FRBNW (Forbion European Acquisition) ROC %: -7.32% (As of Sep. 2023)


FRBNW Forbion European Acquisition Corp FRBNW
18 GF Score
Price $0.74
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What is Forbion European Acquisition ROC %?

Forbion European Acquisition FRBNW 18 ROC % is -7.32% as of Sep. 2023. GuruFocus rates FRBNW with a GF Score™ of 18/100.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Forbion European Acquisition's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -7.32%.

As of today (2026-06-25), Forbion European Acquisition's WACC % is 10.07%. Forbion European Acquisition's ROC % is -6.74% (calculated using TTM income statement data). Forbion European Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Forbion European Acquisition  (NAS:FRBNW) 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, Forbion European Acquisition's WACC % is 10.07%. Forbion European Acquisition's ROC % is -6.74% (calculated using TTM income statement data). Forbion European Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.

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.

Forbion European Acquisition ROC % Related Terms

Forbion European Acquisition ROC % Historical Data

* Premium members only.

The historical data trend for Forbion European Acquisition'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.

Forbion European Acquisition ROC % Chart

Forbion European Acquisition Annual Data
Trend Dec21 Dec22
ROC %
0.00 -1.40

Forbion European Acquisition Quarterly Data
Jul21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
ROC % Get a 7-Day Free Trial -1.61 -1.50 -5.34 -12.62 -7.32
FRBNW
18GF Score
Forbion European Acquisition Corp FRBNW
ROC % is just one metric. See GF Score™, valuation, warning signs, and more.
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Forbion European Acquisition ROC % Calculation

Forbion European Acquisition's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=-1.831 * ( 1 - 0% )/( (130.05 + 131.531)/ 2 )
=-1.831/130.7905
=-1.40 %

where

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))
=131.446 - 0.327 - ( 1.069 - max(0, 0.327 - 1.568+1.069))
=130.05

Invested Capital(A: Dec. 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))
=132.043 - 0.894 - ( 0.314 - max(0, 0.894 - 0.512+0.314))
=131.531

Forbion European Acquisition's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

ROC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=-10.296 * ( 1 - 0% )/( (138.251 + 143.019)/ 2 )
=-10.296/140.635
=-7.32 %

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))
=136.096 - 5.542 - ( 0.269 - max(0, 8.007 - 0.31+0.269))
=138.251

Invested Capital(Q: 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))
=138.945 - 7.462 - ( 0.086 - max(0, 11.642 - 0.106+0.086))
=143.019

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -7.32% mean?
Forbion European Acquisition (FRBNW) has a ROC % of -7.32% as of Sep. 2023. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Forbion European Acquisition and its competitors.
Is Forbion European Acquisition's ROC % too high?
Forbion European Acquisition's current ROC % is -7.32%. Overall, Forbion European Acquisition has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Forbion European Acquisition's ROC % compare to RRAC and SVII?
Forbion European Acquisition's ROC % of -7.32% can be compared against companies in the Diversified Financial Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Diversified Financial Services company?
A good ROC % depends on the Diversified Financial Services industry context. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Forbion European Acquisition and its competitors. Forbion European Acquisition's current ROC % is -7.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forbion European Acquisition stock overvalued right now?
Forbion European Acquisition (FRBNW) has a current ROC % of -7.32%. The current ROC % is -7.32%. Forbion European Acquisition's overall GF Score™ is 18/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Forbion European Acquisition (FRBNW), the current ROC % is -7.32% as of Sep. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Forbion European Acquisition Business Description

Address 4001 Kennett Pike, Suite 302, Wilmington, DE, USA, 19807
Forbion European Acquisition Corp is a blank check company.
18GF Score

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