Interplay Entertainment (Interplay Entertainment) ROIC % : -179.79% (As of Mar. 2011)

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What is Interplay Entertainment 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 %. Interplay Entertainment's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2011 was -179.79%.

As of today (2024-06-19), Interplay Entertainment's WACC % is 0.00%. Interplay Entertainment's ROIC % is 0.00% (calculated using TTM income statement data). Interplay Entertainment earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Interplay Entertainment ROIC % Historical Data

The historical data trend for Interplay Entertainment'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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Interplay Entertainment ROIC % Chart

Interplay Entertainment Annual Data

Trend

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

ROIC %

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-59.47

179.28

-24.66

-109.13

-89.32

Interplay Entertainment Quarterly Data
	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11
ROIC %	Get a 7-Day Free Trial															-91.79	-89.56	-86.63	-109.05	-179.79

Competitive Comparison of Interplay Entertainment's ROIC %

For the Software - Application subindustry, Interplay Entertainment'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.

Interplay Entertainment's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, Interplay Entertainment's ROIC % distribution charts can be found below:

* The bar in red indicates where Interplay Entertainment's ROIC % falls into.

Interplay Entertainment ROIC % Calculation

Interplay Entertainment's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2010 is calculated as:

	ROIC % (A: Dec. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2009 )	+	Invested Capital (A: Dec. 2010 ))	/ count )
=	-0.941 * ( 1 - 0% )	/	( (1.293	+	0.814)	/ 2 )
=	-0.941	/	1.0535
=	-89.32 %

where

	Invested Capital		(A: Dec. 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	))
=	0.197	-	1.745	-	( 0.001	-	max(0, 2.997	-	0.156	+	0.001	))
=	1.293

	Invested Capital		(A: Dec. 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	))
=	0.291	-	2.354	-	( 0.003	-	max(0, 3.134	-	0.257	+	0.003	))
=	0.814

Interplay Entertainment's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2011 is calculated as:

	ROIC % (Q: Mar. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2010 )	+	Invested Capital (Q: Mar. 2011 ))	/ count )
=	-1.432 * ( 1 - 0% )	/	( (0.814	+	0.779)	/ 2 )
=	-1.432	/	0.7965
=	-179.79 %

where

	Invested Capital		(Q: Dec. 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	))
=	0.291	-	2.354	-	( 0.003	-	max(0, 3.134	-	0.257	+	0.003	))
=	0.814

	Invested Capital		(Q: Mar. 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	))
=	0.219	-	2.667	-	( 0.004	-	max(0, 3.416	-	0.189	+	0.004	))
=	0.779

Note: The Operating Income data used here is four times the quarterly (Mar. 2011) data.

Interplay Entertainment (OTCPK:IPLY) 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, Interplay Entertainment's WACC % is 0.00%. Interplay Entertainment'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.

Interplay Entertainment ROIC % Related Terms

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