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Meade Instruments (FRA:ME1N) ROIC % : -56.73% (As of May. 2013)


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What is Meade Instruments 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 %. Meade Instruments's annualized return on invested capital (ROIC %) for the quarter that ended in May. 2013 was -56.73%.

As of today (2024-06-10), Meade Instruments's WACC % is 0.00%. Meade Instruments's ROIC % is 0.00% (calculated using TTM income statement data). Meade Instruments earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Meade Instruments ROIC % Historical Data

The historical data trend for Meade Instruments'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.

* Premium members only.

Meade Instruments ROIC % Chart

Meade Instruments Annual Data
Trend Feb04 Feb05 Feb06 Feb07 Feb08 Feb09 Feb10 Feb11 Feb12 Feb13
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -50.13 -42.05 -20.32 -22.67 -55.23

Meade Instruments Quarterly Data
Aug08 Nov08 Feb09 May09 Aug09 Nov09 Feb10 May10 Aug10 Nov10 Feb11 May11 Aug11 Nov11 Feb12 May12 Aug12 Nov12 Feb13 May13
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -47.18 -52.90 -64.18 -48.80 -56.73

Competitive Comparison of Meade Instruments's ROIC %

For the Scientific & Technical Instruments subindustry, Meade Instruments'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.


Meade Instruments's ROIC % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Meade Instruments's ROIC % distribution charts can be found below:

* The bar in red indicates where Meade Instruments's ROIC % falls into.



Meade Instruments ROIC % Calculation

Meade Instruments's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Feb. 2013 is calculated as:

ROIC % (A: Feb. 2013 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Feb. 2012 ) + Invested Capital (A: Feb. 2013 ))/ count )
=-2.719 * ( 1 - -0.22% )/( (4.76 + 5.107)/ 2 )
=-2.7249818/4.9335
=-55.23 %

where

Meade Instruments's annualized Return on Invested Capital (ROIC %) for the quarter that ended in May. 2013 is calculated as:

ROIC % (Q: May. 2013 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2013 ) + Invested Capital (Q: May. 2013 ))/ count )
=-2.796 * ( 1 - 0% )/( (5.107 + 4.751)/ 2 )
=-2.796/4.929
=-56.73 %

where

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


Meade Instruments  (FRA:ME1N) 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, Meade Instruments's WACC % is 0.00%. Meade Instruments'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.


Meade Instruments ROIC % Related Terms

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Meade Instruments (FRA:ME1N) Business Description

Traded in Other Exchanges
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Address
Meade Instruments Corporation is a Delaware Corporation. The Company is a consumer products company that designs, manufactures, imports and distributes telescopes, telescope accessories, binoculars, spotting scopes, and other consumer optical products.. The Company's brands include Meade and Coronado. They are associated with the amateur astronomy, consumer optical and sporting goods markets. Products such as the LX200 series of telescopes that combine the state-of-the-art LX200 with the precision of Advanced Coma Free (ACF) optics; the LX90GPS that brings GPS capabilities to a moderately priced Schmidt-Cassegrain telescope; LS, the newest addition of fully computerized telescopes using 'Lightswitch' technology, which provides a revolutionary self-alignment routine, allowing users with no astronomy experience to enjoy a multi-media guided-tour of the night sky; also, the new LT series, which is its value platform, using the same high-quality mechanics of the LS, but the Deep Sky Imager series of high-performance charge-coupled device (CCD) cameras that have advanced astro-imaging to near point-and-shoot simplicity,. It competes in the United States and Canada with SW Technology Corporation, and Bushnell Performance Optics, Inc., and to a lesser extent, with other smaller companies which service niche markets.

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