Fiverr International (BSP:F2VR34) ROC % : -0.98% (As of Dec. 2023)

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What is Fiverr International 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 %. Fiverr International's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -0.98%.

As of today (2024-04-27), Fiverr International's WACC % is 7.48%. Fiverr International's ROC % is -2.11% (calculated using TTM income statement data). Fiverr International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Fiverr International ROC % Historical Data

The historical data trend for Fiverr International'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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Fiverr International ROC % Chart

Fiverr International Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-44.18

-5.25

-9.69

-8.65

-2.07

Fiverr International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															-3.17	-6.49	-1.47	-1.56	-0.98

Fiverr International ROC % Calculation

Fiverr International's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-74.031 * ( 1 - 27.16% )	/	( (2345.56	+	2866.559)	/ 2 )
=	-53.9241804	/	2606.0595
=	-2.07 %

where

	Invested Capital		(A: Dec. 2022 )
=	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	))
=	4845.711	-	254.475	-	( 2423.611	-	max(0, 1033.858	-	3279.534	+	2423.611	))
=	2345.56

	Invested Capital		(A: Dec. 2023 )
=	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	))
=	5015.455	-	242.623	-	( 2045.044	-	max(0, 1006.541	-	2912.814	+	2045.044	))
=	2866.559

Fiverr International's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-31.516 * ( 1 - 11.4% )	/	( (2860.386	+	2866.559)	/ 2 )
=	-27.923176	/	2863.4725
=	-0.98 %

where

	Invested Capital		(Q: Sep. 2023 )
=	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	))
=	4941.668	-	253.469	-	( 1969.326	-	max(0, 1067.525	-	2895.338	+	1969.326	))
=	2860.386

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	5015.455	-	242.623	-	( 2045.044	-	max(0, 1006.541	-	2912.814	+	2045.044	))
=	2866.559

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Fiverr International (BSP:F2VR34) 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, Fiverr International's WACC % is 7.48%. Fiverr International's ROC % is -2.11% (calculated using TTM income statement data). Fiverr International 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.

Fiverr International ROC % Related Terms

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Fiverr International (BSP:F2VR34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Fiverr International Ltd (BSP:F2VR34) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

FVRR:USA FVRR:Mexico 11V:Germany

Address

8 Eliezer Kaplan Street, Tel Aviv, ISR, 6473409

Website

https://www.fiverr.com

Fiverr International Ltd is involved in buying and selling digital services in the same fashion as physical goods on an e-commerce platform. It is set out to design a digital marketplace that is built with a comprehensive SKU-like services catalog and a search, finds, and order process that mirrors a typical e-commerce transaction. The service offerings of the company include Graphics and Design, Digital Marketing, Wiring and Translation, and Video and Animation among others.

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