TheStreet (FRA:THSN) ROC % : -56.17% (As of Jun. 2019)

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What is TheStreet 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 %. TheStreet's annualized return on capital (ROC %) for the quarter that ended in Jun. 2019 was -56.17%.

As of today (2024-05-16), TheStreet's WACC % is 0.00%. TheStreet's ROC % is 0.00% (calculated using TTM income statement data). TheStreet earns returns that do not match up to its cost of capital. It will destroy value as it grows.

TheStreet ROC % Historical Data

The historical data trend for TheStreet'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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TheStreet ROC % Chart

TheStreet Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

ROC %

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-4.81

-6.93

-8.03

0.32

-2.77

TheStreet Quarterly Data
	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19
ROC %	Get a 7-Day Free Trial															-4.87	-6.83	-2.37	-15.90	-56.17

TheStreet ROC % Calculation

TheStreet's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2018 is calculated as:

	ROC % (A: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2017 )	+	Invested Capital (A: Dec. 2018 ))	/ count )
=	-6.923 * ( 1 - 76.7% )	/	( (64.184	+	52.223)	/ 2 )
=	-1.613059	/	58.2035
=	-2.77 %

where

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	58.314	-	4.808	-	( 9.874	-	max(0, 26.189	-	15.511	+	9.874	))
=	64.184

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	75.367	-	5.941	-	( 32.548	-	max(0, 25.173	-	42.376	+	32.548	))
=	52.223

TheStreet's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2019 is calculated as:

	ROC % (Q: Jun. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2019 )	+	Invested Capital (Q: Jun. 2019 ))	/ count )
=	-10.3 * ( 1 - 0% )	/	( (18.699	+	17.978)	/ 2 )
=	-10.3	/	18.3385
=	-56.17 %

where

	Invested Capital		(Q: Mar. 2019 )
=	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	))
=	118.692	-	6.088	-	( 104.422	-	max(0, 17.972	-	111.877	+	104.422	))
=	18.699

	Invested Capital		(Q: Jun. 2019 )
=	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	))
=	32.968	-	5.693	-	( 21.526	-	max(0, 18.693	-	27.99	+	21.526	))
=	17.978

Note: The Operating Income data used here is four times the quarterly (Jun. 2019) data.

TheStreet (FRA:THSN) 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, TheStreet's WACC % is 0.00%. TheStreet's ROC % is 0.00% (calculated using TTM income statement data). TheStreet 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.

TheStreet ROC % Related Terms

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TheStreet (FRA:THSN) Business Description

Industry

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Address

14 Wall Street, 15th Floor, New York, NY, USA, 10005

Website

http://www.thestreet.com

TheStreet Inc is a US-based financial news and information provider. Its business-to-business (B2B) and business-to-consumer (B2C) content and products provide individual and institutional investors, advisors and dealmakers with actionable information from the worlds of finance and business. The company's B2B products provide dealmakers, their advisers and institutional investors with news, data, and analysis of mergers and acquisitions and corporate actions, relationship mapping services, and competitive bank rate data. Its B2C business includes free content and houses premium subscription products. The company has three reportable segments: TheDeal/BoardEx (B2B), RateWatch and B2C. Revenue generated by the company includes subscription fees charged to institutional and retail customers.

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