Telesat's (TSE:TSAT) Returns On Capital Not Reflecting Well On The Business [Yahoo! Finance]
Telesat Corporation (TSAT)
Company Research
Source: Yahoo! Finance
return on capital employed (ROCE) that's declining, and a base of capital employed that's also declining. This indicates to us that the business is not only shrinking the size of its net assets, but its returns are falling as well. So after we looked into Telesat TSE:TSAT ), the trends above didn't look too great. Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. Analysts use this formula to calculate it for Telesat: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.042 = CA$255m ÷ (CA$6.3b - CA$290m) (Based on the trailing twelve months to September 2024) So, Telesat has an ROCE of 4.2%. In absolute terms, that's a low return and it also under-performs the Telecom industry average of 8.7%. View our latest analysis for Telesat Above you can see how the current ROCE for Telesat compares to its prio
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TSAT
News
- Is Telesat (TSAT) Stock Undervalued Right Now? [Yahoo! Finance]Yahoo! Finance
- SatixFy Announces Nine-Month 2024 Results [Yahoo! Finance]Yahoo! Finance
- Telesat and MDA Space Complete Key Milestone for Telesat Lightspeed Constellation [Canadian Business Journal (Canada)]Canadian Business Journal
- Telesat and MDA Space Complete Key Milestone for Telesat Lightspeed Constellation [Yahoo! Finance]Yahoo! Finance
- Telesat and MDA Space Complete Key Milestone for Telesat Lightspeed ConstellationGlobeNewswire
TSAT
Sec Filings
- 12/18/24 - Form SCHEDULE
- 11/14/24 - Form 6-K
- 11/14/24 - Form 6-K
- TSAT's page on the SEC website