TeleCommunication Systems (TeleCommunication Systems) ROC % : 7.53% (As of Sep. 2015)

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What is TeleCommunication Systems 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 %. TeleCommunication Systems's annualized return on capital (ROC %) for the quarter that ended in Sep. 2015 was 7.53%.

As of today (2024-05-12), TeleCommunication Systems's WACC % is 0.00%. TeleCommunication Systems's ROC % is 0.00% (calculated using TTM income statement data). TeleCommunication Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.

TeleCommunication Systems ROC % Historical Data

The historical data trend for TeleCommunication Systems'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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TeleCommunication Systems ROC % Chart

TeleCommunication Systems Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROC %

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6.46

3.40

-27.11

-15.65

-5.15

TeleCommunication Systems Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
ROC %	Get a 7-Day Free Trial															-19.94	-2.54	1.86	3.43	7.53

TeleCommunication Systems ROC % Calculation

TeleCommunication Systems's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2014 is calculated as:

	ROC % (A: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2013 )	+	Invested Capital (A: Dec. 2014 ))	/ count )
=	12.2 * ( 1 - 196.27% )	/	( (227.527	+	228.735)	/ 2 )
=	-11.74494	/	228.131
=	-5.15 %

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	))
=	321.455	-	38.75	-	( 61.908	-	max(0, 93.704	-	148.882	+	61.908	))
=	227.527

	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	))
=	334.081	-	55.198	-	( 50.148	-	max(0, 96.489	-	170.753	+	50.148	))
=	228.735

TeleCommunication Systems's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2015 is calculated as:

	ROC % (Q: Sep. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2015 )	+	Invested Capital (Q: Sep. 2015 ))	/ count )
=	26.64 * ( 1 - 31.85% )	/	( (238.466	+	243.663)	/ 2 )
=	18.15516	/	241.0645
=	7.53 %

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	))
=	341.096	-	48.921	-	( 53.709	-	max(0, 81.245	-	180.281	+	53.709	))
=	238.466

	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	))
=	348.826	-	53.521	-	( 51.642	-	max(0, 85.744	-	187.775	+	51.642	))
=	243.663

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

TeleCommunication Systems (NAS:TSYS) 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, TeleCommunication Systems's WACC % is 0.00%. TeleCommunication Systems's ROC % is 0.00% (calculated using TTM income statement data). TeleCommunication Systems 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.

TeleCommunication Systems ROC % Related Terms

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TeleCommunication Systems (TeleCommunication Systems) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » TeleCommunication Systems Inc (NAS:TSYS) » Definitions » ROC %

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Address

Website

http://www.telecomsys.com

TeleCommunication Systems Inc is a Maryland corporation, founded in 1987. The Company develops and delivers wireless communication technology, the development of which has led to ownership of 349 patents and nearly 400 patent applications. It delivers cellular network computing services that include public safety solutions for 9-1-1 call delivery, precision location platforms, and applications that include navigation, locator applications and text messaging, as well as secure wireless communications systems and professional services, including cybersecurity training and technology for defense and other government customers. Customers use its "mobile cloud" software functionality through connections to and from network operations centers, paying the Company monthly fees based on the number of subscribers, cell sites, call center circuits, or other metrics. The Company does business with the U.S. federal government as a prime contractor under major technology contract vehicles, as well as state, local and foreign government entities. The Company's segments include Government, and Commercial. Through the Government Segment, it provides professional services including field support of deployable wireless systems and cybersecurity training to the U.S. Department of Defense and other government and foreign customers. It owns and operates secure satellite teleport facilities, resell access to satellite airtime (known as space segment), and design, furnish, install and operate wireless communication systems and components, including its SwiftLink deployable communication systems which integrate high speed, satellite and internet protocol technology with secure, federal government-approved cryptologic devices. Through the Commercial segment, it enables 9-1-1 call routing via cellular, Voice over Internet Protocol (VoIP) and next generation technology. Other hosted and managed services include cellular carrier infrastructure for text messaging and location-based platforms and applications, including turn-by-turn navigation. Commercial segment customers include wireless carrier network operators, Voice over Internet Protocol service providers, wireless device manufacturers, automotive industry suppliers, and state and local governments. SwiftLink, Xypoint, AtlasBook, Gokivo, Connections that Matter, Designed for Mobility, Secure the Edge, Art of Exploitation, and Enabling Convergent Technologies are registered trademarks or service marks of the Company. The Company sells products and services through direct sales force and through indirect channels. The Company is subject to procurement and other related laws and regulations which carry significant penalties for non-compliance.

Executives

Bell Don Carlos Iii	director	3713 SOUTHWESTERN BLVD, DALLAS TX 75225
Michael P Madon	director	7732 BRIDLE PATH LN, MCLEAN VA 22102
Riverview Group Llc	10 percent owner	399 PARK AVENUE, NEW YORK NY 10022
Israel A Englander	other: May be deemed as group member.	C/O MILLENNIUM MANAGEMENT LLC, 399 PARK AVENUE, NEW YORK NY 10022
Millennium Management Llc	other: May be deemed as group member.	399 PARK AVENUE, NEW YORK NY 10022
Integrated Holding Group, L.p.	other: May be deemed as group member.	C/O MILLENNIUM MANAGEMENT LLC, 666 FIFTH AVENUE, 8TH FLOOR, NEW YORK NY 10103-0899