Fator Ore Asset Gestora de Recursosa. (BSP:WTSP11B) ROC % : 1,156.01% (As of Dec. 2023)

View and export this data going back to 2018. Start your Free Trial

What is Fator Ore Asset Gestora de Recursosa. 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 %. Fator Ore Asset Gestora de Recursosa.'s annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 1,156.01%.

As of today (2024-05-13), Fator Ore Asset Gestora de Recursosa.'s WACC % is 5.94%. Fator Ore Asset Gestora de Recursosa.'s ROC % is 1156.01% (calculated using TTM income statement data). Fator Ore Asset Gestora de Recursosa. 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.

Fator Ore Asset Gestora de Recursosa. ROC % Historical Data

The historical data trend for Fator Ore Asset Gestora de Recursosa.'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.

Fator Ore Asset Gestora de Recursosa. ROC % Chart

Fator Ore Asset Gestora de Recursosa. Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

-1.22

-0.90

22,058.33

1,156.01

Fator Ore Asset Gestora de Recursosa. Semi-Annual Data
	Dec19	Dec20	Dec21	Dec22	Dec23
ROC %	-	-1.22	-0.90	22,058.33	1,156.01

Fator Ore Asset Gestora de Recursosa. ROC % Calculation

Fator Ore Asset Gestora de Recursosa.'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 )
=	13.167 * ( 1 - 0% )	/	( (0.024000000000001	+	2.254)	/ 2 )
=	13.167	/	1.139
=	1,156.01 %

where

	Invested Capital		(A: Dec. 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	))
=	139.112	-	1.38	-	( 138.517	-	max(0, 1.404	-	139.112	+	138.517	))
=	0.024000000000001

	Invested Capital		(A: Dec. 2023 )
=	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	))
=	136.817	-	1.38	-	( 133.183	-	max(0, 1.38	-	136.817	+	133.183	))
=	2.254

Fator Ore Asset Gestora de Recursosa.'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: Dec. 2022 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	13.167 * ( 1 - 0% )	/	( (0.024000000000001	+	2.254)	/ 2 )
=	13.167	/	1.139
=	1,156.01 %

where

	Invested Capital		(Q: Dec. 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	))
=	139.112	-	1.38	-	( 138.517	-	max(0, 1.404	-	139.112	+	138.517	))
=	0.024000000000001

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	136.817	-	1.38	-	( 133.183	-	max(0, 1.38	-	136.817	+	133.183	))
=	2.254

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

Fator Ore Asset Gestora de Recursosa. (BSP:WTSP11B) 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, Fator Ore Asset Gestora de Recursosa.'s WACC % is 5.94%. Fator Ore Asset Gestora de Recursosa.'s ROC % is 1156.01% (calculated using TTM income statement data). Fator Ore Asset Gestora de Recursosa. 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.

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.

Fator Ore Asset Gestora de Recursosa. ROC % Related Terms

Thank you for viewing the detailed overview of Fator Ore Asset Gestora de Recursosa.'s ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Fator Ore Asset Gestora de Recursosa. (BSP:WTSP11B) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Fator Ore Asset Gestora de Recursos Ltda. (BSP:WTSP11B) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

OUFF11:Brazil

Address

Av. Paulista, n 1.728, 2nd to 4th, 7th and 11th Floors, Bela Vista, Ourinvest Building, Sao Paulo, SP, BRA, CEP 01310-919

Website

https://www.ourinvest.com.br

Fator Ore Asset Gestora de Recursos Ltda. is an asset management company engaged in fund managing activities.

Fator Ore Asset Gestora de Recursosa. (BSP:WTSP11B) Headlines

No Headlines