Motive Television (LSE:MTV) ROIC %: -26.14% (As of Jun. 2015)


What is Motive Television ROIC %?

Motive Television LSE:MTV ROIC % is -26.14% as of Jun. 2015. The stock has 5 warning signs investors should review.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Motive Television's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2015 was -26.14%.

As of today (2026-07-01), Motive Television's WACC % is 0.00%. Motive Television's ROIC % is 0.00% (calculated using TTM income statement data). Motive Television earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Motive Television  (LSE:MTV) 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, Motive Television's WACC % is 0.00%. Motive Television's ROIC % is 0.00% (calculated using TTM income statement data). Motive Television 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.


Motive Television ROIC % Related Terms


Motive Television ROIC % Historical Data

* Premium members only.

The historical data trend for Motive Television'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.

Motive Television ROIC % Chart

Motive Television Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -48.77 -27.83 -22.16 -18.24 -124.48

Motive Television Semi-Annual Data
Jun06 Dec06 Jun07 Dec07 Jun08 Dec08 Jun09 Dec09 Jun10 Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15
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 -20.01 -18.17 -20.00 -220.07 -26.14

Motive Television ROIC % Competitor Comparison

For the Broadcasting subindustry, Motive Television'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.


Motive Television ROIC % vs Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Motive Television's ROIC % distribution charts can be found below:

* The bar in red indicates where Motive Television's ROIC % falls into.



Motive Television ROIC % Calculation

Motive Television's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2014 is calculated as:

ROIC % (A: Dec. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2013 ) + Invested Capital (A: Dec. 2014 ))/ count )
=-10.766 * ( 1 - 0.71% )/( (10.235 + 6.94)/ 2 )
=-10.6895614/8.5875
=-124.48 %

where

Motive Television's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2015 is calculated as:

ROIC % (Q: Jun. 2015 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2014 ) + Invested Capital (Q: Jun. 2015 ))/ count )
=-1.91 * ( 1 - 9.08% )/( (6.94 + 6.349)/ 2 )
=-1.736572/6.6445
=-26.14 %

where

Note: The Operating Income data used here is two times the semi-annual (Jun. 2015) 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 -26.14% mean?
Motive Television (LSE:MTV) has a ROIC % of -26.14% as of Jun. 2015. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Motive Television and its competitors.
Is Motive Television's ROIC % too high?
Motive Television's current ROIC % is -26.14%.
How does Motive Television's ROIC % compare to competitors?
Motive Television's ROIC % of -26.14% can be compared against companies in the Media - Diversified industry. The industry median ROIC % is 1.40. 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 Media - Diversified company?
The median ROIC % among Media - Diversified companies is 1.40, based on 1,009 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 Motive Television and its competitors. For the Media - Diversified industry, the median ROIC % is 1.40 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motive Television's current ROIC % is -26.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motive Television stock overvalued right now?
Motive Television (LSE:MTV) has a current ROIC % of -26.14%. The current ROIC % is -26.14%. 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 Motive Television (LSE:MTV), the current ROIC % is -26.14% as of Jun. 2015. 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.

Motive Television Business Description

Motive Television PLC was incorporated in the United Kingdom on December 22, 2004. The Company along with its subsidiaries is engaged in providing software and services to Television Broadcasters. The Company operates in two segments including; Digital Television Technology and Television Production (Content). The Company's solution offering include Content Express and TabletTV enabling TV providers to offer audiences more, giving them a competitive edge and delivering new revenues. The Content Express enables viewers to watch whatever they want, when they want, on any screen without having to build new networks. The Content Express software provides secure delivery and management of non-linear digital content across any type of broadcast network to any consumer-facing screen. It provides one-stop shop for digital terrestrial broadcasters, satellite, DTT, and cable pay television platforms, and Internet OTT content providers to offer new services including Video on Demand, Catch-up television, Tablet Television, Targeted Advertising for VOD, Mocast for 4G LTE, and Virtual channels and Video2Go. The Tablet TV designed to address the U.S. tablet and smartphone market, meeting the demand for watching long-form video on devices.