Bandwidth Inc ROIC
What is the ROIC of Bandwidth Inc?
The ROIC of Bandwidth Inc is -1.82%
What is the definition of ROIC?
Return on invested capital (ROIC) is a financial ratio that measures how efficient a company is at allocating the capital under its control to profitable investments.
= NOPAT / Invested capital = EBIT * (1 - tax rate) / (2-year average liabilities + 2-year average shareholder equity)
Return on invested capital (ROIC) ratio gives investors a sense of how well a company is using money under its control to generate profitable returns.
ROIC can be used as a benchmark to calculate the valuation of companies across industries. A higher ROIC means the company is doing a better job of investing the money from shareholders and bondholders to run the business. A company is creating value if its ROIC exceeds 2%. If its ROIC is under 2%, the company is likely destroying value and has no excess capital to invest in future growth.
You can calculate ROIC with the following formula:
NOPAT = Net operating profit after tax
Invested Capital = Average total liabilities + Average shareholders' equity
The averages of liabilities and shareholders' equity are calculated as geometrical averages of the last two annual values from the company's balance sheet.
ROIC of companies in the Technology sector on NASDAQ compared to Bandwidth Inc
What does Bandwidth Inc do?
bandwidth is a software company that’s transforming the way people communicate and challenging the standards of old telecom. together with our customers, we’re unlocking remarkable value, questioning the status quo, and helping people interact with technology and one another, oftentimes in ways they never dreamed possible. haven’t heard of bandwidth? well you’ve probably used one of our products before. we power some of the most important communications technologies on the market today—names like google, skype and ring central to name a few. at bandwidth, we’ve got a passion for doing things the other way – imagining what they could be and uncovering opportunities to take a new approach to create what should be. we’re out to disrupt the century-old rules of the telecom industry—and that means doing things differently in every area of our business. it’s in the way we treat our people, and how we create with our customers. whether our engineering teams are crunching code during all-night
Companies with roic similar to Bandwidth Inc
- Huaneng Power International has ROIC of -1.84%
- Annaly Capital Management Inc has ROIC of -1.83%
- NexPoint Hospitality Trust has ROIC of -1.83%
- ClearBridge MLP and Midstream Total Return Fund Inc has ROIC of -1.83%
- Telephone And Data Systems has ROIC of -1.83%
- Serviceware SE has ROIC of -1.83%
- Bandwidth Inc has ROIC of -1.82%
- Orion Office REIT has ROIC of -1.82%
- Star Peak Transition has ROIC of -1.82%
- NeuPath Health has ROIC of -1.81%
- Comtech Telecommunications has ROIC of -1.81%
- Rajdarshan Industries has ROIC of -1.81%
- Wayfair has ROIC of -1.81%