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Intercede Group (LSE:IGP) ROIC % : 25.57% (As of Sep. 2023)


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What is Intercede Group 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 %. Intercede Group's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was 25.57%.

As of today (2024-05-17), Intercede Group's WACC % is 9.89%. Intercede Group's ROIC % is 16.00% (calculated using TTM income statement data). Intercede Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Intercede Group ROIC % Historical Data

The historical data trend for Intercede Group'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.

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Intercede Group ROIC % Chart

Intercede Group Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.81 29.52 31.18 12.30 12.27

Intercede Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 25.19 7.04 39.44 -6.83 25.57

Competitive Comparison of Intercede Group's ROIC %

For the Software - Application subindustry, Intercede Group'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.


Intercede Group's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, Intercede Group's ROIC % distribution charts can be found below:

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



Intercede Group ROIC % Calculation

Intercede Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

ROIC % (A: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2022 ) + Invested Capital (A: Mar. 2023 ))/ count )
=0.571 * ( 1 - -109.42% )/( (6.87 + 12.624)/ 2 )
=1.1957882/9.747
=12.27 %

where

Intercede Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

ROIC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=1.92 * ( 1 - -41.29% )/( (12.624 + 8.597)/ 2 )
=2.712768/10.6105
=25.57 %

where

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) 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.


Intercede Group  (LSE:IGP) 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, Intercede Group's WACC % is 9.89%. Intercede Group's ROIC % is 16.00% (calculated using TTM income statement data). Intercede Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Intercede Group 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 %, 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.


Intercede Group ROIC % Related Terms

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Intercede Group (LSE:IGP) Business Description

Traded in Other Exchanges
Address
St. Mary's Road, Lutterworth Hall, Lutterworth, Leicestershire, GBR, LE17 4PS
Intercede Group PLC is an independent developer and supplier of identity and credential management software. Its product portfolio includes MyID, an identity, and credential management system, RapID is the password killer for killer apps, and MyTAM enables Android app developers and service providers to deploy trusted applications to the trusted execution environment in a simple and cost-effective manner. The company serves a diverse range of markets including governments, enterprises, app developers, and service providers. It has operational footprints across the United Kingdom, Rest of Europe, North America, and Rest of World. The Majority of its revenue is derived from North America.

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