Schott Pharma AG KGaA (CHIX:1SXPD) ROC % : 15.06% (As of Sep. 2024)

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What is Schott Pharma AG 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 %. Schott Pharma AG KGaA's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 15.06%.

As of today (2025-01-18), Schott Pharma AG KGaA's WACC % is 8.31%. Schott Pharma AG KGaA's ROC % is 15.18% (calculated using TTM income statement data). Schott Pharma AG KGaA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Schott Pharma AG KGaA ROC % Historical Data

The historical data trend for Schott Pharma AG 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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Schott Pharma AG KGaA ROC % Chart

Schott Pharma AG KGaA Annual Data

Trend

Sep20

Sep21

Sep22

Sep23

Sep24

ROC %

18.05

20.00

18.41

14.83

15.25

Schott Pharma AG KGaA Quarterly Data
	Sep20	Sep21	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial							10.70	18.20	15.49	12.56	15.06

Schott Pharma AG KGaA ROC % Calculation

Schott Pharma AG KGaA's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2024 is calculated as:

	ROC % (A: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2023 )	+	Invested Capital (A: Sep. 2024 ))	/ count )
=	189.956 * ( 1 - 18.28% )	/	( (954.441	+	1081.597)	/ 2 )
=	155.2320432	/	1018.019
=	15.25 %

where

	Invested Capital		(A: 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	))
=	1231.828	-	251.498	-	( 25.889	-	max(0, 351.146	-	468.338	+	25.889	))
=	954.441

	Invested Capital		(A: Sep. 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	))
=	1442.269	-	334.241	-	( 26.431	-	max(0, 435.48	-	588.601	+	26.431	))
=	1081.597

Schott Pharma AG KGaA's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	217.52 * ( 1 - 25.68% )	/	( (1065.104	+	1081.597)	/ 2 )
=	161.660864	/	1073.3505
=	15.06 %

where

	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	))
=	1399.033	-	304.408	-	( 29.521	-	max(0, 415.613	-	585.95	+	29.521	))
=	1065.104

	Invested Capital		(Q: Sep. 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	))
=	1442.269	-	334.241	-	( 26.431	-	max(0, 435.48	-	588.601	+	26.431	))
=	1081.597

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Schott Pharma AG KGaA (CHIX:1SXPd) 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, Schott Pharma AG KGaA's WACC % is 8.31%. Schott Pharma AG KGaA's ROC % is 15.18% (calculated using TTM income statement data). Schott Pharma AG KGaA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Schott Pharma AG KGaA ROC % Related Terms

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Schott Pharma AG KGaA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Schott Pharma AG & CO KGaA (CHIX:1SXPd) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

1SXP:Germany 1SXP:Austria

Address

Hattenbergstrasse 10, Mainz, RP, DEU, 55122

Website

https://www.schott-pharma.com

Schott Pharma AG & CO KGaA caters to the pharma, biotech and life science industry by providing containment solutions and delivery systems for injectable drugs. Its segments include; Drug Containment Solutions (DCS) and Drug Delivery Systems (DDS). The majority of the revenue is generated from Drug Containment Solutions segment which includes products like vials, cartridges and ampoules for safe drug containment. Geographically, the company generates revenue from Europe, Middle East, Africa (EMEA), Asia and South Pacific, North America and South America.

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