ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kabel Deutschland Holding AG's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2021 was 12.67%.
As of today (2024-05-06), Kabel Deutschland Holding AG's WACC % is 0.00%. Kabel Deutschland Holding AG's ROIC % is 0.00% (calculated using TTM income statement data).
Kabel Deutschland Holding AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kabel Deutschland Holding AG ROIC % Historical 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.
Competitive Comparison of Kabel Deutschland Holding AG's ROIC %
For the Entertainment subindustry, Kabel Deutschland Holding AG'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.
Kabel Deutschland Holding AG's ROIC % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Kabel Deutschland Holding AG's ROIC % distribution charts can be found below:
* The bar in red indicates where Kabel Deutschland Holding AG's ROIC % falls into.
Kabel Deutschland Holding AG ROIC % Calculation
Kabel Deutschland Holding AG's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2021 is calculated as:
Note:
The Operating Income data used here is one times the annual (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.
Kabel Deutschland Holding AG (HAM:KD8) 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, Kabel Deutschland Holding AG's WACC % is 0.00%. Kabel Deutschland Holding AG'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.
Kabel Deutschland Holding AG ROIC % Related Terms
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Kabel Deutschland Holding AG (HAM:KD8) Business Description
Kabel Deutschland is a triple play cable network operator and holding company. Its primary revenue segments are TV Business and Internet and Phone Business. The TV Business segment offers subscribers basic cable- and premium-TV products. Revenue is generated through monthly subscription fees. The Internet and Phone business is primarily involved with providing broadband Internet as well as fixed-line and mobile phone services. Like the TV Business segment, revenue is earned through monthly subscription fees. The company's infrastructure comes in the form of hybrid fibre coaxial cables. Kabel Deustchland is majority owned by Vodafone and generates the majority of its revenue in Germany.
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