ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. BMC Software,'s annualized return on capital (ROC %) for the quarter that ended in Jun. 2013 was 7.13%.
As of today (2025-06-29), BMC Software,'s WACC % is 0.00%. BMC Software,'s ROC % is 0.00% (calculated using TTM income statement data).
BMC Software, earns returns that do not match up to its cost of capital. It will destroy value as it grows.
BMC Software, ROC % Historical Data
The historical data trend for BMC Software,'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.
Note:
The Operating Income data used here is four times the quarterly (Jun. 2013) 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.
BMC Software, (FRA:BMS) 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, BMC Software,'s WACC % is 0.00%. BMC Software,'s ROC % is 0.00% (calculated using TTM income statement data).
BMC Software, 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.
BMC Software, ROC % Related Terms
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BMC Software, Inc., was organized as a Texas corporation in 1980 and was reincorporated in Delaware in July 1988. It is a software company which provides IT management solutions for large, mid-sized and small enterprises and public sector organizations around the world. The Company's portfolios of IT management software solutions simplifies and automates the management of IT processes, mainframe, distributed, virtualized and cloud computing environments, as well as applications and databases. It also provides its customers with maintenance and support services for its products and assist customers with software implementation, integration, IT process and organizational transformation, and education services. The Company is organized into two business segments, Enterprise Service Management (ESM) and Mainframe Service Management (MSM). The Company's ESM segment consists of its solutions and related professional services in the following IT management areas: Service Assurance; Service Automation; Service Support; and BMC Atrium. The Company's MSM segment addresses IT requirements for mainframe data and performance management, middleware management, job scheduling and enterprise workload automation. The Company's customers include manufacturers, telecommunication companies, financial service providers, educational institutions, retailers, distributors, hospitals, service providers, government agencies and channel partners including resellers, distributors and system integrators. Its competitors are International Business Machines Corporation (IBM), CA, Inc. (CA) and Hewlett-Packard Company (HP). The Company's solutions are used by some of the largest, demanding IT organizations in the world including over 16,000 companies.
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