Enable Ipc (Enable Ipc) ROIC % : -89.50% (As of Sep. 2008)

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What is Enable Ipc 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 %. Enable Ipc's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2008 was -89.50%.

As of today (2024-06-07), Enable Ipc's WACC % is 0.00%. Enable Ipc's ROIC % is 0.00% (calculated using TTM income statement data). Enable Ipc earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Enable Ipc ROIC % Historical Data

The historical data trend for Enable Ipc'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.

Enable Ipc ROIC % Chart

Enable Ipc Annual Data

Trend

Mar05

Mar06

Mar07

Mar08

ROIC %

-82.61

-146.88

-79.84

-85.13

Enable Ipc Quarterly Data
	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08
ROIC %	Get a 7-Day Free Trial									-86.13	-122.22	-81.70	-74.68	-89.50

Competitive Comparison of Enable Ipc's ROIC %

For the Electrical Equipment & Parts subindustry, Enable Ipc'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.

Enable Ipc's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Enable Ipc's ROIC % distribution charts can be found below:

* The bar in red indicates where Enable Ipc's ROIC % falls into.

Enable Ipc ROIC % Calculation

Enable Ipc's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2008 is calculated as:

	ROIC % (A: Mar. 2008 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2007 )	+	Invested Capital (A: Mar. 2008 ))	/ count )
=	-0.89 * ( 1 - 0% )	/	( (0.843	+	1.248)	/ 2 )
=	-0.89	/	1.0455
=	-85.13 %

where

	Invested Capital		(A: Mar. 2007 )
=	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	))
=	0.589	-	0.301	-	( 0.022	-	max(0, 0.596	-	0.041	+	0.022	))
=	0.843

	Invested Capital		(A: Mar. 2008 )
=	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	))
=	0.815	-	0.2	-	( 0.04	-	max(0, 0.702	-	0.069	+	0.04	))
=	1.248

Enable Ipc's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2008 is calculated as:

	ROIC % (Q: Sep. 2008 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2008 )	+	Invested Capital (Q: Sep. 2008 ))	/ count )
=	-1.048 * ( 1 - 0% )	/	( (1.173	+	1.169)	/ 2 )
=	-1.048	/	1.171
=	-89.50 %

where

	Invested Capital		(Q: Jun. 2008 )
=	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	))
=	0.763	-	0.241	-	( 0.002	-	max(0, 0.676	-	0.025	+	0.002	))
=	1.173

	Invested Capital		(Q: Sep. 2008 )
=	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	))
=	0.739	-	0.323	-	( 0.002	-	max(0, 0.762	-	0.009	+	0.002	))
=	1.169

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

Enable Ipc (OTCPK:EIPC) 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, Enable Ipc's WACC % is 0.00%. Enable Ipc'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.

Enable Ipc ROIC % Related Terms

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Enable Ipc (Enable Ipc) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Enable Ipc Corp (OTCPK:EIPC) » Definitions » ROIC %

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Traded in Other Exchanges

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Address

26893 Bouquet Canyon Road, Suite C-110, Saugus, CA, USA, 91350

Website

http://www.enableipc.com

Enable Ipc Corp. is engaged in the development of new power technologies that combine thin films and nanotechnology. The company's products include potentiostat, galvanostat and impedance anaylzer systems.

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