ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. CTC Media's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2015 was -91.01%.
As of today (2024-04-26), CTC Media's WACC % is 0.00%. CTC Media's ROIC % is 0.00% (calculated using TTM income statement data).
CTC Media earns returns that do not match up to its cost of capital. It will destroy value as it grows.
CTC Media ROIC % Historical Data
The historical data trend for CTC Media'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.
For the Broadcasting subindustry, CTC Media'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.
CTC Media's ROIC % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, CTC Media's ROIC % distribution charts can be found below:
* The bar in red indicates where CTC Media's ROIC % falls into.
CTC Media ROIC % Calculation
CTC Media's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2015 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Dec. 2015) 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.
CTC Media (NAS:CTCM) 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, CTC Media's WACC % is 0.00%. CTC Media'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.
CTC Media ROIC % Related Terms
Thank you for viewing the detailed overview of CTC Media's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
CTC Media Inc was incorporated in 1989 and commenced television operations in May 1994, initially broadcasting from its first owned-and-operated station in St. Petersburg to 22 cities across Russia as a superstation a single station that retransmits its signal to remote locations. In December 1996, the Company launched CTC, a national network broadcasting by satellite from its center in Moscow. The Company launched Domashny in March 2005 and acquired DTV in April 2008.Its TV channels are currently distributed by means of free-to-air terrestrial broadcasting in analog format. Its signals are broadcasted by the owned-and-operated stations and unmanned repeater transmitters according to local analog broadcast licenses and universal licenses for analog frequencies in the respective regions, as well as by its independent affiliate stations and local cable operators. In exchange for the right to broadcast its signal, the company allows its affiliates to broadcast local advertising during designated time windows, from which they derive revenues. At CTC's Domashny and DTV Networks it also pays fees to some independent affiliates of these networks for broadcasting the Domashny or DTV signal. The Company has four reportable segments: CTC Network, Domashny Network, Peretz Network, and Channel 31. The Company competes with other broadcasters and other forms of media for advertising spending, and with other broadcasters for audience share, programming rights, affiliate stations and broadcast frequencies in particular VHF frequencies in key markets. The Company has registered trademarks for the "CTC", "Domashny", "DTV" and "CTC Media" name and logo in the Russian Federation.
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