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Tick Trading Software AG (FRA:TBX0) ROC % : 72.54% (As of Sep. 2024)


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What is Tick Trading Software 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 %. Tick Trading Software AG's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 72.54%.

As of today (2025-03-17), Tick Trading Software AG's WACC % is 5.19%. Tick Trading Software AG's ROC % is 61.21% (calculated using TTM income statement data). Tick Trading Software 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.


Tick Trading Software AG ROC % Historical Data

The historical data trend for Tick Trading Software 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.

Tick Trading Software AG ROC % Chart

Tick Trading Software AG Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 143.49 391.68 104.69 42.14 59.67

Tick Trading Software AG Semi-Annual Data
Sep13 Sep14 Sep15 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 77.89 79.57 16.84 51.68 72.54

Tick Trading Software AG ROC % Calculation

Tick Trading Software AG'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 )
=1.758 * ( 1 - 31.96% )/( (2.039 + 1.97)/ 2 )
=1.1961432/2.0045
=59.67 %

where

Tick Trading Software AG'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: Mar. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=2.04 * ( 1 - 32.03% )/( (1.853 + 1.97)/ 2 )
=1.386588/1.9115
=72.54 %

where

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


Tick Trading Software AG  (FRA:TBX0) 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, Tick Trading Software AG's WACC % is 5.19%. Tick Trading Software AG's ROC % is 61.21% (calculated using TTM income statement data). Tick Trading Software 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.


Tick Trading Software AG ROC % Related Terms

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Tick Trading Software AG Business Description

Traded in Other Exchanges
N/A
Address
Berliner Allee 59, Dusseldorf,, NW, DEU, 40212
Tick Trading Software AG develops and distributes software packages for professional trading. The company's products are the TBMX Trading Platform, tick-TS Cloud, e-Trading Compliance Monitor, and others. tick Trading Software AG is active in the field of programming IT software; The focus here is on the programming of EDP software in the financial services segment (stock market software, trading software, etc.). In addition, it offers its customers "Software as a Service" housing and hosting of complex server systems for stock exchange trading in combination with its software solutions.
Executives
Carsten Schölzki Board of Directors

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