GURUFOCUS.COM » STOCK LIST » Technology » Software » Tracsis PLC (AQSE:TRCS.GB) » Definitions » ROIC %

Tracsis (AQSE:TRCS.GB) ROIC % : 2.80% (As of Jul. 2024)


View and export this data going back to . Start your Free Trial

What is Tracsis ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Tracsis's annualized return on invested capital (ROIC %) for the quarter that ended in Jul. 2024 was 2.80%.

As of today (2024-12-12), Tracsis's WACC % is 10.47%. Tracsis's ROIC % is 0.64% (calculated using TTM income statement data). Tracsis earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Tracsis ROIC % Historical Data

The historical data trend for Tracsis's ROIC % 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.

Tracsis ROIC % Chart

Tracsis Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23 Jul24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.82 3.68 2.40 8.20 0.60

Tracsis Semi-Annual Data
Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24 Jul24
ROIC % 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 2.44 4.39 13.77 -1.57 2.80

Competitive Comparison of Tracsis's ROIC %

For the Software - Application subindustry, Tracsis's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tracsis's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, Tracsis's ROIC % distribution charts can be found below:

* The bar in red indicates where Tracsis's ROIC % falls into.



Tracsis ROIC % Calculation

Tracsis's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jul. 2024 is calculated as:

ROIC % (A: Jul. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jul. 2023 ) + Invested Capital (A: Jul. 2024 ))/ count )
=0.967 * ( 1 - 50.95% )/( (80.45 + 78.341)/ 2 )
=0.4743135/79.3955
=0.60 %

where

Tracsis's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jul. 2024 is calculated as:

ROIC % (Q: Jul. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2024 ) + Invested Capital (Q: Jul. 2024 ))/ count )
=2.55 * ( 1 - 22.72% )/( (62.447 + 78.341)/ 2 )
=1.97064/70.394
=2.80 %

where

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


Tracsis  (AQSE:TRCS.GB) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Tracsis's WACC % is 10.47%. Tracsis's ROIC % is 0.64% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


Tracsis ROIC % Related Terms

Thank you for viewing the detailed overview of Tracsis's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Tracsis Business Description

Traded in Other Exchanges
Address
Discovery Way, Nexus, Leeds, GBR, LS2 3AA
Tracsis PLC is engaged in the business of software development and consultancy for the rail industry. It is organized into two main business segments: Rail Technology and Services and Data, Analytics, Consultancy & Events. The Rail Technology and Services division includes software, consultancy, and remote condition monitoring technology and also includes Ontrac. The Data, Analytics, Consultancy & Events division which derives majority revenue, focuses on data capture and analytics, geographic information systems, earth observation, consultancy and event traffic management within a range of transport and pedestrian rich environments. The company currently operates in three geographical markets: the United Kingdom, Ireland, Europe, North America Australia, and the Rest of the world.

Tracsis Headlines

No Headlines