AxtelB de CV (STU:4GK) ROC % : 4.53% (As of Sep. 2024)

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What is AxtelB de CV 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 %. AxtelB de CV's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 4.53%.

As of today (2024-12-15), AxtelB de CV's WACC % is 8.62%. AxtelB de CV's ROC % is 293.63% (calculated using TTM income statement data). AxtelB de CV generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

AxtelB de CV ROC % Historical Data

The historical data trend for AxtelB de CV'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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AxtelB de CV ROC % Chart

AxtelB de CV Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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3.92

1.16

2.62

0.30

769.92

AxtelB de CV Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															2.47	3,230.70	1.16	4.49	4.53

AxtelB de CV ROC % Calculation

AxtelB de CV'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 )
=	4536.441 * ( 1 - -24.1% )	/	( (714.131	+	748.279)	/ 2 )
=	5629.723281	/	731.205
=	769.92 %

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	))
=	888.578	-	119.454	-	( 74.704	-	max(0, 157.345	-	212.338	+	74.704	))
=	714.131

	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	))
=	902.679	-	89.185	-	( 65.215	-	max(0, 125.215	-	199.236	+	65.215	))
=	748.279

AxtelB de CV's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	48.364 * ( 1 - 35.94% )	/	( (716.926	+	651.2)	/ 2 )
=	30.9819784	/	684.063
=	4.53 %

where

	Invested Capital		(Q: Jun. 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	))
=	869.161	-	88.911	-	( 63.324	-	max(0, 131.381	-	218.647	+	63.324	))
=	716.926

	Invested Capital		(Q: Sep. 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	))
=	799.476	-	84.221	-	( 64.055	-	max(0, 134.109	-	209.999	+	64.055	))
=	651.2

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

AxtelB de CV (STU:4GK) 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, AxtelB de CV's WACC % is 8.62%. AxtelB de CV's ROC % is 293.63% (calculated using TTM income statement data). AxtelB de CV generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

AxtelB de CV ROC % Related Terms

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AxtelB de CV Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Axtel SAB de CV (STU:4GK) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

AXTELCPO:Mexico 4GK:Germany

Address

Boulevard Diaz Ordaz Km. 3.33 L-1, Col. Unidad San Pedro, San Pedro Garza Garcia, NL, MEX, 66215

Website

http://www.axtelcorp.mx

Axtel SAB de CV is a Mexican based information and communication technology company. The company has two operating segments namely Business operating segment offers communication services such as information, data and Internet technologies, managed through the company's network and infrastructure for both multinational companies, as well as for international and national businesses. Its Government operating segment offers communication services such as information, data and Internet technologies, administered through the company's network and infrastructure, for the federal, state and municipal governments. The company generates maximum revenue from the Business segment. Geographically, it derives majority revenue from the Mexico region.

AxtelB de CV Headlines

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