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News Communications (News Communications) ROIC % : -43.76% (As of Dec. 2004)


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What is News Communications 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 %. News Communications's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2004 was -43.76%.

As of today (2024-05-25), News Communications's WACC % is 0.00%. News Communications's ROIC % is 0.00% (calculated using TTM income statement data). News Communications earns returns that do not match up to its cost of capital. It will destroy value as it grows.

News Communications ROIC % Historical Data

The historical data trend for News Communications'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.

News Communications ROIC % Chart

News Communications Annual Data
Trend Nov96 Nov97 Nov98 Nov99 Dec00 Dec01 Dec02 Dec03 Dec04
ROIC %
Get a 7-Day Free Trial Premium Member Only -23.76 -55.99 -27.19 -47.83 -43.76

News Communications Semi-Annual Data
Nov96 Nov97 Nov98 Nov99 Dec00 Dec01 Dec02 Dec03 Dec04
ROIC % Get a 7-Day Free Trial Premium Member Only -23.76 -55.99 -27.19 -47.83 -43.76

Competitive Comparison of News Communications's ROIC %

For the Publishing subindustry, News Communications'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.

News Communications's ROIC % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, News Communications's ROIC % distribution charts can be found below:

* The bar in red indicates where News Communications's ROIC % falls into.


News Communications ROIC % Calculation

News Communications's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2004 is calculated as:

ROIC % (A: Dec. 2004 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2003 ) + Invested Capital (A: Dec. 2004 ))/ count )
=-0.961 * ( 1 - -4.42% )/( (2.879 + 1.707)/ 2 )
=-1.0034762/2.293
=-43.76 %

where

Invested Capital(A: Dec. 2003 )
=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))
=4.464 - 2.099 - ( 1.167 - max(0, 3.681 - 3.167+1.167))
=2.879

Invested Capital(A: Dec. 2004 )
=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))
=2.824 - 2.596 - ( 0.421 - max(0, 3.144 - 1.665+0.421))
=1.707

News Communications's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2004 is calculated as:

ROIC % (Q: Dec. 2004 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2003 ) + Invested Capital (Q: Dec. 2004 ))/ count )
=-0.961 * ( 1 - -4.42% )/( (2.879 + 1.707)/ 2 )
=-1.0034762/2.293
=-43.76 %

where

Invested Capital(Q: Dec. 2003 )
=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))
=4.464 - 2.099 - ( 1.167 - max(0, 3.681 - 3.167+1.167))
=2.879

Invested Capital(Q: Dec. 2004 )
=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))
=2.824 - 2.596 - ( 0.421 - max(0, 3.144 - 1.665+0.421))
=1.707

Note: The Operating Income data used here is one times the annual (Dec. 2004) 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.

News Communications  (OTCPK:NWCM) 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, News Communications's WACC % is 0.00%. News Communications'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.

News Communications ROIC % Related Terms

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News Communications (News Communications) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » News Communications Inc (OTCPK:NWCM) » Definitions » ROIC %
Comparable Companies
XKLS:6025 WAR:PTW HAM:MF8 MIL:GAMB XKLS:0173 MIL:BLUE XKLS:7190 HKSE:08006 BKK:SPORT SGX:YYB TSE:8072 WAR:PGM MNI ISX:LPLI WAR:EKS TSXV:FP XTER:G6P BOM:511630 BOM:532416 TSXV:LM
Traded in Other Exchanges
N/A
Address
Website
News Communications, Inc. is engaged in publishing & distribution of advertiser-supported newspapers & magazines. It publishes three newspapers, two magazines including Dans Hampton Style & Dans Hampton Sports; & a guide, Dans Hampton Style Insider Guide.
Executives
Ross Wilbur L Jr director 328 EL VEDADO ROAD, PALM BEACH FL 33480

News Communications (News Communications) Headlines

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