Fusion Interactive (Fusion Interactive) ROC % : -480.48% (As of Sep. 2007)

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What is Fusion Interactive 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 %. Fusion Interactive's annualized return on capital (ROC %) for the quarter that ended in Sep. 2007 was -480.48%.

As of today (2024-06-08), Fusion Interactive's WACC % is 0.00%. Fusion Interactive's ROC % is 0.00% (calculated using TTM income statement data). Fusion Interactive earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Fusion Interactive ROC % Historical Data

The historical data trend for Fusion Interactive'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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Fusion Interactive ROC % Chart

Fusion Interactive Annual Data

Trend

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

ROC %

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-678.87

-511.11

-630.56

-189.17

-356.12

Fusion Interactive Quarterly Data
	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07
ROC %	Get a 7-Day Free Trial															-561.47	-685.02	-2,230.13	-231.34	-480.48

Fusion Interactive ROC % Calculation

Fusion Interactive's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2006 is calculated as:

	ROC % (A: Dec. 2006 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2005 )	+	Invested Capital (A: Dec. 2006 ))	/ count )
=	-1.672 * ( 1 - % )	/	( (0.66	+	0.279)	/ 2 )
=	-1.672	/	0.4695
=	-356.12 %

where

	Invested Capital		(A: Dec. 2005 )
=	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	))
=	0.209	-	0.421	-	( 0.001	-	max(0, 0.928	-	0.056	+	0.001	))
=	0.66

	Invested Capital		(A: Dec. 2006 )
=	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	))
=	0.364	-	0.337	-	( 0.01	-	max(0, 0.406	-	0.154	+	0.01	))
=	0.279

Fusion Interactive's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2007 is calculated as:

	ROC % (Q: Sep. 2007 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2007 )	+	Invested Capital (Q: Sep. 2007 ))	/ count )
=	-2.388 * ( 1 - % )	/	( (0.264	+	0.73)	/ 2 )
=	-2.388	/	0.497
=	-480.48 %

where

	Invested Capital		(Q: Jun. 2007 )
=	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	))
=	0.295	-	0.462	-	( 0.002	-	max(0, 0.534	-	0.103	+	0.002	))
=	0.264

	Invested Capital		(Q: Sep. 2007 )
=	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	))
=	0.312	-	0.459	-	( 0.008	-	max(0, 1.002	-	0.125	+	0.008	))
=	0.73

Note: The Operating Income data used here is four times the quarterly (Sep. 2007) data.

Fusion Interactive (OTCPK:FUIG) 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, Fusion Interactive's WACC % is 0.00%. Fusion Interactive's ROC % is 0.00% (calculated using TTM income statement data). Fusion 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 %, 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.

Fusion Interactive ROC % Related Terms

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Fusion Interactive (Fusion Interactive) Business Description

Industry

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Address

4380 North East 11th Avenue, Suite 1011, Oakland Park, FL, USA, 33334

Website

https://www.fusioninteractive.info

Fusion Interactive Corp is a unified communication service provider. The services of the company include mobile messaging, call management, VoIP, visual voicemail, audio, and video conferencing, automated response and notification, Desktop-as-a-Service, and storage, all hosted in a distributed, fault-tolerant, performant, flexible cloud environment, managed through an intuitive interface with automated provisioning and easy user management. The company also provides critical services that free a business from needing to deploy or maintain its infrastructure and allow for easy access to corporate resources from anywhere, at any time, on any device.

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