Avanti Communications Group (LSE:AVN) ROCE %: -13.39% (As of Jun. 2020)


What is Avanti Communications Group ROCE %?

Avanti Communications Group LSE:AVN -87.07% ROCE % is -13.39% as of Jun. 2020. The stock has 7 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Avanti Communications Group's annualized ROCE % for the quarter that ended in Jun. 2020 was -13.39%.

Avanti Communications Group  (LSE:AVN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Avanti Communications Group ROCE % Related Terms

Avanti Communications Group ROCE % Historical Data

* Premium members only.

The historical data trend for Avanti Communications Group's ROCE % 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.

Avanti Communications Group ROCE % Chart

Avanti Communications Group Annual Data
Trend Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Dec19
ROCE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.23 -4.18 -3.21 -0.89 -17.08

Avanti Communications Group Semi-Annual Data
Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Jun19 Dec19 Jun20
ROCE % 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 -7.91 66.03 -10.10 -21.36 -13.39

Avanti Communications Group ROCE % Calculation

Avanti Communications Group's annualized ROCE % for the fiscal year that ended in Dec. 2019 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Dec. 2019 )  (A: Jun. 2017 )(A: Dec. 2019 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Dec. 2019 )  (A: Jun. 2017 )(A: Dec. 2019 )
=-83.32/( ( (630.892 - 56.544) + (581.635 - 180.221) )/ 2 )
=-83.32/( (574.348+401.414)/ 2 )
=-83.32/487.881
=-17.08 %

Avanti Communications Group's ROCE % of for the quarter that ended in Jun. 2020 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jun. 2020 )  (Q: Dec. 2019 )(Q: Jun. 2020 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jun. 2020 )  (Q: Dec. 2019 )(Q: Jun. 2020 )
=-52.574/( ( (581.635 - 180.221) + (575.12 - 191.121) )/ 2 )
=-52.574/( ( 401.414 + 383.999 )/ 2 )
=-52.574/392.7065
=-13.39 %

(1) Note: The EBIT data used here is two times the semi-annual (Jun. 2020) EBIT 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.

Frequently Asked Questions Learn more about ROCE % →
What does a ROCE % of -13.39% mean?
Avanti Communications Group (LSE:AVN) has a ROCE % of -13.39% as of Jun. 2020.
Is Avanti Communications Group's ROCE % too high?
Avanti Communications Group's current ROCE % is -13.39%.
How does Avanti Communications Group's ROCE % compare to FNGR and FTRCQ?
Avanti Communications Group's ROCE % of -13.39% can be compared against companies in the Telecommunication Services industry. The industry median ROCE % is 7.72. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROCE % for a Telecommunication Services company?
The median ROCE % among Telecommunication Services companies is 7.72, based on 356 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROCE % mean?
A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Telecommunication Services industry, the median ROCE % is 7.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avanti Communications Group's current ROCE % is -13.39%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avanti Communications Group stock overvalued right now?
Avanti Communications Group (LSE:AVN) has a current ROCE % of -13.39%. The current ROCE % is -13.39%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROCE % calculated?
ROCE % is calculated from a company's financial statements. For Avanti Communications Group (LSE:AVN), the current ROCE % is -13.39% as of Jun. 2020. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Avanti Communications Group Business Description

Address 20 Black Friars Lane, Cobham House, London, GBR, EC4V 6EB
Avanti Communications Group PLC sells managed satellite data communications products to service providers on a wholesale basis. It uses the high-frequency Ka-band spectrum. The company's operating segments include Bandwidth and services, and Equipment. Its network can provide download speeds of up to 380Mbps. The company generates its revenues from the utilisation of its space assets, namely its spectrum rights and satellites. These assets include its spectrum rights, satellites, intellectual property, and ground station assets. It serves customers across Europe, the Middle East, and Africa.