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Invalda INVL AB (FRA:WTK) ROC % : 27.67% (As of Jun. 2024)


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What is Invalda INVL AB 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 %. Invalda INVL AB's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 27.67%.

As of today (2025-03-03), Invalda INVL AB's WACC % is 8.75%. Invalda INVL AB's ROC % is 23.56% (calculated using TTM income statement data). Invalda INVL AB 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.


Invalda INVL AB ROC % Historical Data

The historical data trend for Invalda INVL AB'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.

Invalda INVL AB ROC % Chart

Invalda INVL AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.97 8.94 26.72 6.48 7.04

Invalda INVL AB Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 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 -16.28 29.27 -4.70 18.21 27.67

Invalda INVL AB ROC % Calculation

Invalda INVL AB's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=14.675 * ( 1 - 8.95% )/( (139.003 + 240.774)/ 2 )
=13.3615875/189.8885
=7.04 %

where

Invalda INVL AB'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: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=61.126 * ( 1 - -0.67% )/( (240.774 + 204.04)/ 2 )
=61.5355442/222.407
=27.67 %

where

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.


Invalda INVL AB  (FRA:WTK) 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, Invalda INVL AB's WACC % is 8.75%. Invalda INVL AB's ROC % is 23.56% (calculated using TTM income statement data). Invalda INVL AB 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.


Invalda INVL AB ROC % Related Terms

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Invalda INVL AB Business Description

Traded in Other Exchanges
Address
Gyneju Street 14, Vilnius, LTU, LT-01109
Invalda INVL AB is an asset management company. It operates through the Investment management and Investment activity segments. The Investment management segment includes pension, investment funds, alternative investments (private equity, real assets, and private debt) and portfolio management, financial brokerage, and land administration services. The Investment activity segment includes the group investment activities to the unconsolidated subsidiaries, associates, and financial assets at fair value and administrative activities of the companies. The main investment activities of the company are Agriculture; Life insurance; Facility management; Real estate; and Bank activities. The majority of the company's revenue comes from the Investment management segment.

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