Borussia Dortmund GmbH KGaA (Borussia Dortmund GmbH KGaA) ROC % : 11.79% (As of Dec. 2023)

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What is Borussia Dortmund GmbH KGaA 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 %. Borussia Dortmund GmbH KGaA's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 11.79%.

As of today (2024-05-01), Borussia Dortmund GmbH KGaA's WACC % is 9.11%. Borussia Dortmund GmbH KGaA's ROC % is 7.00% (calculated using TTM income statement data). Borussia Dortmund GmbH KGaA earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Borussia Dortmund GmbH KGaA ROC % Historical Data

The historical data trend for Borussia Dortmund GmbH KGaA'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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Borussia Dortmund GmbH KGaA ROC % Chart

Borussia Dortmund GmbH KGaA Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

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3.75

-8.89

-15.31

-5.70

3.30

Borussia Dortmund GmbH KGaA 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															1.92	-12.04	-9.91	34.55	11.79

Borussia Dortmund GmbH KGaA ROC % Calculation

Borussia Dortmund GmbH KGaA's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	18.322 * ( 1 - 11.41% )	/	( (437.654	+	547.353)	/ 2 )
=	16.2314598	/	492.5035
=	3.30 %

where

	Invested Capital		(A: Jun. 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	))
=	484.6	-	89.975	-	( 11.174	-	max(0, 145.092	-	102.063	+	11.174	))
=	437.654

	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	))
=	554.534	-	104.583	-	( 4.871	-	max(0, 174.443	-	77.041	+	4.871	))
=	547.353

Borussia Dortmund GmbH KGaA'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 )
=	81.008 * ( 1 - 2.67% )	/	( (692.565	+	644.399)	/ 2 )
=	78.8450864	/	668.482
=	11.79 %

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	))
=	682.679	-	114.871	-	( 12.291	-	max(0, 261.657	-	136.9	+	12.291	))
=	692.565

	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	))
=	669.975	-	120.266	-	( 3.324	-	max(0, 209.294	-	114.604	+	3.324	))
=	644.399

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

Borussia Dortmund GmbH KGaA (OTCPK:BORUF) 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, Borussia Dortmund GmbH KGaA's WACC % is 9.11%. Borussia Dortmund GmbH KGaA's ROC % is 7.00% (calculated using TTM income statement data). Borussia Dortmund GmbH KGaA 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.

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Borussia Dortmund GmbH KGaA (Borussia Dortmund GmbH KGaA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Borussia Dortmund GmbH & Co KGaA (OTCPK:BORUF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

0DVE:UK BVB:Germany BVB:Germany BVB:Germany BVB:Germany BVB:Austria

Address

Rheinlanddamm 207-209, Dortmund, NW, DEU, 44137

Website

https://www.bvb.de/aktie/eng

Borussia Dortmund GmbH & Co KGaA operates football club. The company operates its business through the following segments; Borussia Dortmund GmbH & Co KGaA operates a football club including a professional football squad and leverages the associated revenue potential arising from the transfer of players, catering, TV marketing, sponsorship, and ticketing. BVB Merchandising segment consists of the separate merchandising business. BVB Event and Catering Gmbh segment conducts tours, provides and arranges for event staffing services and planning and organising, catering and steering and conducting events of all types. Besttravel dortmund Gmbh segment comprises arranging travel by air, rail and ship as well. The firm earns the majority of its revenues from Borussia Dortmund GmbH & Co KGaA.