Triquint Semiconductor (FRA:TQS) ROIC % : 13.54% (As of Sep. 2014)

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What is Triquint Semiconductor 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 %. Triquint Semiconductor's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2014 was 13.54%.

As of today (2024-05-08), Triquint Semiconductor's WACC % is 1.99%. Triquint Semiconductor's ROIC % is 0.87% (calculated using TTM income statement data). Triquint Semiconductor earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Triquint Semiconductor ROIC % Historical Data

The historical data trend for Triquint Semiconductor'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.

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Triquint Semiconductor ROIC % Chart

Triquint Semiconductor Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

ROIC %

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3.44

36.95

6.83

-3.84

-4.08

Triquint Semiconductor Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
ROIC %	Get a 7-Day Free Trial															6.79	-3.53	-8.89	3.29	13.54

Competitive Comparison of Triquint Semiconductor's ROIC %

For the Semiconductors subindustry, Triquint Semiconductor'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.

Triquint Semiconductor's ROIC % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Triquint Semiconductor's ROIC % distribution charts can be found below:

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

Triquint Semiconductor ROIC % Calculation

Triquint Semiconductor's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2013 is calculated as:

	ROIC % (A: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2012 )	+	Invested Capital (A: Dec. 2013 ))	/ count )
=	-29.705 * ( 1 - 15.66% )	/	( (610.321	+	617.67)	/ 2 )
=	-25.053197	/	613.9955
=	-4.08 %

where

	Invested Capital		(A: Dec. 2012 )
=	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	))
=	802.903	-	86.696	-	( 105.886	-	max(0, 86.696	-	365.595	+	105.886	))
=	610.321

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	754.278	-	78.919	-	( 57.689	-	max(0, 78.919	-	351.854	+	57.689	))
=	617.67

Triquint Semiconductor's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2014 is calculated as:

	ROIC % (Q: Sep. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2014 )	+	Invested Capital (Q: Sep. 2014 ))	/ count )
=	111.356 * ( 1 - 25.98% )	/	( (580.309	+	636.934)	/ 2 )
=	82.4257112	/	608.6215
=	13.54 %

where

	Invested Capital		(Q: Jun. 2014 )
=	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	))
=	832.716	-	87.928	-	( 164.479	-	max(0, 87.928	-	431.552	+	164.479	))
=	580.309

	Invested Capital		(Q: Sep. 2014 )
=	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	))
=	936.659	-	107.322	-	( 192.403	-	max(0, 107.322	-	493.212	+	192.403	))
=	636.934

Note: The Operating Income data used here is four times the quarterly (Sep. 2014) data.

Triquint Semiconductor (FRA:TQS) 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, Triquint Semiconductor's WACC % is 1.99%. Triquint Semiconductor's ROIC % is 0.87% (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.

Triquint Semiconductor ROIC % Related Terms

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Triquint Semiconductor (FRA:TQS) Business Description

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http://www.triquint.com

Triquint Semiconductor was incorporated in California in 1981 and reincorporated in Delaware on February 12, 1997. The Company is a supplier of high performance modules and components for wireless communications applications. It design, develop and manufacture advanced high-performance RF solutions with gallium arsenide, gallium nitride, bipolar high electron mobility transistor, surface acoustic wave, temperature compensated surface acoustic wave, bulk acoustic wave, copper flip and wafer level packaging technologies for customers worldwide. The Company offers a broad array of filtering, switching and amplification products for RF, microwave and millimeter-wave applications. It utilizes specialized substrate materials and high-performance process technologies such as GaAs, GaN, pseudomorphic high electron mobility transistors ("pHEMT"), GaN high electron mobility transistor, heterojunction bipolar transistors ("HBT"), metal-semiconductor field effect transistor ("MESFET"), bipolar high electron mobility transistor ("BiHEMT"), WLP, CuFlipTM, SAW, TC-SAW and BAW to design and manufacture products which are intended to improve the performance and lower the overall cost of the customers' applications. The Company focuses on three end markets in the electronic communications system industry: mobile devices, networks and defense and aerospace. The Company's products used by customers in the mobile devices end market include transmit modules, power amplifier modules, power amplifier-duplexer modules, duplexers, switches, integrated products and other advanced products to meet the changing needs of the global communications marketplace. The Company uses its in-house technology portfolio to address the low noise, power efficient amplification, low loss switching and efficient and accurate frequency conversion requirements of system designers. Its products support 2G, 3G and 4G standards (global system for mobile communication, general packet radio service, EDGE, code division multiple access, evolution-data optimized WCDMA, high speed packet access, WEDGE, WGPRS, LTE, WLAN and others). In the networks end market, the Company addresses three main submarkets focused on transport, radio access, and catalog products serving multiple applications. Transport is the term used for products, standards and technology used to support higher data rates across wireless or wired infrastructure networks including long haul, metro, backhaul and access applications. This includes optical networking, CATV, FTTH, PtP radio and non-military satellite terminal communication. Radio access includes its products used in all cellular standards of base stations and repeaters. The Company's products used by customers in the defense and aerospace end market include packaged products, die-level integrated circuits, MMICs and, increasingly, multi-chip modules, are used in many diverse communications and phased array radar programs. These programs include major ship-b

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