iSign Media Solutions (TSXV:ISD.H) ROC % : -36.81% (As of Jan. 2023)

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What is iSign Media Solutions 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 %. iSign Media Solutions's annualized return on capital (ROC %) for the quarter that ended in Jan. 2023 was -36.81%.

As of today (2024-06-07), iSign Media Solutions's WACC % is 0.00%. iSign Media Solutions's ROC % is 0.00% (calculated using TTM income statement data). iSign Media Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.

iSign Media Solutions ROC % Historical Data

The historical data trend for iSign Media Solutions'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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iSign Media Solutions ROC % Chart

iSign Media Solutions Annual Data

Trend

Apr13

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

ROC %

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-82.61

-45.70

-30.61

-27.88

-65.93

iSign Media Solutions Quarterly Data
	Apr18	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23
ROC %	Get a 7-Day Free Trial															-63.27	-84.14	-48.27	-44.46	-36.81

iSign Media Solutions ROC % Calculation

iSign Media Solutions's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2022 is calculated as:

	ROC % (A: Apr. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Apr. 2021 )	+	Invested Capital (A: Apr. 2022 ))	/ count )
=	-1.607 * ( 1 - 4.71% )	/	( (3.195	+	1.45)	/ 2 )
=	-1.5313103	/	2.3225
=	-65.93 %

where

	Invested Capital		(A: Apr. 2021 )
=	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	))
=	0.234	-	1.278	-	( 0.003	-	max(0, 4.317	-	0.078	+	0.003	))
=	3.195

	Invested Capital		(A: Apr. 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	))
=	1.181	-	0.653	-	( 0.046	-	max(0, 1.023	-	0.101	+	0.046	))
=	1.45

iSign Media Solutions's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2023 is calculated as:

	ROC % (Q: Jan. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2022 )	+	Invested Capital (Q: Jan. 2023 ))	/ count )
=	-0.42 * ( 1 - 0% )	/	( (1.1	+	1.182)	/ 2 )
=	-0.42	/	1.141
=	-36.81 %

where

	Invested Capital		(Q: Oct. 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	))
=	1.025	-	0.931	-	( 0.001	-	max(0, 1.047	-	0.041	+	0.001	))
=	1.1

	Invested Capital		(Q: Jan. 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	))
=	1.008	-	1.101	-	( 0.002	-	max(0, 1.312	-	0.037	+	0.002	))
=	1.182

Note: The Operating Income data used here is four times the quarterly (Jan. 2023) data.

iSign Media Solutions (TSXV:ISD.H) 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, iSign Media Solutions's WACC % is 0.00%. iSign Media Solutions's ROC % is 0.00% (calculated using TTM income statement data). iSign Media Solutions 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.

iSign Media Solutions ROC % Related Terms

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iSign Media Solutions (TSXV:ISD.H) Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » iSign Media Solutions Inc (TSXV:ISD.H) » Definitions » ROC %

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Address

105 West Beaver Creek Road, Suite 303, Richmond Hill, ON, CAN, L4B 1C6

Website

https://www.isignmedia.com

iSign Media Solutions Inc is a data-focused Software-as-a-Service (SaaS) company. It is engaged in gathering point-of-sale data and mobile shopper preferences to generate actionable data and reveal valuable consumer insights. It mainly offers two solutions, which includes Smart Antenna which utilizes Bluetooth and Wi-Fi location-aware technology and Interactive Marketing System which uses Bluetooth. Most of its revenue is generated from North America.

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