Integrated Research (Integrated Research) ROIC % : 34.91% (As of Dec. 2023)

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What is Integrated Research 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 %. Integrated Research's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 34.91%.

As of today (2024-05-25), Integrated Research's WACC % is 20.19%. Integrated Research's ROIC % is -3.55% (calculated using TTM income statement data). Integrated Research earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Integrated Research ROIC % Historical Data

The historical data trend for Integrated Research'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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Integrated Research ROIC % Chart

Integrated Research Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROIC %

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12.56

14.71

-2.82

11.29

-15.09

Integrated Research Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial															-44.88	-1.57	4.12	-35.16	34.91

Competitive Comparison of Integrated Research's ROIC %

For the Software - Application subindustry, Integrated Research'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.

Integrated Research's ROIC % Distribution in the Software Industry

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

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

Integrated Research ROIC % Calculation

Integrated Research's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROIC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-8.63 * ( 1 - 0.24% )	/	( (71.669	+	42.454)	/ 2 )
=	-8.609288	/	57.0615
=	-15.09 %

where

	Invested Capital		(A: Jun. 2022 )
=	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	))
=	87.452	-	7.119	-	( 8.664	-	max(0, 21.269	-	44.527	+	8.664	))
=	71.669

	Invested Capital		(A: Jun. 2023 )
=	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	))
=	60.209	-	5.303	-	( 12.452	-	max(0, 18.262	-	42.315	+	12.452	))
=	42.454

Integrated Research's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	16.492 * ( 1 - 6.72% )	/	( (42.454	+	45.682)	/ 2 )
=	15.3837376	/	44.068
=	34.91 %

where

	Invested Capital		(Q: Jun. 2023 )
=	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	))
=	60.209	-	5.303	-	( 12.452	-	max(0, 18.262	-	42.315	+	12.452	))
=	42.454

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	64.802	-	4.706	-	( 14.414	-	max(0, 16.039	-	42.121	+	14.414	))
=	45.682

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Integrated Research (OTCPK:IREHF) 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, Integrated Research's WACC % is 20.19%. Integrated Research's ROIC % is -3.55% (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.

Integrated Research ROIC % Related Terms

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Integrated Research (Integrated Research) Business Description

Industry

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IRI:Australia

Address

100 Pacific Highway, Level 9, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.ir.com

Integrated Research Ltd is one of the providers of proactive experience management solutions for critical IT infrastructure, payments, and communications ecosystems. Many banks, airlines, and telecommunications companies rely on IR Prognosis to provide business-critical insights and ensure continuity-critical systems deliver high availability and performance for millions of their customers across the globe. The business is spread across the Americas, Europe, and the Asia Pacific. The company generates maximum revenue from the Americas.