ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Fyber NV's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2021 was 12.09%.
As of today (2024-05-28), Fyber NV's WACC % is 0.92%. Fyber NV's ROIC % is 2.73% (calculated using TTM income statement data).
Fyber NV 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.
Fyber NV ROIC % Historical Data
The historical data trend for Fyber NV'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 Software - Application subindustry, Fyber NV'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.
Fyber NV's ROIC % Distribution in the Software Industry
For the Software industry and Technology sector, Fyber NV's ROIC % distribution charts can be found below:
* The bar in red indicates where Fyber NV's ROIC % falls into.
Fyber NV ROIC % Calculation
Fyber NV's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2020 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Mar. 2021) 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.
Fyber NV (LTS:0RU2) 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, Fyber NV's WACC % is 0.92%. Fyber NV's ROIC % is 2.73% (calculated using TTM income statement data).
Fyber NV 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.
Fyber 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 %, 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.
Fyber NV ROIC % Related Terms
Thank you for viewing the detailed overview of Fyber NV's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Fyber NV is a mobile advertising technology company operating through its subsidiary. Its focus lies on developing monetization solutions for connected devices. Fyber's supply-side platform helps application developers and publishers to monetize the traffic more effectively. Its platform comprises an ad exchange and a mediation layer which provides app developers and publishers easier access to a range of demand-side partners and advertisers. It also offers software-based solutions (such as advertisement analytics & reporting, yield optimization, ad stack management, audience segmentation tools) to increase performance. Fyber has presence in the United States, Europe, Middle East, Africa, Asia Pacific and Rest of the world.
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