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va-Q-tec AG (HAM:VQT) ROC % : -22.74% (As of Dec. 2023)


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What is va-Q-tec AG 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 %. va-Q-tec AG's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -22.74%.

As of today (2024-05-27), va-Q-tec AG's WACC % is 7.98%. va-Q-tec AG's ROC % is -11.85% (calculated using TTM income statement data). va-Q-tec AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.


va-Q-tec AG ROC % Historical Data

The historical data trend for va-Q-tec AG'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.

* Premium members only.

va-Q-tec AG ROC % Chart

va-Q-tec AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.27 -0.82 1.87 -8.32 -13.07

va-Q-tec AG Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC % 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 -28.31 -8.23 -11.15 -5.92 -22.74

va-Q-tec AG ROC % Calculation

va-Q-tec AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-17.137 * ( 1 - -4.86% )/( (153.532 + 121.378)/ 2 )
=-17.9698582/137.455
=-13.07 %

where

va-Q-tec AG's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-30.484 * ( 1 - -0.85% )/( (148.958 + 121.378)/ 2 )
=-30.743114/135.168
=-22.74 %

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.


va-Q-tec AG  (HAM:VQT) 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, va-Q-tec AG's WACC % is 7.98%. va-Q-tec AG's ROC % is -11.85% (calculated using TTM income statement data). va-Q-tec AG 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.


va-Q-tec AG ROC % Related Terms

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va-Q-tec AG (HAM:VQT) Business Description

Traded in Other Exchanges
Address
Alfred-Nobel-Strasse 33, Wurzburg, BY, DEU, 97080
va-Q-tec AG develops, produces and sells products for temperature controlling and insulation-vacuum, insulation panels, heat storage and phase change materials. The company segments include Va-Q-tec AG, Va-Q-tec Ltd (UK) and Others. It generates maximum revenue from the Va-Q-tec AG segment. Geographically, it has a presence in Germany, Rest of European Union and Other. The company's serve Healthcare and Logistics, Appliances and Food, Construction, Technics and Industry, and Mobility.

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