Amer Sports Oyj (Amer Sports Oyj) ROC % : 10.10% (As of Dec. 2018)

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What is Amer Sports 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 %. Amer Sports Oyj's annualized return on capital (ROC %) for the quarter that ended in Dec. 2018 was 10.10%.

As of today (2024-05-06), Amer Sports Oyj's WACC % is 0.00%. Amer Sports Oyj's ROC % is 0.00% (calculated using TTM income statement data). Amer Sports Oyj earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Amer Sports Oyj ROC % Historical Data

The historical data trend for Amer Sports 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.

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Amer Sports Oyj ROC % Chart

Amer Sports Oyj Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

ROC %

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4.94

7.88

7.58

6.14

7.64

Amer Sports Oyj Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
ROC %	Get a 7-Day Free Trial															10.86	6.31	-3.79	12.88	10.10

Amer Sports Oyj ROC % Calculation

Amer Sports Oyj's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2018 is calculated as:

	ROC % (A: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2017 )	+	Invested Capital (A: Dec. 2018 ))	/ count )
=	237.088 * ( 1 - 25.08% )	/	( (2157.278	+	2492.264)	/ 2 )
=	177.6263296	/	2324.771
=	7.64 %

where

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	3079.408	-	497.988	-	( 424.142	-	max(0, 1113.846	-	1908.166	+	424.142	))
=	2157.278

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	3303.072	-	537.77	-	( 273.038	-	max(0, 1133.675	-	1897.838	+	273.038	))
=	2492.264

Amer Sports Oyj's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2018 is calculated as:

	ROC % (Q: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2018 )	+	Invested Capital (Q: Dec. 2018 ))	/ count )
=	379.068 * ( 1 - 24.56% )	/	( (3173.045	+	2492.264)	/ 2 )
=	285.9688992	/	2832.6545
=	10.10 %

where

	Invested Capital		(Q: Sep. 2018 )
=	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	))
=	3451.575	-	47.375	-	( 231.155	-	max(0, 1311.319	-	2030.572	+	231.155	))
=	3173.045

	Invested Capital		(Q: Dec. 2018 )
=	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	))
=	3303.072	-	537.77	-	( 273.038	-	max(0, 1133.675	-	1897.838	+	273.038	))
=	2492.264

Note: The Operating Income data used here is four times the quarterly (Dec. 2018) data.

Amer Sports Oyj (OTCPK:AGPDF) 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, Amer Sports Oyj's WACC % is 0.00%. Amer Sports Oyj's ROC % is 0.00% (calculated using TTM income statement data). Amer Sports 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.

Amer Sports Oyj ROC % Related Terms

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Amer Sports Oyj (Amer Sports Oyj) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Amer Sports Oyj (OTCPK:AGPDF) » Definitions » ROC %

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Address

Konepajankuja 6, Helsinki, FIN, FI-00510

Website

http://www.amersports.com

Amer Sports Oyj is a manufacturer of sporting goods across brands including Salomon, Wilson, and Atomic. The company organises itself into three segments: outdoor, ball sports, and fitness. The outdoor segment, which contributes the majority of company revenue, manufactures and supplies footwear, apparel, winter sports equipment, cycling components, and sports instruments. The ball sports segment, the next most significant contributor to consolidated revenue, includes racquets and team sports equipment, and golf equipment. The fitness segment manufactures and supplies fitness equipment. Europe, the Middle East, and Africa, or EMEA, and the Americas are the most significant geographical markets, providing roughly equal contributions to net sales, followed by Asia-Pacific.

Amer Sports Oyj (Amer Sports Oyj) Headlines

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