Leeward Group Holdings (Leeward Group Holdings) ROC % : 28.24% (As of Mar. 2011)

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What is Leeward Group Holdings 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 %. Leeward Group Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2011 was 28.24%.

As of today (2024-05-22), Leeward Group Holdings's WACC % is 0.00%. Leeward Group Holdings's ROC % is 0.00% (calculated using TTM income statement data). Leeward Group Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Leeward Group Holdings ROC % Historical Data

The historical data trend for Leeward Group Holdings'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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Leeward Group Holdings ROC % Chart

Leeward Group Holdings Annual Data

Trend

May07

May08

May09

Dec10

ROC %

-633.33

-2,880.00

-682.35

-53.38

Leeward Group Holdings Quarterly Data
	May07	Aug07	Nov07	Feb08	May08	Aug08	Nov08	Feb09	May09	Aug09	Nov09	Feb10	Jun10	Sep10	Dec10	Mar11
ROC %	Get a 7-Day Free Trial											-91.43	-50.82	6.17	-24.46	28.24

Leeward Group Holdings ROC % Calculation

Leeward Group Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2010 is calculated as:

	ROC % (A: Dec. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2009 )	+	Invested Capital (A: Dec. 2010 ))	/ count )
=	-0.162 * ( 1 - 0% )	/	( (0.015	+	0.592)	/ 2 )
=	-0.162	/	0.3035
=	-53.38 %

where

	Invested Capital		(A: May. 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	))
=	0.003	-	0.014	-	( 0.001	-	max(0, 0.028	-	0.002	+	0.001	))
=	0.015

	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	))
=	0.667	-	0.306	-	( 0.014	-	max(0, 0.398	-	0.167	+	0.014	))
=	0.592

Leeward Group Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2011 is calculated as:

	ROC % (Q: Mar. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2010 )	+	Invested Capital (Q: Mar. 2011 ))	/ count )
=	0.16 * ( 1 - 0% )	/	( (0.592	+	0.541)	/ 2 )
=	0.16	/	0.5665
=	28.24 %

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	))
=	0.667	-	0.306	-	( 0.014	-	max(0, 0.398	-	0.167	+	0.014	))
=	0.592

	Invested Capital		(Q: Mar. 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	))
=	0.665	-	0.309	-	( 0.024	-	max(0, 0.381	-	0.196	+	0.024	))
=	0.541

Note: The Operating Income data used here is four times the quarterly (Mar. 2011) data.

Leeward Group Holdings (GREY:PCPZ) 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, Leeward Group Holdings's WACC % is 0.00%. Leeward Group Holdings's ROC % is 0.00% (calculated using TTM income statement data). Leeward Group Holdings 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.

Leeward Group Holdings ROC % Related Terms

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Leeward Group Holdings (Leeward Group Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Leeward Group Holdings Inc (GREY:PCPZ) » Definitions » ROC %

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Traded in Other Exchanges

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Address

65 S. Main Street, Suite A300, Pennington, NJ, USA, 08543

Website

Leeward Group Holdings Inc is a development stage company, through its wholly owned subsidiary, is engaged in the establishment of a customer service oriented security firm specializing in uniformed guard services and private investigations services.

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