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Calnex Solutions (FRA:CSO) ROIC % : -9.13% (As of Sep. 2024)


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What is Calnex Solutions 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 %. Calnex Solutions's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -9.13%.

As of today (2024-12-13), Calnex Solutions's WACC % is 12.52%. Calnex Solutions's ROIC % is -2.98% (calculated using TTM income statement data). Calnex Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Calnex Solutions ROIC % Historical Data

The historical data trend for Calnex 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.

* Premium members only.

Calnex Solutions ROIC % Chart

Calnex Solutions Annual Data
Trend Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROIC %
Get a 7-Day Free Trial 23.97 31.50 34.38 34.69 0.31

Calnex Solutions Semi-Annual Data
Mar18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.12 36.96 -4.94 2.45 -9.13

Competitive Comparison of Calnex Solutions's ROIC %

For the Communication Equipment subindustry, Calnex 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.


Calnex Solutions's ROIC % Distribution in the Hardware Industry

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

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



Calnex Solutions ROIC % Calculation

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

ROIC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=-0.721 * ( 1 - 110.47% )/( (20.381 + 27.954)/ 2 )
=0.0754887/24.1675
=0.31 %

where

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

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-3.508 * ( 1 - 24.89% )/( (27.954 + 29.737)/ 2 )
=-2.6348588/28.8455
=-9.13 %

where

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


Calnex Solutions  (FRA:CSO) 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, Calnex Solutions's WACC % is 12.52%. Calnex Solutions's ROIC % is -2.98% (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.


Calnex Solutions ROIC % Related Terms

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Calnex Solutions Business Description

Traded in Other Exchanges
Address
Oracle Campus, Linlithgow, West Lothian, GBR, EH49 7LR
Calnex Solutions PLC is a provider of test and measurement solutions for the telecommunications sector. It designs, produces, and markets test instrumentation and solutions for network synchronization and network emulation. The company offers its equipment to network operators, network providers, systems suppliers, laboratories, and network infrastructures. The company operates in North Asia, Americas and Rest of the world, out of which it derives maximum revenue from Americas.

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