Everybody Loves Languages (TSXV:ELL) ROIC % : -100.07% (As of Sep. 2021)

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What is Everybody Loves Languages 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 %. Everybody Loves Languages's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2021 was -100.07%.

As of today (2024-05-26), Everybody Loves Languages's WACC % is 0.00%. Everybody Loves Languages's ROIC % is 0.00% (calculated using TTM income statement data). Everybody Loves Languages earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Everybody Loves Languages ROIC % Historical Data

The historical data trend for Everybody Loves Languages'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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Everybody Loves Languages ROIC % Chart

Everybody Loves Languages Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

ROIC %

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2.04

-84.83

41.64

19.91

114.32

Everybody Loves Languages Quarterly Data
	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21
ROIC %	Get a 7-Day Free Trial															-148.06	300.64	-168.00	313.33	-100.07

Competitive Comparison of Everybody Loves Languages's ROIC %

For the Education & Training Services subindustry, Everybody Loves Languages'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.

Everybody Loves Languages's ROIC % Distribution in the Education Industry

For the Education industry and Consumer Defensive sector, Everybody Loves Languages's ROIC % distribution charts can be found below:

* The bar in red indicates where Everybody Loves Languages's ROIC % falls into.

Everybody Loves Languages ROIC % Calculation

Everybody Loves Languages's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2020 is calculated as:

	ROIC % (A: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2019 )	+	Invested Capital (A: Dec. 2020 ))	/ count )
=	1.378 * ( 1 - 14.8% )	/	( (1.092	+	0.962)	/ 2 )
=	1.174056	/	1.027
=	114.32 %

where

	Invested Capital		(A: Dec. 2019 )
=	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	))
=	1.952	-	0.418	-	( 0.442	-	max(0, 0.686	-	1.403	+	0.442	))
=	1.092

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	2.396	-	0.221	-	( 1.213	-	max(0, 0.459	-	2.356	+	1.213	))
=	0.962

Everybody Loves Languages's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2021 is calculated as:

	ROIC % (Q: Sep. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2021 )	+	Invested Capital (Q: Sep. 2021 ))	/ count )
=	-1.084 * ( 1 - 4.41% )	/	( (1.102	+	0.969)	/ 2 )
=	-1.0361956	/	1.0355
=	-100.07 %

where

	Invested Capital		(Q: Jun. 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	))
=	2.607	-	0.213	-	( 1.292	-	max(0, 0.475	-	2.588	+	1.292	))
=	1.102

	Invested Capital		(Q: Sep. 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	))
=	2.33	-	0.176	-	( 1.185	-	max(0, 0.424	-	2.312	+	1.185	))
=	0.969

Note: The Operating Income data used here is four times the quarterly (Sep. 2021) data.

Everybody Loves Languages (TSXV:ELL) 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, Everybody Loves Languages's WACC % is 0.00%. Everybody Loves Languages's ROIC % is 0.00% (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.

Everybody Loves Languages ROIC % Related Terms

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Everybody Loves Languages (TSXV:ELL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Everybody Loves Languages Corp (TSXV:ELL) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

20 Bay Street, 11th Floor, Toronto, ON, CAN, M5J 2N8

Website

https://www.elltechnologies.com

Everybody Loves Languages Corp is an Ed-tech language-learning and content development company empowering language educators to easily transition from traditional teaching methods to digital learning by integrating education, edutainment, and technology. It has two business segments; The license of intellectual property: Lingo Learning is a content-based publisher of English language learning textbook programs in China. It earns royalties from Licensing Sales compared to Finished Product Sales, and Online and Offline Language Learning; a web-based educational technology language learning, training, and assessment company. The Company provides the right to access to hosted software over a contract term without the customer taking possession of the software.

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