Legend Oil & Gas (Legend Oil & Gas) ROIC % : -150.40% (As of Dec. 2016)

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What is Legend Oil & Gas 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 %. Legend Oil & Gas's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2016 was -150.40%.

As of today (2024-06-20), Legend Oil & Gas's WACC % is 0.00%. Legend Oil & Gas's ROIC % is 0.00% (calculated using TTM income statement data). Legend Oil & Gas earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Legend Oil & Gas ROIC % Historical Data

The historical data trend for Legend Oil & Gas'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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Legend Oil & Gas ROIC % Chart

Legend Oil & Gas Annual Data

Trend

Dec04

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROIC %

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-20.12

-18.73

-46.07

-63.93

-91.96

Legend Oil & Gas Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
ROIC %	Get a 7-Day Free Trial															-18.83	-50.73	-79.28	-91.19	-150.40

Competitive Comparison of Legend Oil & Gas's ROIC %

For the Oil & Gas Midstream subindustry, Legend Oil & Gas'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.

Legend Oil & Gas's ROIC % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Legend Oil & Gas's ROIC % distribution charts can be found below:

* The bar in red indicates where Legend Oil & Gas's ROIC % falls into.

Legend Oil & Gas ROIC % Calculation

Legend Oil & Gas's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2016 is calculated as:

	ROIC % (A: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2015 )	+	Invested Capital (A: Dec. 2016 ))	/ count )
=	-4.041 * ( 1 - 0% )	/	( (5.253	+	3.536)	/ 2 )
=	-4.041	/	4.3945
=	-91.96 %

where

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	4.995	-	1.18	-	( 0.464	-	max(0, 2.504	-	1.066	+	0.464	))
=	5.253

	Invested Capital		(A: Dec. 2016 )
=	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	))
=	3.723	-	0.937	-	( 0.161	-	max(0, 1.632	-	0.882	+	0.161	))
=	3.536

Legend Oil & Gas's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2016 is calculated as:

	ROIC % (Q: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2016 )	+	Invested Capital (Q: Dec. 2016 ))	/ count )
=	-5.324 * ( 1 - 0% )	/	( (3.544	+	3.536)	/ 2 )
=	-5.324	/	3.54
=	-150.40 %

where

	Invested Capital		(Q: Sep. 2016 )
=	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	))
=	4.751	-	0.904	-	( 0.84	-	max(0, 1.549	-	1.852	+	0.84	))
=	3.544

	Invested Capital		(Q: Dec. 2016 )
=	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	))
=	3.723	-	0.937	-	( 0.161	-	max(0, 1.632	-	0.882	+	0.161	))
=	3.536

Note: The Operating Income data used here is four times the quarterly (Dec. 2016) data.

Legend Oil & Gas (OTCPK:LOGL) 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, Legend Oil & Gas's WACC % is 0.00%. Legend Oil & Gas'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.

Legend Oil & Gas ROIC % Related Terms

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Legend Oil & Gas (Legend Oil & Gas) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Legend Oil & Gas Ltd (OTCPK:LOGL) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

555 North Point Center East, Suite 410, Alpharetta, GA, USA, 30022

Website

http://www.maxxonenergy.com

Legend Oil & Gas Ltd is a crude oil hauling and trucking company. The company's principal operations are in the Bakken region of North Dakota and the Permian Basin in Texas and New Mexico. It focuses is to grow its core business and expand its crude oil hauling operations into other basins throughout the United States. The company's only segment, as the oil and gas.

Executives

Neal P Kaufman	director	14315 WEST HARDY ROAD, HOUSTON TX 77060
Hillair Capital Investments Lp	10 percent owner	345 LORTON AVENUE, SUITE 303, BURLINGAME CA 94010
Sean M Mcavoy	10 percent owner	345 LORTON AVENUE, SUITE 303, BURLINGAME CA 94010
Hillair Capital Management Llc	10 percent owner	345 LORTON AVENUE, SUITE 303, BURLINGAME CA 94010
James Vandeberg	10 percent owner	10710 NE 10TH STREET #1307, BELLEVUE WA 98004
Steve S Sinohui	director, 10 percent owner	2789 S. LAMAR STREET DENVER CO 80227

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