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Koninklijke Bam Groep NV (LTS:0LNQ) ROC % : 34.65% (As of Dec. 2024)


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What is Koninklijke Bam Groep NV 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 %. Koninklijke Bam Groep NV's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 34.65%.

As of today (2025-03-03), Koninklijke Bam Groep NV's WACC % is 7.16%. Koninklijke Bam Groep NV's ROC % is 5.41% (calculated using TTM income statement data). Koninklijke Bam Groep NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Koninklijke Bam Groep NV ROC % Historical Data

The historical data trend for Koninklijke Bam Groep NV'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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Koninklijke Bam Groep NV ROC % Chart

Koninklijke Bam Groep NV Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.30 0.70 3.70 4.42 4.81

Koninklijke Bam Groep NV Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 1.91 4.20 7.98 3.46 34.65

Koninklijke Bam Groep NV ROC % Calculation

Koninklijke Bam Groep NV's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=123.2 * ( 1 - 7.73% )/( (3233.693 + 1492.8)/ 2 )
=113.67664/2363.2465
=4.81 %

where

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))
=3932.02 - 789.111 - ( 495.575 - max(0, 2666.68 - 2575.896+495.575))
=3233.693

Koninklijke Bam Groep NV's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=147.6 * ( 1 - -260% )/( (1574.1 + 1492.8)/ 2 )
=531.36/1533.45
=34.65 %

where

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


Koninklijke Bam Groep NV  (LTS:0LNQ) 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, Koninklijke Bam Groep NV's WACC % is 7.16%. Koninklijke Bam Groep NV's ROC % is 5.41% (calculated using TTM income statement data). Koninklijke Bam Groep NV 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.


Koninklijke Bam Groep NV ROC % Related Terms

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Koninklijke Bam Groep NV Business Description

Traded in Other Exchanges
Address
Runnenburg 9, Bunnik, NLD, 3981 AZ
Koninklijke Bam Groep NV is a European construction firm with experience in mechanical, electrical, and engineering projects. It carries out residential and non-residential construction contracts and develops properties, roads, rail, healthcare, and other accommodations for various markets. The company has three reportable segments: Division Netherlands which derives key revenue, division United Kingdom and Ireland and Invesis. Belgium, Germany and International. Construction and Property- which contributes the maximum proportion of revenue), Civil engineering, and PPP (public private partnerships).

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