Avanti Communications Group (LSE:AVN) ROC %: -6.53% (As of Jun. 2020)


What is Avanti Communications Group ROC %?

Avanti Communications Group LSE:AVN -87.07% ROC % is -6.53% as of Jun. 2020. The stock has 7 warning signs investors should review.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Avanti Communications Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2020 was -6.53%.

As of today (2026-06-26), Avanti Communications Group's WACC % is 11.03%. Avanti Communications Group's ROC % is -6.10% (calculated using TTM income statement data). Avanti Communications Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Avanti Communications Group  (LSE:AVN) 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, Avanti Communications Group's WACC % is 11.03%. Avanti Communications Group's ROC % is -6.10% (calculated using TTM income statement data). Avanti Communications Group 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.

Avanti Communications Group ROC % Related Terms

Avanti Communications Group ROC % Historical Data

* Premium members only.

The historical data trend for Avanti Communications Group'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.

Avanti Communications Group ROC % Chart

Avanti Communications Group Annual Data
Trend Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Dec19
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.91 -4.76 -5.25 -8.86 -6.49

Avanti Communications Group Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Jun19 Dec19 Jun20
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -7.52 -3.21 -8.30 -5.39 -6.53

Avanti Communications Group ROC % Calculation

Avanti Communications Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2019 is calculated as:

ROC % (A: Dec. 2019 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2017 ) + Invested Capital (A: Dec. 2019 ))/ count )
=-41.812 * ( 1 - 0% )/( (598.792 + 690.363)/ 2 )
=-41.812/644.5775
=-6.49 %

where

Invested Capital(A: Jun. 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))
=630.892 - 13.746 - ( 25.539 - max(0, 56.544 - 74.898+25.539))
=598.792

Invested Capital(A: Dec. 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))
=581.635 - 16.023 - ( 9.003 - max(0, 180.221 - 55.47+9.003))
=690.363

Avanti Communications Group's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2020 is calculated as:

ROC % (Q: Jun. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2019 ) + Invested Capital (Q: Jun. 2020 ))/ count )
=-45.224 * ( 1 - 0% )/( (690.363 + 694.092)/ 2 )
=-45.224/692.2275
=-6.53 %

where

Invested Capital(Q: Dec. 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))
=581.635 - 16.023 - ( 9.003 - max(0, 180.221 - 55.47+9.003))
=690.363

Invested Capital(Q: Jun. 2020 )
=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))
=575.12 - 16.459 - ( 17.738 - max(0, 191.121 - 55.69+17.738))
=694.092

Note: The Operating Income data used here is two times the semi-annual (Jun. 2020) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -6.53% mean?
Avanti Communications Group (LSE:AVN) has a ROC % of -6.53% as of Jun. 2020. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Avanti Communications Group and its competitors.
Is Avanti Communications Group's ROC % too high?
Avanti Communications Group's current ROC % is -6.53%.
How does Avanti Communications Group's ROC % compare to FNGR and FTRCQ?
Avanti Communications Group's ROC % of -6.53% can be compared against companies in the Telecommunication Services industry. The industry median ROC % is 4.54. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Telecommunication Services company?
The median ROC % among Telecommunication Services companies is 4.54, based on 366 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Avanti Communications Group and its competitors. For the Telecommunication Services industry, the median ROC % is 4.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avanti Communications Group's current ROC % is -6.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avanti Communications Group stock overvalued right now?
Avanti Communications Group (LSE:AVN) has a current ROC % of -6.53%. The current ROC % is -6.53%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Avanti Communications Group (LSE:AVN), the current ROC % is -6.53% as of Jun. 2020. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Avanti Communications Group Business Description

Address 20 Black Friars Lane, Cobham House, London, GBR, EC4V 6EB
Avanti Communications Group PLC sells managed satellite data communications products to service providers on a wholesale basis. It uses the high-frequency Ka-band spectrum. The company's operating segments include Bandwidth and services, and Equipment. Its network can provide download speeds of up to 380Mbps. The company generates its revenues from the utilisation of its space assets, namely its spectrum rights and satellites. These assets include its spectrum rights, satellites, intellectual property, and ground station assets. It serves customers across Europe, the Middle East, and Africa.