AVG Technologies NV (AVG Technologies NV) ROC % : 6.48% (As of Jun. 2016)

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What is AVG Technologies NV 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 %. AVG Technologies NV's annualized return on capital (ROC %) for the quarter that ended in Jun. 2016 was 6.48%.

As of today (2024-04-26), AVG Technologies NV's WACC % is 0.00%. AVG Technologies NV's ROC % is 0.00% (calculated using TTM income statement data). AVG Technologies NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.

AVG Technologies NV ROC % Historical Data

The historical data trend for AVG Technologies NV'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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AVG Technologies NV ROC % Chart

AVG Technologies NV Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROC %

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50.02

17.80

18.70

11.71

9.42

AVG Technologies NV Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
ROC %	Get a 7-Day Free Trial															7.10	6.74	14.90	8.55	6.48

AVG Technologies NV ROC % Calculation

AVG Technologies NV's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	74.934 * ( 1 - 17.7% )	/	( (629.152	+	679.618)	/ 2 )
=	61.670682	/	654.385
=	9.42 %

where

	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	))
=	647.089	-	62.321	-	( 138.907	-	max(0, 255.652	-	211.268	+	138.907	))
=	629.152

	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	))
=	681.611	-	58.791	-	( 123.767	-	max(0, 284.199	-	227.401	+	123.767	))
=	679.618

AVG Technologies NV's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2016 is calculated as:

	ROC % (Q: Jun. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2016 )	+	Invested Capital (Q: Jun. 2016 ))	/ count )
=	49.616 * ( 1 - 18.83% )	/	( (627.27	+	615.678)	/ 2 )
=	40.2733072	/	621.474
=	6.48 %

where

	Invested Capital		(Q: Mar. 2016 )
=	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	))
=	655.219	-	96.82	-	( 123.372	-	max(0, 263.637	-	194.766	+	123.372	))
=	627.27

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	618.822	-	80.873	-	( 96.715	-	max(0, 243.745	-	166.016	+	96.715	))
=	615.678

Note: The Operating Income data used here is four times the quarterly (Jun. 2016) data.

AVG Technologies NV (OTCPK:AVGTF) 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, AVG Technologies NV's WACC % is 0.00%. AVG Technologies NV's ROC % is 0.00% (calculated using TTM income statement data). AVG Technologies NV 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.

AVG Technologies NV ROC % Related Terms

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AVG Technologies NV (AVG Technologies NV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » AVG Technologies NV (OTCPK:AVGTF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.avg.com

AVG Technologies N.V is functional in the software industry based in the Netherlands. The company designs products which allow the users of internet and computer systems a safe browsing and data management experience. Its product portfolio caters to the consumer and SMB markets across multiple devices and operating systems with Internet security, PC performance optimization, online backup, identity protection, family safety, mobile control and location services and dynamic secure search. AVG's suite of trademark products includes AVG Anti-Virus FREE, AVG Anti-Virus, AVG Web TuneUp, AVG Cleaner-Xperia and HideMyPhone, among others. The company's licenses derived through the consumer market, primarily in the United States are its major revenue drivers.

Executives

Ahmet H Okumus	10 percent owner	C/O OKUMUS FUND MANAGEMENT LTD., 767 THIRD AVENUE, 35TH FLOOR, NEW YORK NY 10022
Okumus Fund Management Ltd.	10 percent owner	767 THIRD AVENUE, 35TH FLOOR, NEW YORK NY 10017
Okumus Opportunistic Value Fund Ltd.	10 percent owner	CRAIGMUIR CHAMBERS, SUITE 71, ROAD TOWN, TORTOLA D8 VG 1110

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