RBBN (Ribbon Communications) ROCE %: -14.19% (As of Mar. 2026)

What is Ribbon Communications ROCE %?

Ribbon Communications RBBN -1.34% 56 ROCE % is -14.19% as of Mar. 2026. GuruFocus rates RBBN with a GF Score™ of 56/100 and a GF Value™ of $2.98 (Modestly Undervalued). The stock has 3 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. Ribbon Communications's annualized ROCE % for the quarter that ended in Mar. 2026 was -14.19%.

Ribbon Communications (NAS:RBBN) 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.

Ribbon Communications ROCE % Related Terms

Ribbon Communications ROCE % Historical Data

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The historical data trend for Ribbon Communications'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.

Ribbon Communications ROCE % Chart

Ribbon Communications Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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-17.30

-9.63

-3.25

-1.46

-0.02

Ribbon Communications Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															-7.79	1.15	1.37	5.07	-14.19

56GF Score

Ribbon Communications Inc RBBN

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Ribbon Communications ROCE % Calculation

Ribbon Communications's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	-0.185	/	( ( (1162.554 - 328.873)	+	(1212.255 - 315.473) )	/ 2 )
	=	-0.185	/	( (833.681	+	896.782)	/ 2 )
	=	-0.185	/	865.2315
	=	-0.02 %

Ribbon Communications's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	-124.724	/	( ( (1212.255 - 315.473)	+	(1159.702 - 298.835) )	/ 2 )
	=	-124.724	/	( ( 896.782	+	860.867 )	/ 2 )
	=	-124.724	/	878.8245
	=	-14.19 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -14.19% mean?

Ribbon Communications (RBBN) has a ROCE % of -14.19% as of Mar. 2026.

Is Ribbon Communications' ROCE % too high?

Ribbon Communications' current ROCE % is -14.19%. Overall, Ribbon Communications has a GF Score™ of 56/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Ribbon Communications' ROCE % compare to PUBM and CRNC?

Ribbon Communications' ROCE % of -14.19% can be compared against companies in the Software industry. The industry median ROCE % is 5.27. 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 Software company?

The median ROCE % among Software companies is 5.27, based on 2,713 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 Software industry, the median ROCE % is 5.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ribbon Communications's current ROCE % is -14.19%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Ribbon Communications stock overvalued right now?

Based on GuruFocus' analysis, Ribbon Communications (RBBN) is currently considered Modestly Undervalued. The stock's GF Value™ is $2.98, compared to a current price of $2.22 — trading 25.7% below its estimated fair value. The current ROCE % is -14.19%. Ribbon Communications' overall GF Score™ is 56/100 with 3 warning signs to review. 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 Ribbon Communications (RBBN), the current ROCE % is -14.19% as of Mar. 2026. 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.

Is Ribbon Communications (RBBN) Overvalued in 2026?

Based on GuruFocus' analysis, Ribbon Communications stock appears to be undervalued. The current stock price of $2.22 is trading 25.7% below its estimated GF Value™ of $2.98. GuruFocus considers Ribbon Communications to be Modestly Undervalued.

Key valuation signals for RBBN:

ROCE %: -14.19%
GF Value™: $2.98 vs. price of $2.22 (25.7% below fair value)
GF Score™: 56/100 with 3 warning signs

No single metric tells the full story. See the RBBN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Ribbon Communications Business Description

Industry Technology Software

Comparable Companies PUBM CRNC ALIT MFI OOMA SPT GLOO PAR VTEX BLND XTER:SAP CRM SHOP UBER NOW ADBE CDNS INTU ADP SNOW

Other Exchanges NU42:Germany

Address 6500 Chase Oaks Boulevard, Suite 100, Plano, TX, USA, 75023

Website https://www.ribboncommunications.com

Ribbon Communications Inc provides communications technology to service providers and enterprises, offering software and high-performance hardware products, network solutions, and services for secure data and voice communications, as well as high-bandwidth networking for residential and enterprise customers across industries such as finance, education, government, utilities, and transportation. It operates through two segments: Cloud and Edge, which generate maximum revenue and deliver software-centric, cloud-native solutions for VoIP, VoLTE, VoNR, and unified communications, and IP Optical Networks, which support growing telecommunications traffic from 5G, distributed cloud computing, and other applications. The Company generates the majority of its revenue from the United States.

56GF Score

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$2.22

Price

$2.98

GF Value

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