Theon International (FRA:W8C) ROC % : 40.21% (As of Jun. 2024)

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What is Theon International 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 %. Theon International's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 40.21%.

As of today (2024-12-11), Theon International's WACC % is 8.86%. Theon International's ROC % is 20.11% (calculated using TTM income statement data). Theon International 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.

Theon International ROC % Historical Data

The historical data trend for Theon International'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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Theon International ROC % Chart

Theon International Annual Data

Trend

Dec20

Dec21

ROC %

38.52

72.17

Theon International Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Jun23	Jun24
ROC %	Get a 7-Day Free Trial			50.82	85.71	36.12	20.13	40.21

Theon International ROC % Calculation

Theon International's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	25.507 * ( 1 - 21.6% )	/	( (21.323	+	34.098)	/ 2 )
=	19.997488	/	27.7105
=	72.17 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	45.146	-	8.857	-	( 14.966	-	max(0, 22.242	-	37.982	+	14.966	))
=	21.323

	Invested Capital		(A: Dec. 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	))
=	71.936	-	11.344	-	( 26.494	-	max(0, 29.194	-	60.576	+	26.494	))
=	34.098

Theon International'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: Jun. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	72.898 * ( 1 - 22.59% )	/	( (0	+	140.326)	/ 1 )
=	56.4303418	/	140.326
=	40.21 %

where

	Invested Capital		(Q: 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	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	))
=	322.968	-	57.507	-	( 125.135	-	max(0, 96.73	-	295.375	+	125.135	))
=	140.326

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

Theon International (FRA:W8C) 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, Theon International's WACC % is 8.86%. Theon International's ROC % is 20.11% (calculated using TTM income statement data). Theon International 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.

Theon International ROC % Related Terms

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Theon International Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Theon International PLC (FRA:W8C) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

THEON:Netherlands W8C:Germany

Address

57, Ioannou Metaxa Street, Koropi, GRC, GR-19441

Website

http://www.theon.com

Theon International PLC is engaged in providing Night Vision and Thermal Imaging Systems for military and security applications. The main product lines of the company include Night Vision Monoculars and Binoculars, Family of Night Vision Sights, Clip-on Night Sights, Night Driver's Viewers, Digital day and night cameras and upgrade kits for armoured vehicles, Thermal Stand-alone and Clip-on uncooled Sights and Vehicle and Platform based Thermal imaging systems.

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