Euro Group Laminations SpA (MIL:EGLA) ROC % : 0.00% (As of Jun. 2023)

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What is Euro Group Laminations SpA 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 %. Euro Group Laminations SpA's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was 0.00%.

As of today (2024-04-26), Euro Group Laminations SpA's WACC % is 6.99%. Euro Group Laminations SpA's ROC % is 5.57% (calculated using TTM income statement data). Euro Group Laminations SpA earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Euro Group Laminations SpA ROC % Historical Data

The historical data trend for Euro Group Laminations SpA'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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Euro Group Laminations SpA ROC % Chart

Euro Group Laminations SpA Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

ROC %

3.77

-0.39

6.74

13.30

Euro Group Laminations SpA Quarterly Data
	Dec19	Dec20	Sep21	Dec21	Jun22	Sep22	Dec22	Jun23
ROC %	Get a 7-Day Free Trial			4.29	-	9.59	14.51	-

Euro Group Laminations SpA ROC % Calculation

Euro Group Laminations SpA's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	83.193 * ( 1 - 31.19% )	/	( (379.348	+	481.397)	/ 2 )
=	57.2451033	/	430.3725
=	13.30 %

where

	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	))
=	736.288	-	256.512	-	( 137.662	-	max(0, 383.191	-	483.619	+	137.662	))
=	379.348

	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	))
=	961.744	-	358.16	-	( 122.187	-	max(0, 510.929	-	666.215	+	122.187	))
=	481.397

Euro Group Laminations SpA's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	0 * ( 1 - 0% )	/	( (481.397	+	671.541)	/ 2 )
=	0	/	576.469
=	0.00 %

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	))
=	961.744	-	358.16	-	( 122.187	-	max(0, 510.929	-	666.215	+	122.187	))
=	481.397

	Invested Capital		(Q: Jun. 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	))
=	1145.123	-	303.995	-	( 169.587	-	max(0, 452.162	-	811.544	+	169.587	))
=	671.541

Note: The Operating Income data used here is four times the quarterly (Jun. 2023) data.

Euro Group Laminations SpA (MIL:EGLA) 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, Euro Group Laminations SpA's WACC % is 6.99%. Euro Group Laminations SpA's ROC % is 5.57% (calculated using TTM income statement data). Euro Group Laminations SpA 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.

Euro Group Laminations SpA ROC % Related Terms

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Euro Group Laminations SpA (MIL:EGLA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Euro Group Laminations SpA (MIL:EGLA) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

QK9:Germany QK9:Germany

Address

Via Stella Rosa, 48, Baranzate, Milan, ITA, 20021

Website

https://www.euro-group.it

Euro Group Laminations SpA develops and produces stators and rotors. The group is organized into two operating segments which are EV and Automotive which operate mainly in the electric automotive sector and in general in all applications related to the automotive sector. The Industrial segment produces components mainly for the home, logistics, energy, Pumps, HVAC, tools, and diversified industries. The company earns the majority of its revenue from the Industrial segment.