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TBLA (Taboola.com) ROC % : -3.07% (As of Sep. 2024)


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What is Taboola.com 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 %. Taboola.com's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -3.07%.

As of today (2024-12-13), Taboola.com's WACC % is 11.42%. Taboola.com's ROC % is -2.00% (calculated using TTM income statement data). Taboola.com earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Taboola.com ROC % Historical Data

The historical data trend for Taboola.com'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.

* Premium members only.

Taboola.com ROC % Chart

Taboola.com Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial -10.45 4.01 -25.28 -3.48 -5.97

Taboola.com Quarterly Data
Dec18 Dec19 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 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 -6.11 1.42 -7.29 -1.76 -3.07

Taboola.com ROC % Calculation

Taboola.com'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 )
=-63.737 * ( 1 - -7.18% )/( (1031.81 + 1256.902)/ 2 )
=-68.3133166/1144.356
=-5.97 %

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))
=1529.623 - 272.127 - ( 262.807 - max(0, 368.222 - 593.908+262.807))
=1031.81

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))
=1707.802 - 315.453 - ( 181.833 - max(0, 423.965 - 559.412+181.833))
=1256.902

Taboola.com'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 )
=18.232 * ( 1 - 286.96% )/( (1116.181 + 1106.923)/ 2 )
=-34.0865472/1111.552
=-3.07 %

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))
=1631.522 - 389.07 - ( 182.198 - max(0, 408.533 - 534.804+182.198))
=1116.181

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))
=1662.917 - 420.35 - ( 217.23 - max(0, 442.223 - 577.867+217.23))
=1106.923

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

* 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.


Taboola.com  (NAS:TBLA) 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, Taboola.com's WACC % is 11.42%. Taboola.com's ROC % is -2.00% (calculated using TTM income statement data). Taboola.com 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.


Taboola.com ROC % Related Terms

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Taboola.com Business Description

Traded in Other Exchanges
Address
16 Madison Square West, 7th Floor, New York, NY, USA, 10010
Taboola.com Ltd is a technology company that powers recommendations across the Open Web with an artificial intelligence-based, algorithmic engine. It partners with websites, devices, and mobile apps, collectively referred to as digital properties, to recommend editorial content and advertisements on the Open Web. Geographically it serves Israel, the United Kingdom, Germany, France, Rest of the world whilst it generates the majority of its revenue from the United States.
Executives
Eldad Maniv officer: President and COO 16 MADISON SQ W 7TH FL, NEW YORK NY 10010
Zvi Limon director C/O CEVA, INC., 1943 LANDINGS DRIVE, MOUNTAIN VIEW CA 94043
Richard T Scanlon director 16 MADISON SQ W 7TH FL, NEW YORK NY 10010
Monica Mijaleski director 16 MADISON SQ W 7TH FL, NEW YORK NY 10010
Lynda M Clarizio director 200 N. MILWAUKEE AVENUE, VERNON HILLS IL 60061
Lior Golan officer: Chief Technology Officer 16 MADISON SQ W 7TH FL, NEW YORK NY 10010
Stephen C Walker officer: Chief Financial Officer 16 MADISON SQ W 7TH FL, NEW YORK NY 10010
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