Internet Gold-Golden Lines (XTAE:IGLD-M) ROC % : 0.00% (As of Jun. 2023)

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What is Internet Gold-Golden Lines 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 %. Internet Gold-Golden Lines's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was 0.00%.

As of today (2024-05-26), Internet Gold-Golden Lines's WACC % is 10.71%. Internet Gold-Golden Lines's ROC % is 0.00% (calculated using TTM income statement data). Internet Gold-Golden Lines earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Internet Gold-Golden Lines ROC % Historical Data

The historical data trend for Internet Gold-Golden Lines'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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Internet Gold-Golden Lines ROC % Chart

Internet Gold-Golden Lines Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

ROC %

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7.56

4.73

6.24

7.33

-31.98

Internet Gold-Golden Lines Quarterly Data
	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Jun22	Jun23
ROC %	Get a 7-Day Free Trial															-	-	-	-	-

Internet Gold-Golden Lines ROC % Calculation

Internet Gold-Golden Lines's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2019 is calculated as:

	ROC % (A: Dec. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2018 )	+	Invested Capital (A: Dec. 2019 ))	/ count )
=	1536 * ( 1 - 320.35% )	/	( (20423	+	742)	/ 2 )
=	-3384.576	/	10582.5
=	-31.98 %

where

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	19514	-	1576	-	( 3020	-	max(0, 7647	-	5162	+	3020	))
=	20423

	Invested Capital		(A: Dec. 2019 )
=	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	))
=	335	-	64	-	( 334	-	max(0, 806	-	335	+	334	))
=	742

Internet Gold-Golden Lines's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	0 * ( 1 - 0% )	/	( (0	+	0.015)	/ 1 )
=	0	/	0.015
=	0.00 %

where

	Invested Capital		(Q: 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	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	))
=	6.366	-	0.118	-	( 6.233	-	max(0, 0.118	-	6.366	+	6.233	))
=	0.015

Note: The Operating Income data used here is four times the quarterly (Jun. 2023) data.

Internet Gold-Golden Lines (XTAE:IGLD-M) 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, Internet Gold-Golden Lines's WACC % is 10.71%. Internet Gold-Golden Lines's ROC % is 0.00% (calculated using TTM income statement data). Internet Gold-Golden Lines 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.

Internet Gold-Golden Lines ROC % Related Terms

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Internet Gold-Golden Lines (XTAE:IGLD-M) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Internet Gold-Golden Lines Ltd (XTAE:IGLD-M) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2 Dov Friedman Street, Ramat Gan, ISR, 5250301

Website

http://www.igld.com

Internet Gold-Golden Lines Ltd is communications group in Israel. The company's principal subsidiary is B Communications, through which it owns the controlling interest in Bezeq which is a telecommunications service provider. Bezeq mainly provides communications services in Israel offering a broad range of telecommunications operations and services, including domestic fixed-line, cellular and international communication services, Internet services, multi-channel television, television and radio broadcasts, satellite broadcasts, customer call centers, maintenance and development of communications infrastructures. It also provides communications services to other communications providers and the supply and maintenance of equipment on customer premises.

Internet Gold-Golden Lines (XTAE:IGLD-M) Headlines

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