Greenchek Technology (Greenchek Technology) ROC % : -282.04% (As of Nov. 2010)

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What is Greenchek Technology 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 %. Greenchek Technology's annualized return on capital (ROC %) for the quarter that ended in Nov. 2010 was -282.04%.

As of today (2024-06-04), Greenchek Technology's WACC % is 0.00%. Greenchek Technology's ROC % is 0.00% (calculated using TTM income statement data). Greenchek Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Greenchek Technology ROC % Historical Data

The historical data trend for Greenchek Technology'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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Greenchek Technology ROC % Chart

Greenchek Technology Annual Data

Trend

Feb07

Feb08

Feb09

Feb10

ROC %

-800.00

-950.00

-3,385.71

-494.32

Greenchek Technology Quarterly Data
	May07	Aug07	Nov07	Feb08	May08	Aug08	Nov08	Feb09	May09	Aug09	Nov09	Feb10	May10	Aug10	Nov10
ROC %	Get a 7-Day Free Trial										-16.43	-36.44	-926.90	-619.16	-282.04

Greenchek Technology ROC % Calculation

Greenchek Technology's annualized Return on Capital (ROC %) for the fiscal year that ended in Feb. 2010 is calculated as:

	ROC % (A: Feb. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Feb. 2009 )	+	Invested Capital (A: Feb. 2010 ))	/ count )
=	-0.435 * ( 1 - % )	/	( (0	+	0.088)	/ 1 )
=	-0.435	/	0.088
=	-494.32 %

where

	Invested Capital		(A: Feb. 2009 )
=	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	))
=	0.008	-	3.532	-	( 0	-	max(0, 3.532	-	0.008	+	0	))
=	0

	Invested Capital		(A: Feb. 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	))
=	0.09	-	2.822	-	( 0.002	-	max(0, 2.907	-	0.087	+	0.002	))
=	0.088

Greenchek Technology's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2010 is calculated as:

	ROC % (Q: Nov. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2010 )	+	Invested Capital (Q: Nov. 2010 ))	/ count )
=	-0.636 * ( 1 - % )	/	( (0.204	+	0.247)	/ 2 )
=	-0.636	/	0.2255
=	-282.04 %

where

	Invested Capital		(Q: Aug. 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	))
=	0.133	-	2.96	-	( 0	-	max(0, 3.162	-	0.131	+	0	))
=	0.204

	Invested Capital		(Q: Nov. 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	))
=	0.069	-	2.898	-	( 0	-	max(0, 3.142	-	0.066	+	0	))
=	0.247

Note: The Operating Income data used here is four times the quarterly (Nov. 2010) data.

Greenchek Technology (OTCPK:GCHK) 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, Greenchek Technology's WACC % is 0.00%. Greenchek Technology's ROC % is 0.00% (calculated using TTM income statement data). Greenchek Technology 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.

Greenchek Technology ROC % Related Terms

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Greenchek Technology (Greenchek Technology) Business Description

Industry

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Traded in Other Exchanges

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Address

7901 4th St. N, Suite 6394, Saint Petersburg, FL, USA, 33702

Website

http://www.greenchektech.com

Greenchek Technology Inc is engaged in manufacturing, marketing, and distributing of products designed to reduce gas emissions by motor vehicles through the use of hydrogen technology. The company's product ERD provides Emission Reduction and Fuel enhancement Technology. It serves Heavy Goods Vehicles; Locomotives; Buses; Automobiles and Generators markets. The company's segment includes Hydrogen energy for emission reduction and Hydrogen energy based Cryptocurrency self mining.

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