Advanced Digital Broadcast Holding (XSWX:ADBN) ROC % : 3.51% (As of Jun. 2014)

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What is Advanced Digital Broadcast Holding 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 %. Advanced Digital Broadcast Holding's annualized return on capital (ROC %) for the quarter that ended in Jun. 2014 was 3.51%.

As of today (2024-06-21), Advanced Digital Broadcast Holding's WACC % is 0.00%. Advanced Digital Broadcast Holding's ROC % is 0.00% (calculated using TTM income statement data). Advanced Digital Broadcast Holding earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Advanced Digital Broadcast Holding ROC % Historical Data

The historical data trend for Advanced Digital Broadcast Holding'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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Advanced Digital Broadcast Holding ROC % Chart

Advanced Digital Broadcast Holding Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROC %

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14.13

9.45

-4.73

6.79

-7.37

Advanced Digital Broadcast Holding Semi-Annual Data
	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14
ROC %	Get a 7-Day Free Trial					5.82	11.95	5.84	-22.31	3.51

Advanced Digital Broadcast Holding ROC % Calculation

Advanced Digital Broadcast Holding's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2013 is calculated as:

	ROC % (A: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2012 )	+	Invested Capital (A: Dec. 2013 ))	/ count )
=	-6.916 * ( 1 - -1.81% )	/	( (108.708	+	82.46)	/ 2 )
=	-7.0411796	/	95.584
=	-7.37 %

where

	Invested Capital		(A: Dec. 2012 )
=	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	))
=	209.924	-	91.434	-	( 40.793	-	max(0, 135.895	-	145.677	+	40.793	))
=	108.708

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	154.867	-	53.374	-	( 43.415	-	max(0, 89.296	-	108.329	+	43.415	))
=	82.46

Advanced Digital Broadcast Holding's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2014 is calculated as:

	ROC % (Q: Jun. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2013 )	+	Invested Capital (Q: Jun. 2014 ))	/ count )
=	5.342 * ( 1 - 42.94% )	/	( (82.46	+	91.252)	/ 2 )
=	3.0481452	/	86.856
=	3.51 %

where

	Invested Capital		(Q: Dec. 2013 )
=	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	))
=	154.867	-	53.374	-	( 43.415	-	max(0, 89.296	-	108.329	+	43.415	))
=	82.46

	Invested Capital		(Q: Jun. 2014 )
=	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	))
=	169.311	-	62.115	-	( 45.739	-	max(0, 106.654	-	122.598	+	45.739	))
=	91.252

Note: The Operating Income data used here is two times the semi-annual (Jun. 2014) data.

Advanced Digital Broadcast Holding (XSWX:ADBN) 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, Advanced Digital Broadcast Holding's WACC % is 0.00%. Advanced Digital Broadcast Holding's ROC % is 0.00% (calculated using TTM income statement data). Advanced Digital Broadcast Holding 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.

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Advanced Digital Broadcast Holding (XSWX:ADBN) Business Description

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Advanced Digital Broadcast Holding SA was incorporated on July 26, 2004 in the Canton of Geneva. The Company is engaged in the development and sale of equipment, services and software for the digital television and broadband data communication industry, and relies on third party contract manufacturers for the production of equipment. In 2005, the Company made an initial public offering. It develops and delivers diverse products to the worldwide digital television industry, supplying digital set-top boxes across all television transmission platforms such as cable, IPTV, satellite and terrestrial. Its customers include digital television operators, consumer electronics manufacturers and retail distributors of digital set-top boxes. The Company is in system integration, incorporating the industry's middleware, conditional access and hardware technologies and provide technically superior products, service and support, in as short time as possible.

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