Medmix AG (XSWX:MEDX) ROC % : 0.57% (As of Dec. 2023)

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What is Medmix AG 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 %. Medmix AG's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 0.57%.

As of today (2024-04-27), Medmix AG's WACC % is 4.35%. Medmix AG's ROC % is 0.44% (calculated using TTM income statement data). Medmix AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Medmix AG ROC % Historical Data

The historical data trend for Medmix AG'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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Medmix AG ROC % Chart

Medmix AG Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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7.60

2.87

7.43

6.10

0.42

Medmix AG Semi-Annual Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial					6.71	6.40	-6.14	2.54	0.57

Medmix AG ROC % Calculation

Medmix AG'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 )
=	14.2 * ( 1 - 75.86% )	/	( (828.8	+	793.8)	/ 2 )
=	3.42788	/	811.3
=	0.42 %

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	))
=	1105.9	-	59.2	-	( 316.8	-	max(0, 271.1	-	489	+	316.8	))
=	828.8

	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	))
=	1006.8	-	83	-	( 130.6	-	max(0, 178.1	-	308.1	+	130.6	))
=	793.8

Medmix AG'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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	4 * ( 1 - -8.2% )	/	( (727.9	+	793.8)	/ 2 )
=	4.328	/	760.85
=	0.57 %

where

	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	))
=	971.6	-	91	-	( 152.7	-	max(0, 147.6	-	340.4	+	152.7	))
=	727.9

	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	))
=	1006.8	-	83	-	( 130.6	-	max(0, 178.1	-	308.1	+	130.6	))
=	793.8

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

Medmix AG (XSWX:MEDX) 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, Medmix AG's WACC % is 4.35%. Medmix AG's ROC % is 0.44% (calculated using TTM income statement data). Medmix AG 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.

Medmix AG ROC % Related Terms

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Medmix AG (XSWX:MEDX) Business Description

Industry

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Address

Dammstrasse 19, Baar, Zug, CHE, 6340

Website

https://www.medmix.swiss

Medmix AG delivers technologies in high-precision delivery devices and fluid mixing for applications. It is into two business areas Healthcare and Consumer & Industrial. The Healthcare business area is divided into the Dental, Drug Delivery and Surgery segments. The Consumer & Industrial business area operates through the Industry and Beauty segments. The majority of revenue is from Consumer & Industrial segment. In the Industry segment, dispensers, cartridges, and mixers are used in the construction, transportation (automotive, railways and aerospace), electronics assembly, infrastructure and DIY industries. Geographically, it operates in Europe the Middle East and Africa, the Americas and Asia-Pacific.