Quantum Metal Exchange (Quantum Metal Exchange) ROC % : -83.51% (As of Feb. 2013)

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What is Quantum Metal Exchange 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 %. Quantum Metal Exchange's annualized return on capital (ROC %) for the quarter that ended in Feb. 2013 was -83.51%.

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

Quantum Metal Exchange ROC % Historical Data

The historical data trend for Quantum Metal Exchange'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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Quantum Metal Exchange ROC % Chart

Quantum Metal Exchange Annual Data

Trend

Aug09

Aug10

ROC %

Quantum Metal Exchange Quarterly Data
	May09	Aug09	Nov09	Feb10	May10	Aug10	Nov10	Feb11	May11	Aug11	Nov11	Feb12	Nov12	Feb13
ROC %	Get a 7-Day Free Trial									-	-	-453.33	-408.14	-83.51

Quantum Metal Exchange ROC % Calculation

Quantum Metal Exchange's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2010 is calculated as:

	ROC % (A: Aug. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2009 )	+	Invested Capital (A: Aug. 2010 ))	/ count )
=	-0.021 * ( 1 - % )	/	( (0	+	0)	/ 1 )
=	-0.021	/	0
=	%

where

	Invested Capital		(A: Aug. 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	))
=	0.046	-	0	-	( 0.046	-	max(0, 0	-	0.046	+	0.046	))
=	0

	Invested Capital		(A: 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	))
=	0.025	-	0	-	( 0.025	-	max(0, 0	-	0.025	+	0.025	))
=	0

Quantum Metal Exchange's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2013 is calculated as:

	ROC % (Q: Feb. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2012 )	+	Invested Capital (Q: Feb. 2013 ))	/ count )
=	-0.628 * ( 1 - 0% )	/	( (0.673	+	0.831)	/ 2 )
=	-0.628	/	0.752
=	-83.51 %

where

	Invested Capital		(Q: Nov. 2012 )
=	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	))
=	0.556	-	0.088	-	( 0.03	-	max(0, 0.238	-	0.033	+	0.03	))
=	0.673

	Invested Capital		(Q: Feb. 2013 )
=	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	))
=	0.546	-	1.043	-	( 0.001	-	max(0, 1.343	-	0.015	+	0.001	))
=	0.831

Note: The Operating Income data used here is four times the quarterly (Feb. 2013) data.

Quantum Metal Exchange (OTCPK:QMEI) 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, Quantum Metal Exchange's WACC % is 0.00%. Quantum Metal Exchange's ROC % is 0.00% (calculated using TTM income statement data). Quantum Metal Exchange 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.

Quantum Metal Exchange ROC % Related Terms

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Quantum Metal Exchange (Quantum Metal Exchange) Business Description

Industry

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Traded in Other Exchanges

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Address

One World Trade Center, Suite 8500, New York, NY, USA, 10007

Website

https://qmexchange.world

Quantum Metal Exchange Inc is a company with bullion based technology capacities, empowering people and businesses from upstream to downstream of the precious metal industry through technologies and cutting-edge corporate solutions. The company geographically operates in Malaysia, Singapore, Thailand, Australia, Indonesia and Nigeria.

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