Tecnosolo Engenharia (BSP:TCNO3) ROC %

: -0.31% (As of Jun. 2022)

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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Tecnosolo Engenharia's annualized return on capital (ROC %) for the quarter that ended in Jun. 2022 was -0.31%.

As of today (2024-04-19), Tecnosolo Engenharia's WACC % is 0.00%. Tecnosolo Engenharia's ROC % is 0.00% (calculated using TTM income statement data). Tecnosolo Engenharia earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Tecnosolo Engenharia ROC % Historical Data

The historical data trend for Tecnosolo Engenharia'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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => -4.92 [6] => -2.70 [7] => -0.76 [8] => -0.30 [9] => -0.27 )

Tecnosolo Engenharia Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROC %

-4.92

-2.70

-0.76

-0.30

-0.27

Tecnosolo Engenharia Quarterly Data
	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22
ROC %																0.19	0.11	-3.66	-0.31	-0.31

Tecnosolo Engenharia ROC % Calculation

Tecnosolo Engenharia's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-0.634 * ( 1 - 0% )	/	( (233.681	+	235.175)	/ 2 )
=	-0.634	/	234.428
=	-0.27 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	234.944	-	99.528	-	( 0.007	-	max(0, 138.023	-	39.758	+	0.007	))
=	233.681

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	236.228	-	100.933	-	( 0.007	-	max(0, 139.774	-	39.894	+	0.007	))
=	235.175

Tecnosolo Engenharia's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2022 is calculated as:

	ROC % (Q: Jun. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2022 )	+	Invested Capital (Q: Jun. 2022 ))	/ count )
=	-0.732 * ( 1 - 0% )	/	( (235.806	+	236.437)	/ 2 )
=	-0.732	/	236.1215
=	-0.31 %

where

	Invested Capital		(Q: Mar. 2022 )
=	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	))
=	236.537	-	101.104	-	( 0.007	-	max(0, 140.267	-	39.894	+	0.007	))
=	235.806

	Invested Capital		(Q: Jun. 2022 )
=	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	))
=	236.846	-	101.275	-	( 0.007	-	max(0, 140.76	-	39.894	+	0.007	))
=	236.437

Note: The Operating Income data used here is four times the quarterly (Jun. 2022) data.

Tecnosolo Engenharia (BSP:TCNO3) 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, Tecnosolo Engenharia's WACC % is 0.00%. Tecnosolo Engenharia's ROC % is 0.00% (calculated using TTM income statement data). Tecnosolo Engenharia 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.

Tecnosolo Engenharia ROC % Related Terms

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Tecnosolo Engenharia (BSP:TCNO3) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Tecnosolo Engenharia SA (BSP:TCNO3) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Rua Conego Felipe 219, Taquara, Jacarepagua, Rio de Janeiro, RJ, BRA, 22713010

Website

http://www.tecnosolo.com.br

Tecnosolo Engenharia SA is a construction & engineering consulting company. It engages in construction & restoration of dams, industrial plants, buildings, ports, airports & sport facilities, & also offers drilling & topographical services.The company constructs residential, commercial, industrial, and sports buildings, as well as concrete and steel structures. It also offers engineering consulting services in the areas of basic/preliminary and viability studies, drafts, oversight, management, and supervision.

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