SodaStream International (SodaStream International) ROC % : 25.20% (As of Jun. 2018)

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What is SodaStream International ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. SodaStream International's annualized return on capital (ROC %) for the quarter that ended in Jun. 2018 was 25.20%.

As of today (2024-05-11), SodaStream International's WACC % is 0.00%. SodaStream International's ROC % is 0.00% (calculated using TTM income statement data). SodaStream International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

SodaStream International ROC % Historical Data

The historical data trend for SodaStream International'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.

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SodaStream International ROC % Chart

SodaStream International Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

ROC %

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15.29

5.63

2.44

13.44

19.74

SodaStream International Quarterly Data
	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18
ROC %	Get a 7-Day Free Trial															16.29	21.52	25.83	18.66	25.20

SodaStream International ROC % Calculation

SodaStream International's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2017 is calculated as:

	ROC % (A: Dec. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2016 )	+	Invested Capital (A: Dec. 2017 ))	/ count )
=	81.517 * ( 1 - 10.08% )	/	( (361.778	+	380.83)	/ 2 )
=	73.3000864	/	371.304
=	19.74 %

where

	Invested Capital		(A: Dec. 2016 )
=	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	))
=	465.927	-	53.899	-	( 50.25	-	max(0, 74.863	-	256.875	+	50.25	))
=	361.778

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	616.865	-	80.867	-	( 155.168	-	max(0, 108.843	-	396.262	+	155.168	))
=	380.83

SodaStream International's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2018 is calculated as:

	ROC % (Q: Jun. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2018 )	+	Invested Capital (Q: Jun. 2018 ))	/ count )
=	127.128 * ( 1 - 14.82% )	/	( (432.926	+	426.555)	/ 2 )
=	108.2876304	/	429.7405
=	25.20 %

where

	Invested Capital		(Q: Mar. 2018 )
=	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	))
=	658.462	-	77.34	-	( 148.196	-	max(0, 112.984	-	421.804	+	148.196	))
=	432.926

	Invested Capital		(Q: Jun. 2018 )
=	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	))
=	687.256	-	88.999	-	( 171.702	-	max(0, 122.873	-	455.554	+	171.702	))
=	426.555

Note: The Operating Income data used here is four times the quarterly (Jun. 2018) data.

SodaStream International (NAS:SODA) 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, SodaStream International's WACC % is 0.00%. SodaStream International's ROC % is 0.00% (calculated using TTM income statement data). SodaStream International 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.

SodaStream International ROC % Related Terms

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SodaStream International (SodaStream International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » SodaStream International Ltd (NAS:SODA) » Definitions » ROC %

Traded in Other Exchanges

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Address

Website

http://www.sodastream.com

SodaStream International Ltd manufactures and sells home beverage carbonation systems, which enable consumers to instantly transform tap water into carbonated soft drinks and sparkling water, and it offers sodas in more than 100 flavors. The group sells its products in retail stores around the world under the SodaStream and Soda-Club brands. The firm operates in the following four main geographical segments: The Americas; Western Europe; Asia-Pacific; and Central/Eastern Europe, the Middle East, and Africa.