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Tucows (TSX:TC) ROIC % : -0.69% (As of Dec. 2024)


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What is Tucows 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 %. Tucows's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was -0.69%.

As of today (2025-03-21), Tucows's WACC % is 10.70%. Tucows's ROIC % is -5.44% (calculated using TTM income statement data). Tucows earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Tucows ROIC % Historical Data

The historical data trend for Tucows'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.

Tucows ROIC % Chart

Tucows Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.96 -0.73 -5.39 -8.77 -5.69

Tucows Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 Premium Member Only -8.66 -9.95 -5.11 -6.34 -0.69

Competitive Comparison of Tucows's ROIC %

For the Software - Infrastructure subindustry, Tucows'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.


Tucows's ROIC % Distribution in the Software Industry

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

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



Tucows ROIC % Calculation

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

ROIC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=-51.764 * ( 1 - -7.84% )/( (948.69 + 1014.59)/ 2 )
=-55.8222976/981.64
=-5.69 %

where

Invested Capital(A: 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))
=1071.168 - 66.914 - ( 124.349 - max(0, 270.119 - 325.683+124.349))
=948.69

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

ROIC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=-6.668 * ( 1 - -4.73% )/( (995.533 + 1014.59)/ 2 )
=-6.9833964/1005.0615
=-0.69 %

where

Invested Capital(Q: Sep. 2024 )
=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))
=1082.362 - 56.066 - ( 101.878 - max(0, 269.392 - 300.155+101.878))
=995.533

Note: The Operating Income data used here is four times the quarterly (Dec. 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.


Tucows  (TSX:TC) 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, Tucows's WACC % is 10.70%. Tucows's ROIC % is -5.44% (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.


Tucows ROIC % Related Terms

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Tucows Business Description

Traded in Other Exchanges
Address
96 Mowat Avenue, Toronto, ON, CAN, M6K 3M1
Tucows Inc is a corporate parent, allocating capital and providing efficient shared services to its three businesses. The Company offers Mobile Service Enabler (MSE) solutions, as well as professional services to other retail mobile providers. The Company is also a distributor of Internet services, including domain name registration, digital certificates, and email. It provides these services through an Internet-based distribution network of Internet Service Providers, web hosting companies, and other providers of Internet services to end-users. It operates in three segments: Ting, Wavelo, and Tucows Domains. It generates the majority of its revenue from Tucows Domains. Geographically company operates in USA, Canada and Europe.
Executives
Elliot Lawrence Noss Director, Senior Officer
Investmentaktiengesellschaft Für Langfristige Investoren Tgv 10% Security Holder
Robin Chase Director
David John Woroch Senior Officer
Bret Fausett Senior Officer
Jessica Johannson Senior Officer
Justin Reilly Senior Officer
Jeffrey Schwartz Director
Michael Goldstein Senior Officer
Rawleigh Hazen Ralls Director

Tucows Headlines

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