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Aryzta AG (CHIX:ARYNZ) ROC % : 8.66% (As of Jun. 2024)


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What is Aryzta AG 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 %. Aryzta AG's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 8.66%.

As of today (2024-10-31), Aryzta AG's WACC % is 3.50%. Aryzta AG's ROC % is 8.77% (calculated using TTM income statement data). Aryzta AG 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.


Aryzta AG ROC % Historical Data

The historical data trend for Aryzta AG'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.

* Premium members only.

Aryzta AG ROC % Chart

Aryzta AG Annual Data
Trend Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.13 0.44 0.37 -0.71 0.38

Aryzta AG Semi-Annual Data
Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 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 9.39 6.26 7.15 8.64 8.66

Aryzta AG ROC % Calculation

Aryzta AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2022 is calculated as:

ROC % (A: Jul. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jul. 2021 ) + Invested Capital (A: Jul. 2022 ))/ count )
=88.918 * ( 1 - 91.63% )/( (2133.984 + 1747.66)/ 2 )
=7.4424366/1940.822
=0.38 %

where

Invested Capital(A: Jul. 2021 )
=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))
=2237.87 - 267.955 - ( 185.323 - max(0, 726.546 - 562.477+185.323))
=2133.984

Invested Capital(A: Jul. 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))
=2055.27 - 306.623 - ( 242.574 - max(0, 513.768 - 514.755+242.574))
=1747.66

Aryzta AG'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: Jul. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=164.714 * ( 1 - 16.4% )/( (1701.564 + 1480.205)/ 2 )
=137.700904/1590.8845
=8.66 %

where

Invested Capital(Q: Jul. 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))
=1897.928 - 336.376 - ( 126.213 - max(0, 552.521 - 412.509+126.213))
=1701.564

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))
=1821.466 - 491.831 - ( 85.724 - max(0, 519.732 - 369.162+85.724))
=1480.205

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

* 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.


Aryzta AG  (CHIX:ARYNz) 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, Aryzta AG's WACC % is 3.50%. Aryzta AG's ROC % is 8.77% (calculated using TTM income statement data). Aryzta AG 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.


Aryzta AG ROC % Related Terms

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Aryzta AG Business Description

Traded in Other Exchanges
Address
Ifangstrasse 9, Schlieren, CHE, 8952
Aryzta AG is an international specialist food company. Geographically, it has a presence in Switzerland, Germany, France, and other countries. By product segment, bread rolls and artisan loaves is the substantial segment, followed by sweet baked & morning goods, and Savoury & Other. The Company has two operating and reporting segments, ARYZTA Europe and ARYZTA Rest of World, which comprise the continuing operations of the Group.

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