Kuoni Reisen Holding AG (XSWX:KUNN) ROC % : 12.43% (As of Dec. 2015)

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What is Kuoni Reisen Holding 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 %. Kuoni Reisen Holding AG's annualized return on capital (ROC %) for the quarter that ended in Dec. 2015 was 12.43%.

As of today (2024-05-25), Kuoni Reisen Holding AG's WACC % is 0.00%. Kuoni Reisen Holding AG's ROC % is 0.00% (calculated using TTM income statement data). Kuoni Reisen Holding AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Kuoni Reisen Holding AG ROC % Historical Data

The historical data trend for Kuoni Reisen Holding 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.

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Kuoni Reisen Holding AG ROC % Chart

Kuoni Reisen Holding AG Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROC %

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2.06

-0.54

2.70

2.42

3.15

Kuoni Reisen Holding AG Quarterly Data
	Sep09	Dec09	Jun10	Sep10	Dec10	Jun11	Sep11	Dec11	Jun12	Sep12	Dec12	Jun13	Sep13	Dec13	Jun14	Sep14	Dec14	Jun15	Sep15	Dec15
ROC %	Get a 7-Day Free Trial															4.34	0.26	1.05	2.11	12.43

Kuoni Reisen Holding AG ROC % Calculation

Kuoni Reisen Holding AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	81.2 * ( 1 - 26.62% )	/	( (2365	+	1415.3)	/ 2 )
=	59.58456	/	1890.15
=	3.15 %

where

	Invested Capital		(A: Dec. 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	))
=	2419.2	-	355.6	-	( 350	-	max(0, 1339.9	-	1038.5	+	350	))
=	2365

	Invested Capital		(A: 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	))
=	1629.4	-	249.1	-	( 271.2	-	max(0, 807.9	-	772.9	+	271.2	))
=	1415.3

Kuoni Reisen Holding AG'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 )
=	242.8 * ( 1 - 23.5% )	/	( (1572.2	+	1415.3)	/ 2 )
=	185.742	/	1493.75
=	12.43 %

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	))
=	2021.1	-	430.7	-	( 259	-	max(0, 1107.8	-	1126	+	259	))
=	1572.2

	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	))
=	1629.4	-	249.1	-	( 271.2	-	max(0, 807.9	-	772.9	+	271.2	))
=	1415.3

Note: The Operating Income data used here is four times the quarterly (Dec. 2015) data.

Kuoni Reisen Holding AG (XSWX:KUNN) 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, Kuoni Reisen Holding AG's WACC % is 0.00%. Kuoni Reisen Holding AG's ROC % is 0.00% (calculated using TTM income statement data). Kuoni Reisen Holding 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.

Kuoni Reisen Holding AG ROC % Related Terms

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Kuoni Reisen Holding AG (XSWX:KUNN) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Kuoni Reisen Holding AG (XSWX:KUNN) » Definitions » ROC %

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Address

Website

http://www.kuoni.com

Kuoni Reisen Holding AG was established in 1906. The Company operates travel agencies and provides travel planning services. It provides leisure travel services as well as offers tours and support services for overseas travelers in Europe. The Company's business activities are split into three different areas: Destination Management, Tour operating and Visa services. Destination & Accommodation services involve procurement and supply of services as a specialized wholesaler and supplier. It provides accommodation and land components to online & offline travel agencies, tour operators and aggregators via its efficient, online distribution system. Tour Operating activities focus on outbound leisure travel from European and Asian source markets and offer a variety of tailor-made, individual and packaged holidays to end consumers and online & offline travel agencies. Visa Processing Services offers administrative parts of the visa application, and other consular processes.

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