ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Zentra Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -11.53%.
As of today (2024-12-14), Zentra Group's WACC % is 7.16%. Zentra Group's ROC % is -14.10% (calculated using TTM income statement data).
Zentra Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Zentra Group ROC % Historical Data
The historical data trend for Zentra 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.
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.
Zentra Group (LSE:ZNT) 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, Zentra Group's WACC % is 7.16%. Zentra Group's ROC % is -14.10% (calculated using TTM income statement data).
Zentra 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.
Zentra Group ROC % Related Terms
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Zentra Group PLC is a property development and management company, focusing on the residential sector in the North of England, seeking out value and maximizing opportunities for investors. Its portfolio includes properties like One Meadow, Liberty House, Lincoln House, One Heritage Tower, and others. The company's operating segments are Developments, Construction, Property Services, and Corporate. The majority of its revenue is generated from the Developments segment which includes the development activities including the sales of completed developments and Co-Living property management fee. The Construction segment includes construction services provided to an internally owned and managed development, and the Property Services segment engages in property letting and management services.
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