Oesterreichische Staatsdruckerei Holding AG (LTS:0Q7B) ROIC % : 16.29% (As of Mar. 2020)

Oesterreichische Staatsdruckerei Holding AG ROIC % Chart

Oesterreichische Staatsdruckerei Holding AG Annual Data
	Trend	Mar11	Mar12	Mar13	Mar14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20
ROIC %		Get a 7-Day Free Trial					11.09	12.83	7.18	7.88	18.01

Oesterreichische Staatsdruckerei Holding AG Semi-Annual Data
	Sep10	Mar11	Sep11	Mar12	Sep12	Mar13	Sep13	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20
ROIC %	Get a 7-Day Free Trial															-3.04	13.73	1.66	18.41	16.29

Competitive Comparison of Oesterreichische Staatsdruckerei Holding AG's ROIC %

For the Specialty Business Services subindustry, Oesterreichische Staatsdruckerei Holding AG'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.

Oesterreichische Staatsdruckerei Holding AG's ROIC % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, Oesterreichische Staatsdruckerei Holding AG's ROIC % distribution charts can be found below:

* The bar in red indicates where Oesterreichische Staatsdruckerei Holding AG's ROIC % falls into.

Oesterreichische Staatsdruckerei Holding AG ROIC % Calculation

Oesterreichische Staatsdruckerei Holding AG's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2020 is calculated as:

where

Oesterreichische Staatsdruckerei Holding AG's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2020 is calculated as:

where

Note: The Operating Income data used here is two times the semi-annual (Mar. 2020) 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.

Oesterreichische Staatsdruckerei Holding AG  (LTS:0Q7B) 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, Oesterreichische Staatsdruckerei Holding AG's WACC % is 5.49%. Oesterreichische Staatsdruckerei Holding AG's ROIC % is 17.56% (calculated using TTM income statement data). Oesterreichische Staatsdruckerei Holding AG generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Oesterreichische Staatsdruckerei 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 %, 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.

Oesterreichische Staatsdruckerei Holding AG ROIC % Related Terms

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Oesterreichische Staatsdruckerei Holding AG (LTS:0Q7B) Business Description