Azimut Holding SPA (Azimut Holding SPA) ROC % : 4.46% (As of Dec. 2023)

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What is Azimut Holding 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 %. Azimut Holding SPA's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 4.46%.

As of today (2024-05-01), Azimut Holding SPA's WACC % is 9.35%. Azimut Holding SPA's ROC % is 4.72% (calculated using TTM income statement data). Azimut Holding SPA earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Azimut Holding SPA ROC % Historical Data

The historical data trend for Azimut Holding 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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Azimut Holding SPA ROC % Chart

Azimut Holding SPA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.41

2.24

3.57

1.87

5.04

Azimut Holding SPA Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															-8.34	4.25	4.95	5.22	4.46

Azimut Holding SPA ROC % Calculation

Azimut Holding SPA'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 )
=	670.764 * ( 1 - 26.73% )	/	( (9189.173	+	10298.826)	/ 2 )
=	491.4687828	/	9743.9995
=	5.04 %

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	))
=	10070.599	-	548.784	-	( 332.642	-	max(0, 550.09	-	1034.088	+	332.642	))
=	9189.173

	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	))
=	10885.7	-	217.721	-	( 523.956	-	max(0, 217.721	-	586.874	+	523.956	))
=	10298.826

Azimut Holding SPA'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: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	665.38 * ( 1 - 32.35% )	/	( (9900.573	+	10298.826)	/ 2 )
=	450.12957	/	10099.6995
=	4.46 %

where

	Invested Capital		(Q: Sep. 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	))
=	10419.213	-	164.567	-	( 492.873	-	max(0, 164.567	-	518.64	+	492.873	))
=	9900.573

	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	))
=	10885.7	-	217.721	-	( 523.956	-	max(0, 217.721	-	586.874	+	523.956	))
=	10298.826

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

Azimut Holding SPA (OTCPK:AZIHF) 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, Azimut Holding SPA's WACC % is 9.35%. Azimut Holding SPA's ROC % is 4.72% (calculated using TTM income statement data). Azimut Holding 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.

Azimut Holding SPA ROC % Related Terms

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Azimut Holding SPA (Azimut Holding SPA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Azimut Holding SPA (OTCPK:AZIHF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

AZM:Italy AZMm:UK 0MHJ:UK HDB:Germany

Address

Via Cusani 4, Milan, ITA, 20121

Website

https://www.azimut.it

Azimut Holding SPA is a large independent asset management firm operating primarily in Italy but with an increasingly global presence. In Italy, its capital management division sells and manages Italian mutual funds, Italian hedge funds, and is active in the discretionary management of individual investment portfolios. Its international business operations involve the sale, management, and distribution of financial and insurance products. Its portfolio solutions encompass a broad array of strategies that cut across various traditional and alternative asset classes. A majority of its revenue is derived from recurring fees from assets under management.

Azimut Holding SPA (Azimut Holding SPA) Headlines

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