International Game Technology (FRA:IGT) ROC % : 5.33% (As of Dec. 2014)

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What is International Game Technology 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 %. International Game Technology's annualized return on capital (ROC %) for the quarter that ended in Dec. 2014 was 5.33%.

As of today (2024-04-30), International Game Technology's WACC % is 0.00%. International Game Technology's ROC % is 0.00% (calculated using TTM income statement data). International Game Technology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

International Game Technology ROC % Historical Data

The historical data trend for International Game Technology'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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International Game Technology ROC % Chart

International Game Technology Annual Data

Trend

Sep05

Sep06

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

ROC %

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9.04

9.96

9.26

8.97

9.05

International Game Technology Quarterly Data
	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14
ROC %	Get a 7-Day Free Trial															11.42	4.57	9.30	9.75	5.33

International Game Technology ROC % Calculation

International Game Technology's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2014 is calculated as:

	ROC % (A: Sep. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2013 )	+	Invested Capital (A: Sep. 2014 ))	/ count )
=	317.074 * ( 1 - 22.84% )	/	( (2838.734	+	2566.309)	/ 2 )
=	244.6542984	/	2702.5215
=	9.05 %

where

	Invested Capital		(A: Sep. 2013 )
=	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	))
=	3450.374	-	411.55	-	( 555.091	-	max(0, 1128.358	-	1328.448	+	555.091	))
=	2838.734

	Invested Capital		(A: Sep. 2014 )
=	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	))
=	3095.852	-	331.585	-	( 197.958	-	max(0, 422.765	-	947.574	+	197.958	))
=	2566.309

International Game Technology's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2014 is calculated as:

	ROC % (Q: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2014 )	+	Invested Capital (Q: Dec. 2014 ))	/ count )
=	205.992 * ( 1 - 32.3% )	/	( (2566.309	+	2667.622)	/ 2 )
=	139.456584	/	2616.9655
=	5.33 %

where

	Invested Capital		(Q: Sep. 2014 )
=	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	))
=	3095.852	-	331.585	-	( 197.958	-	max(0, 422.765	-	947.574	+	197.958	))
=	2566.309

	Invested Capital		(Q: Dec. 2014 )
=	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	))
=	3088.775	-	257.655	-	( 163.498	-	max(0, 352.947	-	886.18	+	163.498	))
=	2667.622

Note: The Operating Income data used here is four times the quarterly (Dec. 2014) data.

International Game Technology (FRA:IGT) 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, International Game Technology's WACC % is 0.00%. International Game Technology's ROC % is 0.00% (calculated using TTM income statement data). International Game Technology 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.

International Game Technology ROC % Related Terms

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International Game Technology (FRA:IGT) Business Description

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International Game Technology was incorporated in Nevada in December 1980. It is a gaming Company specializing in the design, development, manufacture, and marketing of casino-style gaming equipment, systems technology, and game content across multiple platforms land-based, online real-money and social gaming. The Company manages operations in two geographic segments namely North America and International. North America consists of operations in the US and Canada and International encompasses its efforts in all other jurisdictions. The Company has two revenue streams within each business segment gaming operations and product sales. It includes the sales of gaming equipment, systems, services, licensing, and component parts in Product Sales. It provides casino games, gaming equipment and systems technology for land-based and online social gaming and wagering markets under for-sale or revenue sharing arrangements. IGT systems products include infrastructure and applications for casino management, customer relationship management, player management, and server-based gaming. Casino management solutions include integrated modules for machine accounting, patron management, cage and table accounting, ticket-in/ticket-out, bonusing, and table game automation. The Company's competitors include Ainsworth Game Technology Ltd, Aristocrat Leisure Limited, Bally Technologies, Inc., Konami Gaming Inc., Novomatic Group of Companies, and WMS Industries, Inc. At September 30, 2013, the Company held approximately 6,000 patents or patent applications and approximately 4,100 trademarks filed and registered around the world. he manufacture and distribution of casino games, gaming equipment, systems technology, and related services, as well as the operation of casinos, is subject to regulation by a variety of federal, state, international, tribal, and local agencies, with the majority of oversight provided by individual state gaming control boards.