Daetwyler Holding AG (LTS:0QNJ) ROC % : 9.52% (As of Jun. 2024)

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What is Daetwyler Holding 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 %. Daetwyler Holding AG's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 9.52%.

As of today (2024-12-15), Daetwyler Holding AG's WACC % is 10.63%. Daetwyler Holding AG's ROC % is 9.20% (calculated using TTM income statement data). Daetwyler Holding AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Daetwyler Holding AG ROC % Historical Data

The historical data trend for Daetwyler Holding 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.

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Daetwyler Holding AG ROC % Chart

Daetwyler Holding AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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24.12

12.85

14.01

11.43

8.44

Daetwyler Holding AG Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															9.71	9.53	7.56	9.10	9.52

Daetwyler Holding AG ROC % Calculation

Daetwyler Holding AG'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 )
=	119.9 * ( 1 - 27.15% )	/	( (1087.6	+	982.4)	/ 2 )
=	87.34715	/	1035
=	8.44 %

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	))
=	1299	-	110.1	-	( 101.3	-	max(0, 190.2	-	603.9	+	101.3	))
=	1087.6

	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	))
=	1200.8	-	95.9	-	( 122.5	-	max(0, 314.8	-	574.7	+	122.5	))
=	982.4

Daetwyler Holding AG'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 )
=	135 * ( 1 - 29.95% )	/	( (982.4	+	1004.5)	/ 2 )
=	94.5675	/	993.45
=	9.52 %

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	))
=	1200.8	-	95.9	-	( 122.5	-	max(0, 314.8	-	574.7	+	122.5	))
=	982.4

	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	))
=	1180.1	-	75.9	-	( 99.7	-	max(0, 178.7	-	548.5	+	99.7	))
=	1004.5

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

Daetwyler Holding AG (LTS:0QNJ) 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, Daetwyler Holding AG's WACC % is 10.63%. Daetwyler Holding AG's ROC % is 9.20% (calculated using TTM income statement data). Daetwyler Holding 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.

Daetwyler Holding AG ROC % Related Terms

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Daetwyler Holding AG Business Description

Industry

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DAEz:UK DAE:Switzerland

Address

Gotthardstrasse 31, Altdorf, CHE, 6460

Website

https://www.datwyler.com

Daetwyler Holding AG is an international industrial supplier of elastomer products. Elastomer is a rubberlike, flexible material composed of polymers. The company focuses on supplying two markets: healthcare and industrial solutions. The healthcare segment offers components for delivery of injectable drugs and diagnostics in the pharmaceutical and medical markets. The industrial solutions segment manufactures customized system-critical components for applications in the mobility, food and beverage, oil and gas, and general industry markets. In 2020, the company discontinued its electronic and technical components segment with the sale of its distribution companies, Distrelec and Nedis. The majority of revenue comes from Europe, followed by the Americas and Asia and other markets.

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