ESYL (Easylink Solutions) ROIC %: -27.40% (As of Nov. 2007)


What is Easylink Solutions ROIC %?

Easylink Solutions ESYL ROIC % is -27.40% as of Nov. 2007.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Easylink Solutions's annualized return on invested capital (ROIC %) for the quarter that ended in Nov. 2007 was -27.40%.

As of today (2026-06-26), Easylink Solutions's WACC % is 0.00%. Easylink Solutions's ROIC % is 0.00% (calculated using TTM income statement data). Easylink Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Easylink Solutions  (OTCPK:ESYL) 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, Easylink Solutions's WACC % is 0.00%. Easylink Solutions's ROIC % is 0.00% (calculated using TTM income statement data). Easylink Solutions 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.

Easylink Solutions ROIC % Related Terms

Easylink Solutions ROIC % Historical Data

* Premium members only.

The historical data trend for Easylink Solutions'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.

Easylink Solutions ROIC % Chart

Easylink Solutions Annual Data
Trend Aug05 Aug06
ROIC %
-133.33 -300.00

Easylink Solutions Quarterly Data
Aug05 Nov05 Feb06 May06 Aug06 Nov06 Feb07 May07 Aug07 Nov07
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only -429.85 -172.04 -35.05 -318.93 -27.40

ESYL vs SYSXD: ROIC % Comparison

For the Information Technology Services subindustry, Easylink Solutions'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.

Easylink Solutions ROIC % vs Software Industry

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

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


Easylink Solutions ROIC % Calculation

Easylink Solutions's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Aug. 2006 is calculated as:

ROIC % (A: Aug. 2006 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Aug. 2005 ) + Invested Capital (A: Aug. 2006 ))/ count )
=-0.075 * ( 1 - 0% )/( (0.012 + 0.038)/ 2 )
=-0.075/0.025
=-300.00 %

where

Invested Capital(A: Aug. 2005 )
=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))
=0.102 - 0.032 - ( 0.076 - max(0, 0.044 - 0.102+0.076))
=0.012

Invested Capital(A: Aug. 2006 )
=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))
=0.057 - 0.034 - ( 0.007 - max(0, 0.072 - 0.057+0.007))
=0.038

Easylink Solutions's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Nov. 2007 is calculated as:

ROIC % (Q: Nov. 2007 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2007 ) + Invested Capital (Q: Nov. 2007 ))/ count )
=-0.488 * ( 1 - 0% )/( (1.65 + 1.912)/ 2 )
=-0.488/1.781
=-27.40 %

where

Invested Capital(Q: Aug. 2007 )
=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))
=0.208 - 0.094 - ( 0.198 - max(0, 1.744 - 0.208+0.198))
=1.65

Invested Capital(Q: Nov. 2007 )
=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))
=0.215 - 0.148 - ( 0.05 - max(0, 1.9 - 0.055+0.05))
=1.912

Note: The Operating Income data used here is four times the quarterly (Nov. 2007) 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 -27.40% mean?
Easylink Solutions (ESYL) has a ROIC % of -27.40% as of Nov. 2007. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Easylink Solutions and its competitors.
Is Easylink Solutions' ROIC % too high?
Easylink Solutions' current ROIC % is -27.40%.
How does Easylink Solutions' ROIC % compare to SYSXD?
Easylink Solutions' ROIC % of -27.40% can be compared against companies in the Software industry. The industry median ROIC % is 3.11. 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 3.11, based on 2,830 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. 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 Easylink Solutions and its competitors. For the Software industry, the median ROIC % is 3.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Easylink Solutions's current ROIC % is -27.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Easylink Solutions stock overvalued right now?
Easylink Solutions (ESYL) has a current ROIC % of -27.40%. The current ROIC % is -27.40%. 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 Easylink Solutions (ESYL), the current ROIC % is -27.40% as of Nov. 2007. 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.

Easylink Solutions Business Description

Address 58 Derech Ako, Kiryat Bialik, ISR, 2709361
Easylink Solutions Corp, through its subsidiary, a fintech technology company, develops next-generation fintech digital banking and blockchain technology software solutions. It provides versatile, user-friendly tools to support financial projects, such as digital banking, blockchain applications, community initiatives, and modernizing traditional financial systems through digital and blockchain frameworks. The Group also focuses on developing financial security solutions to provide safety technology for various sectors, including banking, hedge funds, credit cards, clearing systems, etc. It has one operating and reportable segment, the development of technology for software platforms for banking, finance, blockchain, and digital assets.