Top Shelf Brands Holdings (Top Shelf Brands Holdings) ROIC % : -26.79% (As of Sep. 2011)

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What is Top Shelf Brands Holdings 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 %. Top Shelf Brands Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2011 was -26.79%.

As of today (2024-05-24), Top Shelf Brands Holdings's WACC % is 0.00%. Top Shelf Brands Holdings's ROIC % is 0.00% (calculated using TTM income statement data). Top Shelf Brands Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Top Shelf Brands Holdings ROIC % Historical Data

The historical data trend for Top Shelf Brands Holdings'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.

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Top Shelf Brands Holdings ROIC % Chart

Top Shelf Brands Holdings Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

ROIC %

-550.00

-3.45

-18.89

-18.93

-5.38

Top Shelf Brands Holdings Quarterly Data
	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11
ROIC %	Get a 7-Day Free Trial															-10.43	35.35	-15.51	-32.01	-26.79

Competitive Comparison of Top Shelf Brands Holdings's ROIC %

For the Beverages - Wineries & Distilleries subindustry, Top Shelf Brands Holdings'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.

Top Shelf Brands Holdings's ROIC % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Top Shelf Brands Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Top Shelf Brands Holdings's ROIC % falls into.

Top Shelf Brands Holdings ROIC % Calculation

Top Shelf Brands Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2010 is calculated as:

	ROIC % (A: Dec. 2010 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2009 )	+	Invested Capital (A: Dec. 2010 ))	/ count )
=	-0.383 * ( 1 - 0.72% )	/	( (7.463	+	6.665)	/ 2 )
=	-0.3802424	/	7.064
=	-5.38 %

where

	Invested Capital		(A: Dec. 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	))
=	3.386	-	1.001	-	( 0.019	-	max(0, 5.41	-	0.332	+	0.019	))
=	7.463

	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	))
=	3.034	-	0.6	-	( 0.008	-	max(0, 4.26	-	0.029	+	0.008	))
=	6.665

Top Shelf Brands Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2011 is calculated as:

	ROIC % (Q: Sep. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2011 )	+	Invested Capital (Q: Sep. 2011 ))	/ count )
=	-1.352 * ( 1 - 0% )	/	( (5.031	+	5.064)	/ 2 )
=	-1.352	/	5.0475
=	-26.79 %

where

	Invested Capital		(Q: Jun. 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	))
=	3.193	-	0.948	-	( 0.006	-	max(0, 3.053	-	0.267	+	0.006	))
=	5.031

	Invested Capital		(Q: Sep. 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	))
=	3.047	-	1.145	-	( 0.016	-	max(0, 3.31	-	0.148	+	0.016	))
=	5.064

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

Top Shelf Brands Holdings (OTCPK:DKTS) 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, Top Shelf Brands Holdings's WACC % is 0.00%. Top Shelf Brands Holdings'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.

Top Shelf Brands Holdings ROIC % Related Terms

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Top Shelf Brands Holdings (Top Shelf Brands Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Top Shelf Brands Holdings Corp (OTCPK:DKTS) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

700 Louisiana Street, Bank of America Center, Suite 3950, Houston, TX, USA, 77002

Website

http://www.drinktopshelf.com

Top Shelf Brands Holdings Corp is engaged in the business of developing, importing, marketing and supplying branded alcoholic beverage brands and boutique wines. It specializes in the brand creation and strategic identity marketing for its products.

Top Shelf Brands Holdings (Top Shelf Brands Holdings) Headlines

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