VDM Group (ASX:VMG) ROC %: -1.00% (As of Jun. 2024)


What is VDM Group ROC %?

VDM Group ASX:VMG ROC % is -1.00% as of Jun. 2024.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. VDM Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -1.00%.

As of today (2026-06-27), VDM Group's WACC % is 0.00%. VDM Group's ROC % is 0.00% (calculated using TTM income statement data). VDM Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

VDM Group  (ASX:VMG) 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, VDM Group's WACC % is 0.00%. VDM Group's ROC % is 0.00% (calculated using TTM income statement data). VDM Group 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.

VDM Group ROC % Related Terms

VDM Group ROC % Historical Data

* Premium members only.

The historical data trend for VDM Group'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.

VDM Group ROC % Chart

VDM Group Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.83 -3.81 -1.38 -2.08 -2.68

VDM Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 -0.99 -1.58 -2.14 -4.42 -1.00

VDM Group ROC % Calculation

VDM Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

ROC % (A: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2023 ) + Invested Capital (A: Jun. 2024 ))/ count )
=-0.332 * ( 1 - 0% )/( (12.178 + 12.638)/ 2 )
=-0.332/12.408
=-2.68 %

where

Invested Capital(A: 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))
=2.672 - 5.18 - ( 1.41 - max(0, 17.355 - 2.669+1.41))
=12.178

Invested Capital(A: Jun. 2024 )
=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))
=2.277 - 5.274 - ( 2.229 - max(0, 17.909 - 2.274+2.229))
=12.638

VDM Group's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-0.124 * ( 1 - 0% )/( (12.267 + 12.638)/ 2 )
=-0.124/12.4525
=-1.00 %

where

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))
=2.423 - 5.255 - ( 1.199 - max(0, 17.519 - 2.42+1.199))
=12.267

Invested Capital(Q: Jun. 2024 )
=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))
=2.277 - 5.274 - ( 2.229 - max(0, 17.909 - 2.274+2.229))
=12.638

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -1.00% mean?
VDM Group (ASX:VMG) has a ROC % of -1.00% as of Jun. 2024. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on VDM Group and its competitors.
Is VDM Group's ROC % too high?
VDM Group's current ROC % is -1.00%.
How does VDM Group's ROC % compare to PWR and J?
VDM Group's ROC % of -1.00% can be compared against companies in the Construction industry. The industry median ROC % is 4.65. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Construction company?
The median ROC % among Construction companies is 4.65, based on 1,755 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on VDM Group and its competitors. For the Construction industry, the median ROC % is 4.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. VDM Group's current ROC % is -1.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is VDM Group stock overvalued right now?
VDM Group (ASX:VMG) has a current ROC % of -1.00%. The current ROC % is -1.00%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For VDM Group (ASX:VMG), the current ROC % is -1.00% as of Jun. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

VDM Group Business Description

Address 420 Bagot Road, Unit 2, Subiaco, Subiaco, WA, AUS, 6008
VDM Group Ltd is an engineering and construction company. The company is an operationally diverse company arranged under two operating divisions: i) construction and ii) mining and exploration. Its activities involve exploration of the Cachoeiras do Binga copper project located in the Republic of Angola (Cachoeiras do Binga); exploration of the Cage Bengo Project located in the Republic of Angola (Cage Bengo); and review of new project opportunities.