GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Saga Furs Oyj (OHEL:SAGCV) » Definitions » ROC %

Saga Furs Oyj (OHEL:SAGCV) ROC % : 3.62% (As of Oct. 2023)


View and export this data going back to 1987. Start your Free Trial

What is Saga Furs Oyj 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 %. Saga Furs Oyj's annualized return on capital (ROC %) for the quarter that ended in Oct. 2023 was 3.62%.

As of today (2024-04-25), Saga Furs Oyj's WACC % is 4.22%. Saga Furs Oyj's ROC % is 1.86% (calculated using TTM income statement data). Saga Furs Oyj earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Saga Furs Oyj ROC % Historical Data

The historical data trend for Saga Furs Oyj'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.

Saga Furs Oyj ROC % Chart

Saga Furs Oyj Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.65 -5.89 5.52 -3.37 1.85

Saga Furs Oyj Semi-Annual Data
Apr14 Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.53 -8.54 -2.64 0.24 3.62

Saga Furs Oyj ROC % Calculation

Saga Furs Oyj's annualized Return on Capital (ROC %) for the fiscal year that ended in Oct. 2023 is calculated as:

ROC % (A: Oct. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Oct. 2022 ) + Invested Capital (A: Oct. 2023 ))/ count )
=1.914 * ( 1 - 19.2% )/( (89.962 + 77.497)/ 2 )
=1.546512/83.7295
=1.85 %

where

Saga Furs Oyj's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2023 is calculated as:

ROC % (Q: Oct. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Apr. 2023 ) + Invested Capital (Q: Oct. 2023 ))/ count )
=3.572 * ( 1 - 19.16% )/( (82.236 + 77.497)/ 2 )
=2.8876048/79.8665
=3.62 %

where

Note: The Operating Income data used here is two times the semi-annual (Oct. 2023) 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.


Saga Furs Oyj  (OHEL:SAGCV) 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, Saga Furs Oyj's WACC % is 4.22%. Saga Furs Oyj's ROC % is 1.86% (calculated using TTM income statement data). Saga Furs Oyj 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.


Saga Furs Oyj ROC % Related Terms

Thank you for viewing the detailed overview of Saga Furs Oyj's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Saga Furs Oyj (OHEL:SAGCV) Business Description

Traded in Other Exchanges
N/A
Address
Martinkylantie 48, Vantaa, FIN, 01720
Saga Furs Oyj is a fur auction company.

Saga Furs Oyj (OHEL:SAGCV) Headlines

No Headlines