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GRRMY (Gerresheimer AG) ROC % : 4.52% (As of Aug. 2024)


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What is Gerresheimer 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 %. Gerresheimer AG's annualized return on capital (ROC %) for the quarter that ended in Aug. 2024 was 4.52%.

As of today (2024-10-31), Gerresheimer AG's WACC % is 5.33%. Gerresheimer AG's ROC % is 5.09% (calculated using TTM income statement data). Gerresheimer AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Gerresheimer AG ROC % Historical Data

The historical data trend for Gerresheimer 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.

Gerresheimer AG ROC % Chart

Gerresheimer AG Annual Data
Trend Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.01 4.83 4.87 4.39 5.33

Gerresheimer AG Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 5.04 8.21 2.65 5.09 4.52

Gerresheimer AG ROC % Calculation

Gerresheimer AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Nov. 2023 is calculated as:

ROC % (A: Nov. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Nov. 2022 ) + Invested Capital (A: Nov. 2023 ))/ count )
=248.333 * ( 1 - 28.28% )/( (3315.924 + 3371.095)/ 2 )
=178.1044276/3343.5095
=5.33 %

where

Invested Capital(A: Nov. 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))
=3419.259 - 400.271 - ( 127.252 - max(0, 1122.764 - 825.828+127.252))
=3315.924

Invested Capital(A: Nov. 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))
=3711.189 - 457.402 - ( 147.999 - max(0, 1036.76 - 919.452+147.999))
=3371.095

Gerresheimer AG's annualized Return on Capital (ROC %) for the quarter that ended in Aug. 2024 is calculated as:

ROC % (Q: Aug. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: May. 2024 ) + Invested Capital (Q: Aug. 2024 ))/ count )
=213.376 * ( 1 - 21.29% )/( (3627.35 + 3806.204)/ 2 )
=167.9482496/3716.777
=4.52 %

where

Invested Capital(Q: May. 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))
=3831.549 - 351.726 - ( 123.169 - max(0, 1097.829 - 950.302+123.169))
=3627.35

Invested Capital(Q: Aug. 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))
=3928.607 - 356.599 - ( 144.225 - max(0, 1200.714 - 966.518+144.225))
=3806.204

Note: The Operating Income data used here is four times the quarterly (Aug. 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.


Gerresheimer AG  (OTCPK:GRRMY) 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, Gerresheimer AG's WACC % is 5.33%. Gerresheimer AG's ROC % is 5.09% (calculated using TTM income statement data). Gerresheimer AG 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.


Gerresheimer AG ROC % Related Terms

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Gerresheimer AG Business Description

Traded in Other Exchanges
Address
Klaus-Bungert-Strasse 4, Duesseldorf, NW, DEU, 40468
Gerresheimer AG provides medicine packaging, drug delivery devices, and solutions with a product range for pharma, health, well-being, and biotech. The firm operates in three segments: The plastics and devices segment consists of products for simple and safe drug delivery along with packaging for liquid and solid medicines, The primary packaging glass segment produces glass packaging products for the pharma and cosmetics industries also for food and beverage industry and The advanced technologies segment works on technical and digital solutions to improve the therapy outcome for patients. The company generates the majority of its revenue in Europe, with sales in Germany contributing the major proportion of any country.

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