Merriman Holdings (Merriman Holdings) ROIC % : -130.06% (As of Sep. 2015)

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What is Merriman Holdings 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 %. Merriman Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2015 was -130.06%.

As of today (2024-05-09), Merriman Holdings's WACC % is 0.00%. Merriman Holdings's ROIC % is 0.00% (calculated using TTM income statement data). Merriman Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Merriman Holdings ROIC % Historical Data

The historical data trend for Merriman Holdings'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.

Merriman Holdings ROIC % Chart

Merriman Holdings Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROIC %

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-449.57

-306.78

-310.99

-217.67

7.63

Merriman Holdings Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
ROIC %	Get a 7-Day Free Trial															-110.78	-250.03	-370.21	-268.95	-130.06

Competitive Comparison of Merriman Holdings's ROIC %

For the Capital Markets subindustry, Merriman Holdings'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.

Merriman Holdings's ROIC % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Merriman Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Merriman Holdings's ROIC % falls into.

Merriman Holdings ROIC % Calculation

Merriman Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2014 is calculated as:

	ROIC % (A: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2013 )	+	Invested Capital (A: Dec. 2014 ))	/ count )
=	0.095 * ( 1 - 0% )	/	( (1.159	+	1.332)	/ 2 )
=	0.095	/	1.2455
=	7.63 %

where

	Invested Capital		(A: Dec. 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	))
=	5.431	-	1.55	-	( 2.892	-	max(0, 2.049	-	4.771	+	2.892	))
=	1.159

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	5.717	-	1.318	-	( 3.352	-	max(0, 1.945	-	5.012	+	3.352	))
=	1.332

Merriman Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2015 is calculated as:

	ROIC % (Q: Sep. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2015 )	+	Invested Capital (Q: Sep. 2015 ))	/ count )
=	-1.564 * ( 1 - 0% )	/	( (1.322	+	1.083)	/ 2 )
=	-1.564	/	1.2025
=	-130.06 %

where

	Invested Capital		(Q: Jun. 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	))
=	3.772	-	1.17	-	( 1.28	-	max(0, 1.762	-	3.198	+	1.28	))
=	1.322

	Invested Capital		(Q: Sep. 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	))
=	3.421	-	1.279	-	( 1.381	-	max(0, 1.852	-	2.911	+	1.381	))
=	1.083

Note: The Operating Income data used here is four times the quarterly (Sep. 2015) data.

Merriman Holdings (OTCPK:MERR) 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, Merriman Holdings's WACC % is 0.00%. Merriman Holdings'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.

Merriman Holdings ROIC % Related Terms

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Merriman Holdings (Merriman Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Merriman Holdings Inc (OTCPK:MERR) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

250 Montgomery Street, 16th Floor, San Francisco, CA, USA, 94104

Website

http://www.merrimanco.com

Merriman Holdings Inc is a financial service holding company. It provides capital markets advisory and research, corporate and investment banking services. The company's investment bankers provide a range of corporate finance and strategic advisory services. Its corporate finance practice advises on and structures capital raising solutions for its corporate clients through public and private offerings primarily of equity and convertible debt securities.

Executives

D Jonathan Merriman	director, 10 percent owner, officer: CEO	MERRIMAN CURHAN FORD & CO 600 CALIFORNIA ST., 9TH FLOOR SAN FRANCISCO CA 94108
Ronald L Chez	director, 10 percent owner	1524 NORTH ASTOR, CHICAGO IL 60610
Jeffrey M Soinski	director	585 WEST 500 SOUTH, BOUNTIFUL UT 84010
William J Febbo	director	600 CALIFORNIA ST., 9TH FLOOR, SAN FRANCISCO CA 94108
Douglas Bergeron	director	111 W. OCEAN BOULEVARD, LONG BEACH CA 90802
Andrew Arno	director, 10 percent owner	C/O MERRIMAN CURHAN FORD GROUP, INC., 600 CALIFORNIA STREET, 9TH FLOOR, SAN FRANCISCO CA 94108
Christopher L Aguilar	officer: General Counsel	600 CALIFORNIA STREET, 9TH FLOOR, SAN FRANCISCO CA 94108
Robert J Majteles	director
Ronald Spears	director	600 CALIFORNIA STREET, 9TH FLOOR, SAN FRANCISCO CA 94108