Hannover House (Hannover House) ROC % : 1.11% (As of Dec. 2020)

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What is Hannover House 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 %. Hannover House's annualized return on capital (ROC %) for the quarter that ended in Dec. 2020 was 1.11%.

As of today (2024-06-10), Hannover House's WACC % is 0.00%. Hannover House's ROC % is 0.00% (calculated using TTM income statement data). Hannover House earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hannover House ROC % Historical Data

The historical data trend for Hannover House'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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Hannover House ROC % Chart

Hannover House Annual Data

Trend

Dec14

Dec15

Dec20

ROC %

4.47

1.11

Hannover House Semi-Annual Data
	Dec14	Dec15	Dec20
ROC %	-	4.47	1.11

Hannover House ROC % Calculation

Hannover House's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

	ROC % (A: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2015 )	+	Invested Capital (A: Dec. 2020 ))	/ count )
=	0.392 * ( 1 - 0% )	/	( (34.496	+	35.986)	/ 2 )
=	0.392	/	35.241
=	1.11 %

where

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	36.38	-	1.437	-	( 0.447	-	max(0, 4.306	-	12.815	+	0.447	))
=	34.496

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	36.776	-	0.312	-	( 0.478	-	max(0, 1.407	-	9.245	+	0.478	))
=	35.986

Hannover House's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2020 is calculated as:

	ROC % (Q: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2015 )	+	Invested Capital (Q: Dec. 2020 ))	/ count )
=	0.392 * ( 1 - 0% )	/	( (34.496	+	35.986)	/ 2 )
=	0.392	/	35.241
=	1.11 %

where

	Invested Capital		(Q: Dec. 2015 )
=	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	))
=	36.38	-	1.437	-	( 0.447	-	max(0, 4.306	-	12.815	+	0.447	))
=	34.496

	Invested Capital		(Q: Dec. 2020 )
=	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	))
=	36.776	-	0.312	-	( 0.478	-	max(0, 1.407	-	9.245	+	0.478	))
=	35.986

Note: The Operating Income data used here is one times the annual (Dec. 2020) data.

Hannover House (OTCPK:HHSE) 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, Hannover House's WACC % is 0.00%. Hannover House's ROC % is 0.00% (calculated using TTM income statement data). Hannover House 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.

Hannover House ROC % Related Terms

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Hannover House (Hannover House) Business Description

Industry

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Traded in Other Exchanges

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Address

1621 Central Avenue, Cheyenne, WY, USA, 82001

Website

https://www.hannoverhouse.com

Hannover House Inc is a service media company, specializing in the production and distribution of feature films for theaters, home videos, and video-on-demand formats for the North American retail marketplace. It is mainly focused on the literary and book-publishing industries. It is particularly noted for its successes in placing DVD titles within mass merchandisers and keychain stores. Retailers carrying Hannover products include independently owned and operated retail video stores, and mass merchants and retailers.

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