CEO Event Medya AS (IST:CEOEM) ROIC % : 26.56% (As of Sep. 2023)

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What is CEO Event Medya AS 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 %. CEO Event Medya AS's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was 26.56%.

As of today (2024-05-13), CEO Event Medya AS's WACC % is 10.53%. CEO Event Medya AS's ROIC % is 13.69% (calculated using TTM income statement data). CEO Event Medya AS generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

CEO Event Medya AS ROIC % Historical Data

The historical data trend for CEO Event Medya AS'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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CEO Event Medya AS ROIC % Chart

CEO Event Medya AS Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROIC %

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43.49

-24.16

-28.94

22.35

-5.60

CEO Event Medya AS Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROIC %	Get a 7-Day Free Trial															-11.74	18.47	-13.67	36.89	26.56

Competitive Comparison of CEO Event Medya AS's ROIC %

For the Specialty Business Services subindustry, CEO Event Medya AS'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.

CEO Event Medya AS's ROIC % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, CEO Event Medya AS's ROIC % distribution charts can be found below:

* The bar in red indicates where CEO Event Medya AS's ROIC % falls into.

CEO Event Medya AS ROIC % Calculation

CEO Event Medya AS's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROIC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-3.148 * ( 1 - -9.91% )	/	( (13.385	+	110.081)	/ 2 )
=	-3.4599668	/	61.733
=	-5.60 %

where

	Invested Capital		(A: Dec. 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	))
=	125.752	-	13.878	-	( 101.919	-	max(0, 15.606	-	114.095	+	101.919	))
=	13.385

	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	))
=	152.668	-	30.966	-	( 11.621	-	max(0, 39.858	-	139.03	+	11.621	))
=	110.081

CEO Event Medya AS's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROIC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	59.76 * ( 1 - 23.7% )	/	( (157.024	+	186.31)	/ 2 )
=	45.59688	/	171.667
=	26.56 %

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	))
=	226	-	45.257	-	( 23.719	-	max(0, 66.257	-	209.347	+	23.719	))
=	157.024

	Invested Capital		(Q: Sep. 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	))
=	272.627	-	37.669	-	( 48.648	-	max(0, 87.274	-	248.91	+	48.648	))
=	186.31

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

CEO Event Medya AS (IST:CEOEM) 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, CEO Event Medya AS's WACC % is 10.53%. CEO Event Medya AS's ROIC % is 13.69% (calculated using TTM income statement data). CEO Event Medya AS generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. CEO Event Medya AS 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.

CEO Event Medya AS ROIC % Related Terms

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CEO Event Medya AS (IST:CEOEM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » CEO Event Medya AS (IST:CEOEM) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Koza Business Center B-Blok 12/17, Balmumcu Mh. Morbasan Sk., Besiktas, Istanbul, TUR

Website

http://www.ceoevent.com.tr

CEO Event Medya AS is a Turkey based company involved in the event management business. It focuses on the six main dimensions of event management which are Congress, Sports, Entertainment, Fair, Design and Corporate areas.

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