LifeQuest World (LifeQuest World) ROC % : -27.83% (As of May. 2009)

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What is LifeQuest World 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 %. LifeQuest World's annualized return on capital (ROC %) for the quarter that ended in May. 2009 was -27.83%.

As of today (2024-05-30), LifeQuest World's WACC % is 0.00%. LifeQuest World's ROC % is 0.00% (calculated using TTM income statement data). LifeQuest World earns returns that do not match up to its cost of capital. It will destroy value as it grows.

LifeQuest World ROC % Historical Data

The historical data trend for LifeQuest World'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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LifeQuest World ROC % Chart

LifeQuest World Annual Data

Trend

May00

May01

May02

May03

May04

May05

May06

May07

May08

May09

ROC %

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-26.22

-132.14

-72.25

-40.79

-27.83

LifeQuest World Semi-Annual Data
	May99	May00	May01	May02	May03	May04	May05	May06	May07	May08	May09
ROC %	Get a 7-Day Free Trial						-26.22	-132.14	-72.25	-40.79	-27.83

LifeQuest World ROC % Calculation

LifeQuest World's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2009 is calculated as:

	ROC % (A: May. 2009 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2008 )	+	Invested Capital (A: May. 2009 ))	/ count )
=	-1.09 * ( 1 - 0% )	/	( (2.401	+	5.433)	/ 2 )
=	-1.09	/	3.917
=	-27.83 %

where

	Invested Capital		(A: May. 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	))
=	2.718	-	1.586	-	( 0.016	-	max(0, 1.586	-	0.317	+	0.016	))
=	2.401

	Invested Capital		(A: May. 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	))
=	4.333	-	1.247	-	( 0	-	max(0, 2.629	-	0.282	+	0	))
=	5.433

LifeQuest World's annualized Return on Capital (ROC %) for the quarter that ended in May. 2009 is calculated as:

	ROC % (Q: May. 2009 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2008 )	+	Invested Capital (Q: May. 2009 ))	/ count )
=	-1.09 * ( 1 - 0% )	/	( (2.401	+	5.433)	/ 2 )
=	-1.09	/	3.917
=	-27.83 %

where

	Invested Capital		(Q: May. 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	))
=	2.718	-	1.586	-	( 0.016	-	max(0, 1.586	-	0.317	+	0.016	))
=	2.401

	Invested Capital		(Q: May. 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	))
=	4.333	-	1.247	-	( 0	-	max(0, 2.629	-	0.282	+	0	))
=	5.433

Note: The Operating Income data used here is one times the annual (May. 2009) data.

LifeQuest World (OTCPK:LQWC) 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, LifeQuest World's WACC % is 0.00%. LifeQuest World's ROC % is 0.00% (calculated using TTM income statement data). LifeQuest World 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.

LifeQuest World ROC % Related Terms

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LifeQuest World (LifeQuest World) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » LifeQuest World Corp (OTCPK:LQWC) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

100 Challenger Road, 8th Floor, Ridgefield Park, NJ, USA, 07660

Website

https://www.lifequestcorp.com

LifeQuest World Corp is a technology leader in low-cost, low-maintenance, eco-friendly, decentralized wastewater treatment. It intends to rapidly add solutions for the treatment of effluents. The company markets the following products namely BioPipe; Abrimix water treatment technology is capable of treating industrial wastewater and Goslyn is a patented fat, oil, and grease recovery device used in restaurants, hotels, and industrial kitchens.

Executives

Anthony Carl Jurak	director, 10 percent owner, officer: CEO	297 MARIN ST, SAINTE ADELE QUEBEC A1 J8B2P8
Roger Theriault	director, officer: President	1181 GRIER DR., SUITE C, LAS VEGAS NV 89119
Maria Jose Guedes	officer: V.P. of Operations/Asst. Secy.	1181 GRIER DR., SUITE C, LAS VEGAS NV 89119