Cal Bay International (Cal Bay International) ROC % : -16.45% (As of Sep. 2006)

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What is Cal Bay International 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 %. Cal Bay International's annualized return on capital (ROC %) for the quarter that ended in Sep. 2006 was -16.45%.

As of today (2024-06-01), Cal Bay International's WACC % is 0.00%. Cal Bay International's ROC % is 0.00% (calculated using TTM income statement data). Cal Bay International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cal Bay International ROC % Historical Data

The historical data trend for Cal Bay International'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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Cal Bay International ROC % Chart

Cal Bay International Annual Data

Trend

Dec01

Dec02

Dec03

Dec04

Dec05

ROC %

-184.62

-2,458.59

-1,750.72

-485.72

-42.05

Cal Bay International Quarterly Data
	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06
ROC %	Get a 7-Day Free Trial															-42.96	-25.93	-50.58	-32.55	-16.45

Cal Bay International ROC % Calculation

Cal Bay International's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2005 is calculated as:

	ROC % (A: Dec. 2005 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2004 )	+	Invested Capital (A: Dec. 2005 ))	/ count )
=	-2.702 * ( 1 - 0% )	/	( (0.015	+	12.836)	/ 2 )
=	-2.702	/	6.4255
=	-42.05 %

where

	Invested Capital		(A: Dec. 2004 )
=	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	))
=	0.016	-	0.037	-	( 0.005	-	max(0, 0.041	-	0.005	+	0.005	))
=	0.015

	Invested Capital		(A: Dec. 2005 )
=	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	))
=	11.49	-	0.005	-	( 0.201	-	max(0, 1.895	-	0.544	+	0.201	))
=	12.836

Cal Bay International's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2006 is calculated as:

	ROC % (Q: Sep. 2006 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2006 )	+	Invested Capital (Q: Sep. 2006 ))	/ count )
=	-3.656 * ( 1 - % )	/	( (31.619	+	12.836)	/ 2 )
=	-3.656	/	22.2275
=	-16.45 %

where

	Invested Capital		(Q: Jun. 2006 )
=	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	))
=	32.473	-	0.593	-	( 0.261	-	max(0, 7.757	-	17.061	+	0.261	))
=	31.619

	Invested Capital		(Q: Sep. 2006 )
=	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	))
=	11.49	-	0.005	-	( 0.201	-	max(0, 1.895	-	0.544	+	0.201	))
=	12.836

Note: The Operating Income data used here is four times the quarterly (Sep. 2006) data.

Cal Bay International (OTCPK:CBYI) 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, Cal Bay International's WACC % is 0.00%. Cal Bay International's ROC % is 0.00% (calculated using TTM income statement data). Cal Bay International 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.

Cal Bay International ROC % Related Terms

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Cal Bay International (Cal Bay International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Cal Bay International Inc (OTCPK:CBYI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1887 Whitney Mesa Drive, No. 2127, Henderson, NV, USA, 89014

Website

https://www.cbyintl.com

Cal Bay International Inc acquired a Financial, merchant card processing system, CB Green Card, that allows the legal payment to the dispensary by patients using the CB Green card for purchases within the dispensaries. The majority of the transactions are on a cash only basis. The company's merchant processing system allows for the registered dispensaries to be able to accept and process the patients CB Green card and have the proceeds deposited to their financial institution, creating an alternative to holding large amounts of non depositable cash to the banks and at the same time creating a verifiable transaction of sales for state and Federal tax collection agencies. The company has also developed a formula specifically designed for enhancing the growth of marijuana plants.