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Wacker Neuson SE (XTER:WAC) ROIC % : -0.53% (As of Dec. 2023)


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What is Wacker Neuson SE ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Wacker Neuson SE's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -0.53%.

As of today (2024-04-28), Wacker Neuson SE's WACC % is 9.71%. Wacker Neuson SE's ROIC % is 7.41% (calculated using TTM income statement data). Wacker Neuson SE earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Wacker Neuson SE ROIC % Historical Data

The historical data trend for Wacker Neuson SE's ROIC % 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.

* Premium members only.

Wacker Neuson SE ROIC % Chart

Wacker Neuson SE Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.08 1.04 8.18 7.54 8.17

Wacker Neuson SE Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.35 10.17 12.14 8.33 -0.53

Competitive Comparison of Wacker Neuson SE's ROIC %

For the Farm & Heavy Construction Machinery subindustry, Wacker Neuson SE's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Wacker Neuson SE's ROIC % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Wacker Neuson SE's ROIC % distribution charts can be found below:

* The bar in red indicates where Wacker Neuson SE's ROIC % falls into.



Wacker Neuson SE ROIC % Calculation

Wacker Neuson SE's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=236.3 * ( 1 - 27.01% )/( (1947.9 + 2272.6)/ 2 )
=172.47537/2110.25
=8.17 %

where

Wacker Neuson SE's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-16.4 * ( 1 - 26.2% )/( (2267.6 + 2272.6)/ 2 )
=-12.1032/2270.1
=-0.53 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) 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.


Wacker Neuson SE  (XTER:WAC) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Wacker Neuson SE's WACC % is 9.71%. Wacker Neuson SE's ROIC % is 7.41% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


Wacker Neuson SE ROIC % Related Terms

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Wacker Neuson SE (XTER:WAC) Business Description

Traded in Other Exchanges
Address
Preussenstrasse 41, Munich, DEU, 80809
Wacker Neuson SE manufactures light and heavy equipment for construction, landscaping, agriculture, recycling, energy, and rail industries. Excavators, dumpers, loaders, concrete technology, generators, and saws make up just a portion of the company's product portfolio. Besides, the company offers attachments and accessories for products to help deliver optimal solutions. Wacker Neuson has three business segments: Compact Equipment (approximately half of the total revenue), Light Equipment, and Services. The company offers a range of services, spare parts, and rental equipment through sales and service stations strategically placed around the world. Europe generates the majority of total revenue, but the company also sells to customers in the Americas and Asia-Pacific.

Wacker Neuson SE (XTER:WAC) Headlines

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