Mobile Streams (LSE:MOS) ROC % : -143.37% (As of Dec. 2023)

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What is Mobile Streams 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 %. Mobile Streams's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -143.37%.

As of today (2024-05-27), Mobile Streams's WACC % is -3.35%. Mobile Streams's ROC % is -364.13% (calculated using TTM income statement data). Mobile Streams earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mobile Streams ROC % Historical Data

The historical data trend for Mobile Streams'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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Mobile Streams ROC % Chart

Mobile Streams Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

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-76.62

-347.58

-137.31

-178.43

-563.80

Mobile Streams Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															-96.47	-239.40	-266.09	-664.99	-143.37

Mobile Streams ROC % Calculation

Mobile Streams's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-3.084 * ( 1 - 0% )	/	( (0.916	+	0.178)	/ 2 )
=	-3.084	/	0.547
=	-563.80 %

where

	Invested Capital		(A: Jun. 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	))
=	2.693	-	0.389	-	( 1.675	-	max(0, 0.449	-	1.837	+	1.675	))
=	0.916

	Invested Capital		(A: 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	))
=	1.061	-	0.35	-	( 0.913	-	max(0, 0.528	-	1.061	+	0.913	))
=	0.178

Mobile Streams's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-0.6 * ( 1 - 0% )	/	( (0.178	+	0.659)	/ 2 )
=	-0.6	/	0.4185
=	-143.37 %

where

	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	))
=	1.061	-	0.35	-	( 0.913	-	max(0, 0.528	-	1.061	+	0.913	))
=	0.178

	Invested Capital		(Q: Dec. 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	))
=	1.561	-	0.565	-	( 0.337	-	max(0, 0.605	-	1.139	+	0.337	))
=	0.659

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Mobile Streams (LSE:MOS) 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, Mobile Streams's WACC % is -3.35%. Mobile Streams's ROC % is -364.13% (calculated using TTM income statement data). Mobile Streams 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.

Mobile Streams ROC % Related Terms

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Mobile Streams (LSE:MOS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Mobile Streams PLC (LSE:MOS) » Definitions » ROC %

Comparable Companies

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Address

125 Wood Street, London, GBR, EC2V 7AW

Website

http://www.mobilestreams.com

Mobile Streams PLC is a mobile media company. The company derives the revenue from two principal business activities that are the sale of mobile content through Multi-National Organisations (Mobile Operator Services) and the provision of data insight and intelligence platforms and services (Other Service Fees). The company has Europe, North America, Latin America, and Asia Pacific geographical segments. It derives the revenue from two principal business activities: the sale of mobile content through Multi-National Organisations (Mobile Operator Services) and the provision of data insight and intelligence platforms and services (Other Service Fees).