Tele Columbus AG (LTS:0R50) ROC % : -3.70% (As of Mar. 2024)

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What is Tele Columbus AG 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 %. Tele Columbus AG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -3.70%.

As of today (2024-06-12), Tele Columbus AG's WACC % is 5.74%. Tele Columbus AG's ROC % is -3.44% (calculated using TTM income statement data). Tele Columbus AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Tele Columbus AG ROC % Historical Data

The historical data trend for Tele Columbus AG'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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Tele Columbus AG ROC % Chart

Tele Columbus AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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1.81

1.09

-0.45

-2.93

-2.73

Tele Columbus AG Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-2.09	-1.20	-2.52	-5.84	-3.70

Tele Columbus AG ROC % Calculation

Tele Columbus AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-61.001 * ( 1 - -0.18% )	/	( (1932.171	+	2546.959)	/ 2 )
=	-61.1108018	/	2239.565
=	-2.73 %

where

	Invested Capital		(A: Dec. 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	))
=	2022.544	-	108.312	-	( 104.54	-	max(0, 210.057	-	192.118	+	104.54	))
=	1932.171

	Invested Capital		(A: 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	))
=	2006.123	-	91.634	-	( 23.16	-	max(0, 772.872	-	140.402	+	23.16	))
=	2546.959

Tele Columbus AG's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-89.036 * ( 1 - 4.14% )	/	( (2546.959	+	2064.137)	/ 2 )
=	-85.3499096	/	2305.548
=	-3.70 %

where

	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	))
=	2006.123	-	91.634	-	( 23.16	-	max(0, 772.872	-	140.402	+	23.16	))
=	2546.959

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	2158.77	-	94.867	-	( 101.963	-	max(0, 230.731	-	230.497	+	101.963	))
=	2064.137

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Tele Columbus AG (LTS:0R50) 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, Tele Columbus AG's WACC % is 5.74%. Tele Columbus AG's ROC % is -3.44% (calculated using TTM income statement data). Tele Columbus AG 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.

Tele Columbus AG ROC % Related Terms

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Tele Columbus AG (LTS:0R50) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Tele Columbus AG (LTS:0R50) » Definitions » ROC %

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TC1:Germany

Address

Kaiserin-Augusta-Allee 108, Berlin, DEU, 10553

Website

https://www.telecolumbus.com

Tele Columbus AG is a triple-play telecommunications company. It derives revenue from TV, the Internet, cellphone, and voice services. The group operates through two main segments: TV and Internet, and telephony. The company's TV segment offers cable TV services to customers. The majority of revenue stems from this segment. Internet and telephony derive revenue from the provision of broadband Internet access as well as fixed-line and mobile telephony services to customers. The company is an owner of telecommunications infrastructure. The company generates the vast majority of its revenue in Germany.

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