MCZAF (Mad Catz Interactive) ROIC %: -45.63% (As of Dec. 2016)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Mad Catz Interactive ROIC %?

Mad Catz Interactive MCZAF -3.33% ROIC % is -45.63% as of Dec. 2016.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Mad Catz Interactive's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2016 was -45.63%.

As of today (2026-07-20), Mad Catz Interactive's WACC % is 0.00%. Mad Catz Interactive's ROIC % is 0.00% (calculated using TTM income statement data). Mad Catz Interactive earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Mad Catz Interactive  (OTCPK:MCZAF) 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, Mad Catz Interactive's WACC % is 0.00%. Mad Catz Interactive's ROIC % is 0.00% (calculated using TTM income statement data). Mad Catz Interactive 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.


Mad Catz Interactive ROIC % Related Terms


Mad Catz Interactive ROIC % Historical Data

* Premium members only.

The historical data trend for Mad Catz Interactive'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.

Mad Catz Interactive ROIC % Chart

Mad Catz Interactive Annual Data
Trend Mar07 Mar08 Mar09 Mar10 Mar11 Mar12 Mar13 Mar14 Mar15 Mar16
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.36 5.34 -26.26 0.00 -23.50

Mad Catz Interactive 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 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 13.02 -55.13 -66.37 -53.76 -45.63

MCZAF vs ECRP: ROIC % Comparison

For the Computer Hardware subindustry, Mad Catz Interactive'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.


Mad Catz Interactive ROIC % vs Hardware Industry

For the Hardware industry and Technology sector, Mad Catz Interactive's ROIC % distribution charts can be found below:

* The bar in red indicates where Mad Catz Interactive's ROIC % falls into.



Mad Catz Interactive ROIC % Calculation

Mad Catz Interactive's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2016 is calculated as:

ROIC % (A: Mar. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2015 ) + Invested Capital (A: Mar. 2016 ))/ count )
=-6.373 * ( 1 - 0% )/( (22.918 + 31.32)/ 2 )
=-6.373/27.119
=-23.50 %

where

Mad Catz Interactive'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 )
=-11.508 * ( 1 - 0% )/( (23.464 + 26.971)/ 2 )
=-11.508/25.2175
=-45.63 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2016) 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 -45.63% mean?
Mad Catz Interactive (MCZAF) has a ROIC % of -45.63% as of Dec. 2016. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Mad Catz Interactive and its competitors.
Is Mad Catz Interactive's ROIC % too high?
Mad Catz Interactive's current ROIC % is -45.63%.
How does Mad Catz Interactive's ROIC % compare to ECRP?
Mad Catz Interactive's ROIC % of -45.63% can be compared against companies in the Hardware industry. The industry median ROIC % is 4.14. 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 Hardware company?
The median ROIC % among Hardware companies is 4.14, based on 2,449 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 Mad Catz Interactive and its competitors. For the Hardware industry, the median ROIC % is 4.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mad Catz Interactive's current ROIC % is -45.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mad Catz Interactive stock overvalued right now?
Mad Catz Interactive (MCZAF) has a current ROIC % of -45.63%. The current ROIC % is -45.63%. 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 Mad Catz Interactive (MCZAF), the current ROIC % is -45.63% as of Dec. 2016. 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.

Mad Catz Interactive Business Description

Address 181 Bay Street, Suite 4400, Toronto, ON, CAN, M5J 2T3
Mad Catz Interactive Inc is a Canadian company which is engaged in designing, manufacturing, marketing and distributing interactive entertainment products marketed under Mad Catz (gaming), Tritton (audio), and Saitek (simulation) brands. The company's products include headsets, mice, keyboards, controllers, specialty controllers, and other accessories. It caters to gamers and simulation enthusiast across multiple platforms including in-home gaming consoles, handheld gaming consoles, PC (Personal Computers) and Mac computers, smartphones, tablets and other smart devices. The company distributes its products through various retailers around the globe. Mad Catz derives the majority of its revenue from Americas.