FBC Holding (FBC Holding) ROIC % : -27.51% (As of Apr. 2013)

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What is FBC Holding 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 %. FBC Holding's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2013 was -27.51%.

As of today (2024-06-02), FBC Holding's WACC % is 0.00%. FBC Holding's ROIC % is 0.00% (calculated using TTM income statement data). FBC Holding earns returns that do not match up to its cost of capital. It will destroy value as it grows.

FBC Holding ROIC % Historical Data

The historical data trend for FBC Holding'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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FBC Holding ROIC % Chart

FBC Holding Annual Data

Trend

Jul06

Jul07

Jul08

Jul09

Jul10

Jul11

ROIC %

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-1,103.33

-87,050.00

-34.15

-251.65

-225.92

FBC Holding Quarterly Data
	Jul08	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13
ROIC %	Get a 7-Day Free Trial															-15.40	-289.01	-5.05	-7.80	-27.51

Competitive Comparison of FBC Holding's ROIC %

For the Apparel Retail subindustry, FBC Holding'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.

FBC Holding's ROIC % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, FBC Holding's ROIC % distribution charts can be found below:

* The bar in red indicates where FBC Holding's ROIC % falls into.

FBC Holding ROIC % Calculation

FBC Holding's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jul. 2011 is calculated as:

	ROIC % (A: Jul. 2011 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2010 )	+	Invested Capital (A: Jul. 2011 ))	/ count )
=	-5.491 * ( 1 - 0% )	/	( (3.147	+	1.714)	/ 2 )
=	-5.491	/	2.4305
=	-225.92 %

where

	Invested Capital		(A: Jul. 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	))
=	0	-	0.338	-	( 0	-	max(0, 3.485	-	0	+	0	))
=	3.147

	Invested Capital		(A: Jul. 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	))
=	0.118	-	0.344	-	( 0.009	-	max(0, 2.058	-	0.118	+	0.009	))
=	1.714

FBC Holding's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Apr. 2013 is calculated as:

	ROIC % (Q: Apr. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jan. 2013 )	+	Invested Capital (Q: Apr. 2013 ))	/ count )
=	-0.904 * ( 1 - 0% )	/	( (3.147	+	3.424)	/ 2 )
=	-0.904	/	3.2855
=	-27.51 %

where

	Invested Capital		(Q: Jan. 2013 )
=	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	))
=	0.043	-	0.828	-	( 0.001	-	max(0, 3.933	-	0.001	+	0.001	))
=	3.147

	Invested Capital		(Q: Apr. 2013 )
=	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	))
=	0.008	-	1.013	-	( 0.003	-	max(0, 4.432	-	0.003	+	0.003	))
=	3.424

Note: The Operating Income data used here is four times the quarterly (Apr. 2013) data.

FBC Holding (OTCPK:FBCD) 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, FBC Holding's WACC % is 0.00%. FBC Holding'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.

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