CNWT (Cistera Networks) ROIC %: 0.13% (As of Sep. 2010)


What is Cistera Networks ROIC %?

Cistera Networks CNWT ROIC % is 0.13% as of Sep. 2010.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Cistera Networks's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2010 was 0.13%.

As of today (2026-06-29), Cistera Networks's WACC % is 0.00%. Cistera Networks's ROIC % is 0.00% (calculated using TTM income statement data). Cistera Networks earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cistera Networks  (OTCPK:CNWT) 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, Cistera Networks's WACC % is 0.00%. Cistera Networks's ROIC % is 0.00% (calculated using TTM income statement data). Cistera Networks 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 %, 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.

Cistera Networks ROIC % Related Terms

Cistera Networks ROIC % Historical Data

* Premium members only.

The historical data trend for Cistera Networks'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.

Cistera Networks ROIC % Chart

Cistera Networks Annual Data
Trend Mar01 Mar02 Mar03 Mar04 Mar05 Mar06 Mar07 Mar08 Mar09 Mar10
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -124.07 -34.72 -84.55 -43.03 -2.05

Cistera Networks Quarterly Data
Dec05 Mar06 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10
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 23.95 -5.29 -24.27 2.23 0.13

CNWT vs INLX, VEII, FDBL: ROIC % Comparison

For the Software - Application subindustry, Cistera Networks'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.

Cistera Networks ROIC % vs Software Industry

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

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


Cistera Networks ROIC % Calculation

Cistera Networks's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2010 is calculated as:

ROIC % (A: Mar. 2010 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2009 ) + Invested Capital (A: Mar. 2010 ))/ count )
=-0.072 * ( 1 - % )/( (3.925 + 3.089)/ 2 )
=-0.072/3.507
=-2.05 %

where

Invested Capital(A: Mar. 2009 )
=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))
=2.39 - 2.222 - ( 0.001 - max(0, 4.072 - 0.315+0.001))
=3.925

Invested Capital(A: Mar. 2010 )
=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))
=2.047 - 2.244 - ( 0.013 - max(0, 3.647 - 0.361+0.013))
=3.089

Cistera Networks's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2010 is calculated as:

ROIC % (Q: Sep. 2010 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2010 ) + Invested Capital (Q: Sep. 2010 ))/ count )
=0.004 * ( 1 - % )/( (3.015 + 3.172)/ 2 )
=0.004/3.0935
=0.13 %

where

Invested Capital(Q: Jun. 2010 )
=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))
=1.959 - 2.219 - ( 0.006 - max(0, 3.587 - 0.312+0.006))
=3.015

Invested Capital(Q: Sep. 2010 )
=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))
=1.926 - 1.415 - ( 0.008 - max(0, 2.935 - 0.274+0.008))
=3.172

Note: The Operating Income data used here is four times the quarterly (Sep. 2010) data. The tax rate is limited to between 0% and 100%.

* 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 ROIC % →
What does a ROIC % of 0.13% mean?
Cistera Networks (CNWT) has a ROIC % of 0.13% as of Sep. 2010. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Cistera Networks and its competitors.
Is Cistera Networks' ROIC % too high?
Cistera Networks' current ROIC % is 0.13%. The Software industry median ROIC % is 3.03. Cistera Networks' value of 0.13% is 95.7% below this industry median.
How does Cistera Networks' ROIC % compare to INLX and VEII?
Cistera Networks' ROIC % of 0.13% can be compared against companies in the Software industry. The industry median ROIC % is 3.03. Cistera Networks' value of 0.13% is 95.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Software company?
The median ROIC % among Software companies is 3.03, based on 2,827 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cistera Networks's current ROIC % of 0.13% is 95.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Cistera Networks and its competitors. For the Software industry, the median ROIC % is 3.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cistera Networks's current ROIC % is 0.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cistera Networks stock overvalued right now?
Cistera Networks (CNWT) has a current ROIC % of 0.13%. The current ROIC % is 0.13% and 95.7% below the Software industry median of 3.03. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Cistera Networks (CNWT), the current ROIC % is 0.13% as of Sep. 2010. 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.

Cistera Networks Business Description

Address 5045 Lorimar Drive, Suite 180, Plano, TX, USA, 75093 5707
Cistera Networks Inc is a provider of cloud business communications solutions. It acts as a global provider of call recording, speech analytics and business intelligence solutions via on-site server or the cloud.