Hi Packer,

I've seen a number of cable companies boasting that their return on invested capital is over 30%, but I don't know how to calculate that number.

One approximation that I can apply is to use Adjusted OIBDA/(net PPE + accumulated depreciation), but I understand that some PPEs were added 20+ years ago, so the gross PPE number is artificially low, and the result of this calculation gives an ROIC number artificially high. But even with this kind of calculation, LBYTK's ROIC is about 24%, not 30%+.

I wonder what's your thought on this?

Thanks,

MM