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Intercos SpA (LTS:0AAR) ROC % : 0.00% (As of Dec. 2023)


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What is Intercos SpA 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 %. Intercos SpA's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 0.00%.

As of today (2024-12-14), Intercos SpA's WACC % is 5.70%. Intercos SpA's ROC % is 3.34% (calculated using TTM income statement data). Intercos SpA earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Intercos SpA ROC % Historical Data

The historical data trend for Intercos SpA'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.

Intercos SpA ROC % Chart

Intercos SpA Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial 10.69 0.12 1.69 11.23 10.90

Intercos SpA Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Dec22 Dec23 Jun24
ROC % Get a 7-Day Free Trial Premium Member Only 8.57 12.38 - - 6.02

Intercos SpA ROC % Calculation

Intercos SpA'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 )
=92.066 * ( 1 - 27.58% )/( (543.408 + 680.339)/ 2 )
=66.6741972/611.8735
=10.90 %

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))
=985.137 - 247.421 - ( 194.308 - max(0, 333.543 - 559.713+194.308))
=543.408

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))
=980.932 - 248.551 - ( 158.134 - max(0, 461.385 - 513.427+158.134))
=680.339

Intercos SpA's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2022 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=0 * ( 1 - 0% )/( (543.408 + 680.339)/ 2 )
=0/611.8735
=0.00 %

where

Invested Capital(Q: 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))
=985.137 - 247.421 - ( 194.308 - max(0, 333.543 - 559.713+194.308))
=543.408

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))
=980.932 - 248.551 - ( 158.134 - max(0, 461.385 - 513.427+158.134))
=680.339

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) 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.


Intercos SpA  (LTS:0AAR) 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, Intercos SpA's WACC % is 5.70%. Intercos SpA's ROC % is 3.34% (calculated using TTM income statement data). Intercos SpA 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.


Intercos SpA ROC % Related Terms

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Intercos SpA Business Description

Traded in Other Exchanges
Address
Via Marconi 84, Agrate Brianza, ITA, 20864
Intercos SpA is engaged in the manufacturing of cosmetics. Its offerings include color cosmetics, pencils, nail polish, skincare, and personal care products.

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