Electro Scientific Industries (Electro Scientific Industries) ROC % : 18.44% (As of Dec. 2018)

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What is Electro Scientific Industries 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 %. Electro Scientific Industries's annualized return on capital (ROC %) for the quarter that ended in Dec. 2018 was 18.44%.

As of today (2024-05-06), Electro Scientific Industries's WACC % is 0.00%. Electro Scientific Industries's ROC % is 0.00% (calculated using TTM income statement data). Electro Scientific Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Electro Scientific Industries ROC % Historical Data

The historical data trend for Electro Scientific Industries'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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Electro Scientific Industries ROC % Chart

Electro Scientific Industries Annual Data

Trend

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

ROC %

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-20.89

-21.31

-6.72

-17.20

73.47

Electro Scientific Industries Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
ROC %	Get a 7-Day Free Trial															93.97	167.26	57.75	32.36	18.44

Electro Scientific Industries ROC % Calculation

Electro Scientific Industries's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2018 is calculated as:

	ROC % (A: Mar. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2017 )	+	Invested Capital (A: Mar. 2018 ))	/ count )
=	79.795 * ( 1 - -53.02% )	/	( (129.501	+	202.89)	/ 2 )
=	122.102309	/	166.1955
=	73.47 %

where

	Invested Capital		(A: Mar. 2017 )
=	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	))
=	224.745	-	32.859	-	( 62.385	-	max(0, 58.111	-	173.714	+	62.385	))
=	129.501

	Invested Capital		(A: Mar. 2018 )
=	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	))
=	372.988	-	46.185	-	( 123.913	-	max(0, 81.705	-	284.87	+	123.913	))
=	202.89

Electro Scientific Industries's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2018 is calculated as:

	ROC % (Q: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2018 )	+	Invested Capital (Q: Dec. 2018 ))	/ count )
=	32.612 * ( 1 - -8.17% )	/	( (185.349	+	197.266)	/ 2 )
=	35.2764004	/	191.3075
=	18.44 %

where

	Invested Capital		(Q: Sep. 2018 )
=	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	))
=	392.872	-	29.336	-	( 178.187	-	max(0, 53.64	-	304.348	+	178.187	))
=	185.349

	Invested Capital		(Q: Dec. 2018 )
=	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	))
=	408.152	-	35.676	-	( 175.21	-	max(0, 61.769	-	321.383	+	175.21	))
=	197.266

Note: The Operating Income data used here is four times the quarterly (Dec. 2018) data.

Electro Scientific Industries (NAS:ESIO) 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, Electro Scientific Industries's WACC % is 0.00%. Electro Scientific Industries's ROC % is 0.00% (calculated using TTM income statement data). Electro Scientific Industries 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 %, 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.

Electro Scientific Industries ROC % Related Terms

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Electro Scientific Industries (Electro Scientific Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Electro Scientific Industries Inc (NAS:ESIO) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Website

http://www.esi.com

Electro Scientific Industries Inc is a manufacturer of electronic components. The company operates through two segments: Component Processing and Micromachining. The Component Processing segment includes interconnect products, semiconductor products, and component products. The interconnect, semiconductor and component products are sold to manufacturers of electronic components and are used to drill, cut, trim, ablate and test and mark features for the functionality of the component. The Micromachining segment includes products that are sold to manufacturers of end devices across various industries and are used to drill, cut or mark features on a range of materials, generally on the casing or external surface of the end device.

Executives

Raymond A Link	director	C/O FORMFACTOR, INC., 7005 SOUTHFRONT ROAD, LIVERMORE CA 94551
Michael D Burger	officer: PRESIDENT AND CEO	250 TECHNOLOGY PARK, LAKE MARY FL 32746
Allen L. Muhich	officer: CHIEF FINANCIAL OFFICER	250 TECHNOLOGY PARK, LAKE MARY FL 32746
Lynne J Camp	director	714 NW 914TH TERRACE, PORTLAND OR 97229
Paul R Oldham	officer: CFO, Sr. VP of Finance	1625 SHARP POINT DRIVE, FORT COLLINS CO 80525
John K Medica	director	C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC EXPWY, BLDG C, AUSTIN TX 78759
Edward C Grady	director, officer: President & CEO
Richard J Faubert	director	14242 S CANYON DR, PHOENIX AZ 85048
Jon D Tompkins	director	17075 THORNMINT COURT, SAN DIEGO CA 92127
D3 Family Fund Lp	director, 10 percent owner	19605 NE 8TH STREET CAMAS WA 98607
Nierenberg Investment Management Co	director	19605 NE 8TH ST, CAMAS WA 98607
David Nierenberg	director, 10 percent owner	19605 NE 8TH STREET, CAMAS WA 98607
Nierenberg Investment Management Offshore Inc	10 percent owner	19605 NE 8TH STREET CAMAS WA 98607
D3 Family Canadian Fund, L.p.	10 percent owner	19605 NE 8TH STREET, CAMAS WA 98607
D3 Offshore Fund Lp	10 percent owner	19605 NE 8TH ST CAMAS WA 98607