Brite-Strike Tactical Illumination Products (Brite-Strike Tactical Illumination Products) ROC % : -1.62% (As of Sep. 2023)

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What is Brite-Strike Tactical Illumination Products ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Brite-Strike Tactical Illumination Products's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -1.62%.

As of today (2024-05-24), Brite-Strike Tactical Illumination Products's WACC % is -7.93%. Brite-Strike Tactical Illumination Products's ROC % is -0.43% (calculated using TTM income statement data). Brite-Strike Tactical Illumination Products generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Brite-Strike Tactical Illumination Products ROC % Historical Data

The historical data trend for Brite-Strike Tactical Illumination Products's ROC % 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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Brite-Strike Tactical Illumination Products ROC % Chart

Brite-Strike Tactical Illumination Products Annual Data

Trend

Dec96

Dec12

Dec13

Dec14

Dec15

ROC %

-14.75

-1.58

84.32

8.54

42.61

Brite-Strike Tactical Illumination Products Quarterly Data
	Mar96	Jun96	Sep96	Dec96	Mar97	Jun97	Sep97	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Dec14	Mar15	Jun15	Sep15	Dec15	Sep23
ROC %	Get a 7-Day Free Trial															167.15	-69.36	-54.81	107.78	-1.62

Brite-Strike Tactical Illumination Products ROC % Calculation

Brite-Strike Tactical Illumination Products's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	0.134 * ( 1 - 0% )	/	( (0.367	+	0.262)	/ 2 )
=	0.134	/	0.3145
=	42.61 %

where

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	0.461	-	0.009	-	( 0.085	-	max(0, 0.062	-	0.389	+	0.085	))
=	0.367

	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	))
=	0.373	-	0	-	( 0.111	-	max(0, 0.034	-	0.312	+	0.111	))
=	0.262

Brite-Strike Tactical Illumination Products's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2015 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-0.004 * ( 1 - 0% )	/	( (0.262	+	0.232)	/ 2 )
=	-0.004	/	0.247
=	-1.62 %

where

	Invested Capital		(Q: 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	))
=	0.373	-	0	-	( 0.111	-	max(0, 0.034	-	0.312	+	0.111	))
=	0.262

	Invested Capital		(Q: Sep. 2023 )
=	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	))
=	0.12	-	0	-	( 0.014	-	max(0, 0.177	-	0.065	+	0.014	))
=	0.232

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

Brite-Strike Tactical Illumination Products (OTCPK:BSTK) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Brite-Strike Tactical Illumination Products's WACC % is -7.93%. Brite-Strike Tactical Illumination Products's ROC % is -0.43% (calculated using TTM income statement data). Brite-Strike Tactical Illumination Products generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Be Aware

Like ROE % and ROA %, ROC % 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.

Brite-Strike Tactical Illumination Products ROC % Related Terms

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Brite-Strike Tactical Illumination Products (Brite-Strike Tactical Illumination Products) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Brite-Strike Tactical Illumination Products Inc (OTCPK:BSTK) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

1145 Franklin Street, Duxbury, MA, USA, 02332

Website

https://www.brite-strike.com

Brite-Strike Tactical Illumination Products Inc is a United States-based company engaged in designing and manufacturing tactical flashlights with Digital Power Management chip technology. The company's products are used as a non-lethal means of defense for law enforcement, the military, and safety-minded citizens. Its products are used in the police and military industry, outdoor adventures, water sports, fishing, flashlights, hunting, and citizen safety, and also provides related accessories.

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