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Alabama Aircraft Industries (Alabama Aircraft Industries) ROIC % : 3.32% (As of Dec. 2008)


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What is Alabama Aircraft Industries ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Alabama Aircraft Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2008 was 3.32%.

As of today (2024-06-11), Alabama Aircraft Industries's WACC % is 0.00%. Alabama Aircraft Industries's ROIC % is 0.00% (calculated using TTM income statement data). Alabama Aircraft Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Alabama Aircraft Industries ROIC % Historical Data

The historical data trend for Alabama Aircraft Industries's ROIC % 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.

* Premium members only.

Alabama Aircraft Industries ROIC % Chart

Alabama Aircraft Industries Annual Data
Trend Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.25 -6.41 -1.60 -21.32 -1.61

Alabama Aircraft Industries Quarterly Data
Mar04 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -13.04 13.94 -13.75 -17.06 3.32

Competitive Comparison of Alabama Aircraft Industries's ROIC %

For the Aerospace & Defense subindustry, Alabama Aircraft Industries's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Alabama Aircraft Industries's ROIC % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Alabama Aircraft Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Alabama Aircraft Industries's ROIC % falls into.



Alabama Aircraft Industries ROIC % Calculation

Alabama Aircraft Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2008 is calculated as:

ROIC % (A: Dec. 2008 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2007 ) + Invested Capital (A: Dec. 2008 ))/ count )
=-0.471 * ( 1 - 12.71% )/( (29.45 + 21.673)/ 2 )
=-0.4111359/25.5615
=-1.61 %

where

Alabama Aircraft Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2008 is calculated as:

ROIC % (Q: Dec. 2008 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2008 ) + Invested Capital (Q: Dec. 2008 ))/ count )
=0.332 * ( 1 - -119.09% )/( (22.201 + 21.673)/ 2 )
=0.7273788/21.937
=3.32 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2008) data.

* 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.


Alabama Aircraft Industries  (OTCPK:AAIIQ) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Alabama Aircraft Industries's WACC % is 0.00%. Alabama Aircraft Industries's ROIC % is 0.00% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


Alabama Aircraft Industries ROIC % Related Terms

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Alabama Aircraft Industries (Alabama Aircraft Industries) Business Description

Traded in Other Exchanges
N/A
Address
1943 North 50th Street, Birmingham, AL, USA, 35212
Alabama Aircraft Industries Inc is an aerospace & defense company, which provides aircraft maintenance & modification services to the U.S. Government, including complete airframe inspection, maintenance, repair & custom airframe design & modification.
Executives
Hugh Steven Wilson director C/O TENNENBAUM CAPITAL PARTNERS, LLC, 2951 28TH STREET, SUITE 1000, SANTA MONICA CA 90405
Michael E Tennenbaum director C/O TENNENBAUM CAPITAL PARTNERS, LLC, 2951 28TH STREET, SUITE 1000, SANTA MONICA CA 90405
Robert Eugene Joyal director 352 WARDNER ROAD, WEST WINDSOR VT 05089
Tennenbaum Capital Partners Llc 10 percent owner 2951 28TH STREET, SUITE 1000, SANTA MONICA CA 90405
Mark Holdsworth director 140 S. LAKE AVE., STE. 304, PASADENA CA 91101
Tennenbaum & Co Llc 10 percent owner 1999 AVENUE OF THE STARS, LOS ANGELES CA 90067-6100
Peter Thiel other: See Footnote (1) 9200 SUNSET BOULEVARD, SUITE 1110, WEST HOLLYWOOD CA 90069

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