Telenet Group Holding NV (Telenet Group Holding NV) ROC % : -2.30% (As of Jun. 2023)

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What is Telenet Group Holding NV 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 %. Telenet Group Holding NV's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was -2.30%.

As of today (2024-04-26), Telenet Group Holding NV's WACC % is 1.81%. Telenet Group Holding NV's ROC % is 3.43% (calculated using TTM income statement data). Telenet Group Holding 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.

Telenet Group Holding NV ROC % Historical Data

The historical data trend for Telenet Group Holding NV'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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Telenet Group Holding NV ROC % Chart

Telenet Group Holding NV Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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6.46

7.02

8.37

7.14

7.25

Telenet Group Holding NV Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
ROC %	Get a 7-Day Free Trial															9.84	7.21	0.19	5.37	-2.30

Telenet Group Holding NV ROC % Calculation

Telenet Group Holding NV's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	609.64 * ( 1 - 12.74% )	/	( (7001.807	+	7683.262)	/ 2 )
=	531.971864	/	7342.5345
=	7.25 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	6331.638	-	421.13	-	( 157.627	-	max(0, 1693.672	-	602.373	+	157.627	))
=	7001.807

	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	))
=	8036.864	-	450.742	-	( 1127.542	-	max(0, 1767.267	-	1670.127	+	1127.542	))
=	7683.262

Telenet Group Holding NV's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	671.288 * ( 1 - 126.45% )	/	( (7701.606	+	7737.378)	/ 2 )
=	-177.555676	/	7719.492
=	-2.30 %

where

	Invested Capital		(Q: Mar. 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	))
=	8003.212	-	328.158	-	( 1084.047	-	max(0, 1708.779	-	1682.227	+	1084.047	))
=	7701.606

	Invested Capital		(Q: Jun. 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	))
=	8037.486	-	389.924	-	( 1101.95	-	max(0, 1855.796	-	1765.98	+	1101.95	))
=	7737.378

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

Telenet Group Holding NV (OTCPK:TLGHY) 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, Telenet Group Holding NV's WACC % is 1.81%. Telenet Group Holding NV's ROC % is 3.43% (calculated using TTM income statement data). Telenet Group Holding 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.

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.

Telenet Group Holding NV ROC % Related Terms

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Telenet Group Holding NV (Telenet Group Holding NV) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telenet Group Holding NV (OTCPK:TLGHY) » Definitions » ROC %

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Address

Liersesteenweg 4, Antwerpen, Mechelen, BEL, 2800

Website

http://www.telenet.be

Telenet Group Holding NV is a Belgian triple-play telecommunications company. Telenet generates revenue from the provision of broadband services, fixed services, mobile services as well as pay-TV services. Of the subscriber base, the majority receive all three solutions from the company. However, from a product revenue perspective, the company derives the majority of overall revenue from video and broadband services. Both video and Internet services are delivered via the company's owned hybrid fiber-coaxial infrastructure. Telenet operates in both Belgium and Luxembourg.