Ai-Media Technologies (Ai-Media Technologies) ROIC % : -2.10% (As of Dec. 2023)

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What is Ai-Media Technologies 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 %. Ai-Media Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -2.10%.

As of today (2024-05-27), Ai-Media Technologies's WACC % is 14.15%. Ai-Media Technologies's ROIC % is -4.86% (calculated using TTM income statement data). Ai-Media Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ai-Media Technologies ROIC % Historical Data

The historical data trend for Ai-Media Technologies'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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Ai-Media Technologies ROIC % Chart

Ai-Media Technologies Annual Data

Trend

Jun21

Jun22

Jun23

ROIC %

-12.94

-4.80

-4.23

Ai-Media Technologies Semi-Annual Data
	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial			-4.63	-4.98	-1.95	-7.67	-2.10

Competitive Comparison of Ai-Media Technologies's ROIC %

For the Entertainment subindustry, Ai-Media Technologies'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.

Ai-Media Technologies's ROIC % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Ai-Media Technologies's ROIC % distribution charts can be found below:

* The bar in red indicates where Ai-Media Technologies's ROIC % falls into.

Ai-Media Technologies ROIC % Calculation

Ai-Media Technologies's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROIC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-1.377 * ( 1 - -74.16% )	/	( (56.946	+	56.506)	/ 2 )
=	-2.3981832	/	56.726
=	-4.23 %

where

	Invested Capital		(A: Jun. 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	))
=	72.135	-	4.327	-	( 10.862	-	max(0, 9.496	-	21.052	+	10.862	))
=	56.946

	Invested Capital		(A: 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	))
=	67.649	-	4.166	-	( 11.509	-	max(0, 13.803	-	20.78	+	11.509	))
=	56.506

Ai-Media Technologies's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-0.486 * ( 1 - -128.17% )	/	( (56.506	+	49.221)	/ 2 )
=	-1.1089062	/	52.8635
=	-2.10 %

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	))
=	67.649	-	4.166	-	( 11.509	-	max(0, 13.803	-	20.78	+	11.509	))
=	56.506

	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	))
=	60.39	-	4.323	-	( 7.92	-	max(0, 9.032	-	15.878	+	7.92	))
=	49.221

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Ai-Media Technologies (OTCPK:AINHF) 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, Ai-Media Technologies's WACC % is 14.15%. Ai-Media Technologies's ROIC % is -4.86% (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.

Ai-Media Technologies ROIC % Related Terms

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Ai-Media Technologies (Ai-Media Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Ai-Media Technologies Ltd (OTCPK:AINHF) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

AIM:Australia

Address

103 Miller Street, Level 1, North Sydney, NSW, AUS, 2060

Website

https://www.ai-media.tv

Ai-Media Technologies Ltd is a provider of live and recorded captioning, transcription, subtitles, translation, and speech analytics using a proprietary, cloud-based technology platform. The company has three operating segments based on geographical locations: Australia and New Zealand, North America (which includes Canada and the United States of America), and the Rest of the world (which includes the United Kingdom, Singapore, and Malaysia) and the majority of its revenue generates from North America.