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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Sirona Dental Systems's annualized return on capital (ROC %) for the quarter that ended in Dec. 2015 was 17.36%.
As of today (2024-05-05), Sirona Dental Systems's WACC % is 0.00%. Sirona Dental Systems's ROC % is 0.00% (calculated using TTM income statement data). Sirona Dental Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Sirona Dental Systems's ROC % 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.
Sirona Dental Systems Annual Data | |||||||||||||||||||||
Trend | Mar06 | Sep07 | Sep08 | Sep09 | Sep10 | Sep11 | Sep12 | Sep13 | Sep14 | Sep15 | |||||||||||
ROC % | Get a 7-Day Free Trial | 9.19 | 10.42 | 12.55 | 13.81 | 15.93 |
Sirona Dental Systems Quarterly Data | ||||||||||||||||||||
Mar11 | Jun11 | Sep11 | Dec11 | Mar12 | Jun12 | Sep12 | Dec12 | Mar13 | Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | |
ROC % | Get a 7-Day Free Trial | 15.49 | 13.45 | 22.18 | 17.29 | 17.36 |
Sirona Dental Systems's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2015 is calculated as:
ROC % (A: Sep. 2015 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (A: Sep. 2014 ) | + | Invested Capital (A: Sep. 2015 )) | / count ) |
= | 258.3 * ( 1 - 22.56% ) | / | ( (1284.1 | + | 1226.7) | / 2 ) |
= | 200.02752 | / | 1255.4 | |||
= | 15.93 % |
where
Invested Capital | (A: Sep. 2014 ) | |||||||||||
= | 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 | )) |
= | 1811 | - | 144.1 | - | ( 382.8 | - | max(0, 237.3 | - | 687.1 | + | 382.8 | )) |
= | 1284.1 |
Invested Capital | (A: Sep. 2015 ) | |||||||||||
= | 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 | )) |
= | 1902.3 | - | 157.8 | - | ( 517.8 | - | max(0, 295.1 | - | 876.6 | + | 517.8 | )) |
= | 1226.7 |
Sirona Dental Systems's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2015 is calculated as:
ROC % (Q: Dec. 2015 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Sep. 2015 ) | + | Invested Capital (Q: Dec. 2015 )) | / count ) |
= | 266.8 * ( 1 - 23.03% ) | / | ( (1226.7 | + | 1138.5) | / 2 ) |
= | 205.35596 | / | 1182.6 | |||
= | 17.36 % |
where
Invested Capital | (Q: Sep. 2015 ) | |||||||||||
= | 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 | )) |
= | 1902.3 | - | 157.8 | - | ( 517.8 | - | max(0, 295.1 | - | 876.6 | + | 517.8 | )) |
= | 1226.7 |
Invested Capital | (Q: Dec. 2015 ) | |||||||||||
= | 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 | )) |
= | 1873.3 | - | 249.8 | - | ( 485 | - | max(0, 303.3 | - | 875.8 | + | 485 | )) |
= | 1138.5 |
Note: The Operating Income data used here is four times the quarterly (Dec. 2015) data.
* 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.
Sirona Dental Systems (NAS:SIRO) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Sirona Dental Systems's WACC % is 0.00%. Sirona Dental Systems's ROC % is 0.00% (calculated using TTM income statement data). Sirona Dental Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % 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.
Thank you for viewing the detailed overview of Sirona Dental Systems's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Kraemer Harry M Jansen Jr | director | DENTSPLY SIRONA INC., 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277 |
Arthur D Kowaloff | director | DENTSPLY SIRONA INC., 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277 |
Walter Petersohn | officer: Executive VP of Sales | C/O DENTSPLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277 |
David Beecken | director | DENTSPLY SIRONA INC, 221 W PHILADELPHIA ST, SUITE 60W, YORK PA 17401-2991 |
Thomas Jetter | director | DENTSPLY SIRONA INC, 221 W PHILADELPHIA ST, SUITE 60W, YORK PA 17401-2991 |
Ulrich Michel | officer: CFO and Exec. Vice President | CHAUSEE DE WAVRE, 1789, CARE OF WABCO HOLDINGS INC, BRUSSELS C9 1160 |
Rainer Berthan | officer: Executive VP | C/O SIRONA DENTAL SYSTEMS, INC., FABRIKSTRASSE, BENSHEIM 2M 31D-64625 |
Jeffrey Slovin | director, officer: Chief Executive Officer | DENTSPLY SIRONA INC., 30-30 47TH AVE, SUITE 500, LONG ISLAND CITY NY 11101 |
Jonathan I Friedman | officer: General Counsel and Secretary | DENTSPLY SIRONA INC., 30-30 47TH AVENUE, SUITE 500, LONG ISLAND CITY NY 11101 |
Timothy P Sullivan | director | THREE FIRST NATIONAL PLZ, SUITE 3800, CHICAGO IL 60602 |
Simone Blank | director, officer: Executive VP and CFO | C/O SIRONA, WASSERFELDSTRASSE 30 A-5020, SALZBURG C4 5020 |
Nicholas W Alexos | director | C/O DENTSPLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277 |
Stephen Rosenberg | 10 percent owner | 1004 FARNAM STREET, SUITE 400, OMAHA NE 68102 |
Uri Landesman | director | 230 PARK AVENUE, NEW YORK NY 10169 |
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