GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Inteliquent Inc (NAS:IQNT) » Definitions » ROIC %

Inteliquent (Inteliquent) ROIC % : 48.86% (As of Sep. 2016)


View and export this data going back to 2007. Start your Free Trial

What is Inteliquent 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 %. Inteliquent's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2016 was 48.86%.

As of today (2024-05-06), Inteliquent's WACC % is 0.00%. Inteliquent's ROIC % is 0.00% (calculated using TTM income statement data). Inteliquent earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Inteliquent ROIC % Historical Data

The historical data trend for Inteliquent'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.

Inteliquent ROIC % Chart

Inteliquent Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.53 -25.49 99.04 86.52 62.18

Inteliquent Quarterly Data
Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 60.20 52.39 51.64 49.97 48.86

Competitive Comparison of Inteliquent's ROIC %

For the Telecom Services subindustry, Inteliquent'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.


Inteliquent's ROIC % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Inteliquent's ROIC % distribution charts can be found below:

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



Inteliquent ROIC % Calculation

Inteliquent's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2015 is calculated as:

ROIC % (A: Dec. 2015 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2014 ) + Invested Capital (A: Dec. 2015 ))/ count )
=59.44 * ( 1 - 37.19% )/( (49.307 + 70.783)/ 2 )
=37.334264/60.045
=62.18 %

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))
=170.171 - 16.127 - ( 104.737 - max(0, 16.127 - 141.857+104.737))
=49.307

Inteliquent's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2016 is calculated as:

ROIC % (Q: Sep. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2016 ) + Invested Capital (Q: Sep. 2016 ))/ count )
=57.876 * ( 1 - 35.53% )/( (72.532 + 80.191)/ 2 )
=37.3126572/76.3615
=48.86 %

where

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))
=221.393 - 28.978 - ( 119.883 - max(0, 31.563 - 171.849+119.883))
=72.532

Invested Capital(Q: Sep. 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))
=238.525 - 37.867 - ( 120.467 - max(0, 40.549 - 179.433+120.467))
=80.191

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

* 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.


Inteliquent  (NAS:IQNT) 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, Inteliquent's WACC % is 0.00%. Inteliquent'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.


Inteliquent ROIC % Related Terms

Thank you for viewing the detailed overview of Inteliquent's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Inteliquent (Inteliquent) Business Description

Traded in Other Exchanges
N/A
Address
Inteliquent Inc was incorporated on April 19, 2001 in Delaware and commenced its operations in 2004. The Company provides voice telecommunications services on a wholesale basis. It offers telecommunication services using an all-IP network, which enables it to deliver connectivity for a variety of media, including voice, and historically data and video. The Company's solutions enable carriers and other providers to deliver voice traffic or other services where it does not own a network or elect not to use their own network. These solutions are sometimes called off-net services. The Company also provides its solutions to customers, such as over-the-top providers, who also typically do not have their own network. Its services include Local Transit Service, Long Distance Service, Switched Access Service, International Voice Service, Direct Inward Dialing Service, 8XX (Toll-Free) Service. Its customers include AT&T, Verizon, and T-Mobile. Its competitors are the traditional ILECs (AT&T, Verizon and CenturyLink), other competitive carriers that provide tandem or similar services (Level 3, Peerless Network, and Hypercube), and direct connections between carriers. It is subject to the jurisdiction of both federal and state regulatory agencies, which have the authority to review prices, terms and conditions of service.
Executives
Matthew Jr Carter director, officer: President and CEO 550 W ADAMS, STE 900, CHICAGO IL 60661
Lauren F Wright director C/O COMVERSE TECHNOLOGY, INC., 810 SEVENTH AVENUE, SUITE 3500, NEW YORK NY 10019
Kurt Abkemeier officer: Chief Financial Officer / EVP C/O PROGRESS SOFTWARE CORPORATION, 14 OAK PARK DRIVE, BEDFORD MA 01730
Peter J Barris director 1119 ST PAUL STREET, BALTIMORE MD 21202
C Richard Kramlich 10 percent owner 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
New Enterprise Associates 10 L P 10 percent owner
Nea Partners 10 L P 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202
Scott D Sandell 10 percent owner
M James Barrett 10 percent owner 1119 ST PAUL STREET, BALTIMORE MD 21202
Newhall Charles W Iii 10 percent owner 1119 ST PAUL ST, BALTIMORE MD 21202
Mark W Perry 10 percent owner
Trainor Iii Eugene A 10 percent owner NEW ENTERPRISE ASSOCIATES, 1119 ST PAUL STREET, BALTIMORE MD 21202

Inteliquent (Inteliquent) Headlines

From GuruFocus

6 Stocks Meeting Benjamin Graham's Enterprising Criteria In 2013

By GrahamValue.com SerenityStocks 03-27-2013

Inteliquent: Special Dividend Creates Net-Net Illusion

By Mark Lin Mark Lin 11-15-2012