Anexo Group (LSE:ANX) ROC % : 6.67% (As of Jun. 2024)

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What is Anexo Group 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 %. Anexo Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 6.67%.

As of today (2024-12-14), Anexo Group's WACC % is 13.20%. Anexo Group's ROC % is 9.58% (calculated using TTM income statement data). Anexo Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Anexo Group ROC % Historical Data

The historical data trend for Anexo Group'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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Anexo Group ROC % Chart

Anexo Group Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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17.53

10.11

12.68

11.65

11.63

Anexo Group Semi-Annual Data
	Dec15	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial											12.71	10.52	11.64	12.14	6.67

Anexo Group ROC % Calculation

Anexo Group'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 )
=	40.487 * ( 1 - 34.37% )	/	( (223.861	+	233.196)	/ 2 )
=	26.5716181	/	228.5285
=	11.63 %

where

	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	))
=	246.839	-	13.929	-	( 9.049	-	max(0, 68.284	-	231.927	+	9.049	))
=	223.861

	Invested Capital		(A: Dec. 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	))
=	258.697	-	17.058	-	( 8.443	-	max(0, 75.998	-	242.852	+	8.443	))
=	233.196

Anexo Group'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 )
=	20.622 * ( 1 - 25.03% )	/	( (233.196	+	230.236)	/ 2 )
=	15.4603134	/	231.716
=	6.67 %

where

	Invested Capital		(Q: Dec. 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	))
=	258.697	-	17.058	-	( 8.443	-	max(0, 75.998	-	242.852	+	8.443	))
=	233.196

	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	))
=	261.269	-	27.876	-	( 3.157	-	max(0, 92.381	-	246.877	+	3.157	))
=	230.236

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

Anexo Group (LSE:ANX) 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, Anexo Group's WACC % is 13.20%. Anexo Group's ROC % is 9.58% (calculated using TTM income statement data). Anexo Group 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.

Anexo Group ROC % Related Terms

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Anexo Group Business Description

Industry

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9QZ:Germany

Address

100 Old Hall Street, 5th Floor, The Plaza, Liverpool, Merseyside, GBR, L3 9QJ

Website

https://www.anexo-group.com

Anexo Group PLC is a specialist integrated credit hire and legal services group focused on providing replacement vehicles and associated legal services to customers who have been involved in a non-fault accident.. The company provides an integrated end to end service to the customer including the provision of a credit hire vehicle, upfront settlement of repair and recovery charges through to the management and recovery of costs and the processing of any associated personal injury claim. The company has two main segments: credit hire vehicles for non-fault accidents and associated legal services, which include support for those provided with vehicles and other legal activities like the large loss department and emissions trading.

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