World Of Wireless International Telecom (World Of Wireless International Telecom) ROIC % : -607.47% (As of Dec. 2011)

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What is World Of Wireless International Telecom 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 %. World Of Wireless International Telecom's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2011 was -607.47%.

As of today (2024-06-13), World Of Wireless International Telecom's WACC % is 0.00%. World Of Wireless International Telecom's ROIC % is 0.00% (calculated using TTM income statement data). World Of Wireless International Telecom earns returns that do not match up to its cost of capital. It will destroy value as it grows.

World Of Wireless International Telecom ROIC % Historical Data

The historical data trend for World Of Wireless International Telecom'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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World Of Wireless International Telecom ROIC % Chart

World Of Wireless International Telecom Annual Data

Trend

Dec10

Dec11

ROIC %

-607.47

World Of Wireless International Telecom Semi-Annual Data
	Dec10	Dec11
ROIC %	-	-607.47

Competitive Comparison of World Of Wireless International Telecom's ROIC %

For the Telecom Services subindustry, World Of Wireless International Telecom'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.

World Of Wireless International Telecom's ROIC % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, World Of Wireless International Telecom's ROIC % distribution charts can be found below:

* The bar in red indicates where World Of Wireless International Telecom's ROIC % falls into.

World Of Wireless International Telecom ROIC % Calculation

World Of Wireless International Telecom's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2011 is calculated as:

	ROIC % (A: Dec. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2010 )	+	Invested Capital (A: Dec. 2011 ))	/ count )
=	-1.139 * ( 1 - 0% )	/	( (0.159	+	0.216)	/ 2 )
=	-1.139	/	0.1875
=	-607.47 %

where

	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	))
=	0.033	-	0	-	( 0	-	max(0, 0.126	-	0	+	0	))
=	0.159

	Invested Capital		(A: Dec. 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	))
=	0.03	-	0.733	-	( 0	-	max(0, 0.925	-	0.006	+	0	))
=	0.216

World Of Wireless International Telecom's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2011 is calculated as:

	ROIC % (Q: Dec. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2010 )	+	Invested Capital (Q: Dec. 2011 ))	/ count )
=	-1.139 * ( 1 - 0% )	/	( (0.159	+	0.216)	/ 2 )
=	-1.139	/	0.1875
=	-607.47 %

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	))
=	0.033	-	0	-	( 0	-	max(0, 0.126	-	0	+	0	))
=	0.159

	Invested Capital		(Q: Dec. 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	))
=	0.03	-	0.733	-	( 0	-	max(0, 0.925	-	0.006	+	0	))
=	0.216

Note: The Operating Income data used here is one times the annual (Dec. 2011) data.

World Of Wireless International Telecom (OTCPK:WWII) 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, World Of Wireless International Telecom's WACC % is 0.00%. World Of Wireless International Telecom'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.

World Of Wireless International Telecom ROIC % Related Terms

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World Of Wireless International Telecom (World Of Wireless International Telecom) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » World Of Wireless International Telecom Inc (OTCPK:WWII) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

65 Enterprise, Aliso Viejo, CA, USA, 92656

Website

https://www.wowitel.com

World Of Wireless International Telecom Inc engages in the wireless communications industry. The company focuses on prepaid unlimited wifi softphone services for voice, text, data and streaming with or without dedicated connection to a Hot Spot or wifi network, development, and release of new applications for broad market appeal globally after the proprietary app is released, the company offers white-label services for third-party networks to build their own applications and operate through the company's network available, municipal wireless implementation in the United States.

World Of Wireless International Telecom (World Of Wireless International Telecom) Headlines

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