Rogers Communications (Rogers Communications) ROC % : 4.84% (As of Mar. 2024)

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What is Rogers Communications ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Rogers Communications's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 4.84%.

As of today (2024-04-27), Rogers Communications's WACC % is 5.01%. Rogers Communications's ROC % is 4.49% (calculated using TTM income statement data). Rogers Communications earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Rogers Communications ROC % Historical Data

The historical data trend for Rogers Communications's ROC % 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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Rogers Communications ROC % Chart

Rogers Communications Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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8.52

6.85

6.31

5.88

4.74

Rogers Communications Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															5.70	5.48	-58.93	4.33	4.84

Rogers Communications ROC % Calculation

Rogers Communications's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	3324.389 * ( 1 - 37.85% )	/	( (37887.375	+	49201.7)	/ 2 )
=	2066.1077635	/	43544.5375
=	4.74 %

where

	Invested Capital		(A: Dec. 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	))
=	40967.979	-	2739.787	-	( 340.817	-	max(0, 7029.076	-	14194.332	+	340.817	))
=	37887.375

	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	))
=	51641.324	-	3146.243	-	( 596.303	-	max(0, 6545.915	-	5839.296	+	596.303	))
=	49201.7

Rogers Communications's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	3147.164 * ( 1 - 23.58% )	/	( (49201.7	+	50204.639)	/ 2 )
=	2405.0627288	/	49703.1695
=	4.84 %

where

	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	))
=	51641.324	-	3146.243	-	( 596.303	-	max(0, 6545.915	-	5839.296	+	596.303	))
=	49201.7

	Invested Capital		(Q: Mar. 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	))
=	51282.506	-	2792.553	-	( 564.421	-	max(0, 7334.515	-	5619.829	+	564.421	))
=	50204.639

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Rogers Communications (NYSE:RCI) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Rogers Communications's WACC % is 5.01%. Rogers Communications's ROC % is 4.49% (calculated using TTM income statement data). Rogers Communications 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 %, ROC % 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.

Rogers Communications ROC % Related Terms

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Rogers Communications (Rogers Communications) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Rogers Communications Inc (NYSE:RCI) » Definitions » ROC %

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RCIAF:USA RCI.B:Canada RCI.A:Canada

Address

333 Bloor Street East, 10th Floor, Toronto, ON, CAN, M4W 1G9

Website

https://www.rogers.com

Rogers Communications is the largest wireless service provider in Canada, with its more than 10 million subscribers equating to one third of the total Canadian market. Its wireless business accounted for more than half of total revenue and has increasingly been providing a bigger portion of total company sales over the last several years. Rogers' cable segment, which provides about 40% of total revenue after acquiring Shaw, offers home internet, television, and landline phone service to consumers and businesses. Remaining sales come from Rogers' media unit, which owns and operates various television and radio stations and the Toronto Blue Jays. Rogers' significant exposure to sports also includes ownership stakes in the Toronto Maple Leafs, Raptors, FC, and Argonauts.