%.

* 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 ROIC % →
What does a ROIC % of -25,700.00% mean?
Biomass Secure Power (BMSPF) has a ROIC % of -25,700.00% as of Jun. 2010. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Biomass Secure Power and its competitors.
Is Biomass Secure Power's ROIC % too high?
Biomass Secure Power's current ROIC % is -25,700.00%.
How does Biomass Secure Power's ROIC % compare to competitors?
Biomass Secure Power's ROIC % of -25,700.00% can be compared against companies in the Forest Products industry. The industry median ROIC % is 1.51. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Forest Products company?
The median ROIC % among Forest Products companies is 1.51, based on 277 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Biomass Secure Power and its competitors. For the Forest Products industry, the median ROIC % is 1.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Biomass Secure Power's current ROIC % is -25,700.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Biomass Secure Power stock overvalued right now?
Biomass Secure Power (BMSPF) has a current ROIC % of -25,700.00%. The current ROIC % is -25,700.00%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Biomass Secure Power (BMSPF), the current ROIC % is -25,700.00% as of Jun. 2010. 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.

Biomass Secure Power Business Description

Address 125 8590 Sunrise Drive, Chilliwack, BC, CAN, V2R 3Z4
Biomass Secure Power Inc is engaged in the development of a wood pellet plant in Louisiana. The company has two patents that allow it to produce Biocoal with up to 30% more energy per tonne than whitewood pellets. The second patent concerns the briquetting of torrefied chips at high temperature maintaining the adhesive properties of the natural lignin and furans present in the wood fiber. It has developed two revenue streams, Biocoal supply and high carbon product which provides a byproduct that can be used for SAF.