Mota-Engil Africa NV (LTS:0R6D) ROC % : 15.97% (As of Dec. 2014)

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What is Mota-Engil Africa 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 %. Mota-Engil Africa NV's annualized return on capital (ROC %) for the quarter that ended in Dec. 2014 was 15.97%.

As of today (2024-06-22), Mota-Engil Africa NV's WACC % is 0.00%. Mota-Engil Africa NV's ROC % is 30.33% (calculated using TTM income statement data). Mota-Engil Africa NV generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Mota-Engil Africa NV ROC % Historical Data

The historical data trend for Mota-Engil Africa 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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Mota-Engil Africa NV ROC % Chart

Mota-Engil Africa NV Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

ROC %

11.27

10.45

0.02

15.97

Mota-Engil Africa NV Semi-Annual Data
	Dec11	Dec12	Dec13	Dec14
ROC %	11.27	10.45	0.02	15.97

Mota-Engil Africa NV ROC % Calculation

Mota-Engil Africa NV's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2014 is calculated as:

	ROC % (A: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2013 )	+	Invested Capital (A: Dec. 2014 ))	/ count )
=	101.618 * ( 1 - 19.21% )	/	( (1.01	+	1027.343)	/ 2 )
=	82.0971822	/	514.1765
=	15.97 %

where

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	1.215	-	0.112	-	( 0.148	-	max(0, 1.122	-	1.215	+	0.148	))
=	1.01

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	1694.721	-	543.564	-	( 123.814	-	max(0, 989.449	-	1198.609	+	123.814	))
=	1027.343

Mota-Engil Africa NV's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2014 is calculated as:

	ROC % (Q: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2013 )	+	Invested Capital (Q: Dec. 2014 ))	/ count )
=	101.618 * ( 1 - 19.21% )	/	( (1.01	+	1027.343)	/ 2 )
=	82.0971822	/	514.1765
=	15.97 %

where

	Invested Capital		(Q: Dec. 2013 )
=	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	))
=	1.215	-	0.112	-	( 0.148	-	max(0, 1.122	-	1.215	+	0.148	))
=	1.01

	Invested Capital		(Q: Dec. 2014 )
=	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	))
=	1694.721	-	543.564	-	( 123.814	-	max(0, 989.449	-	1198.609	+	123.814	))
=	1027.343

Note: The Operating Income data used here is one times the annual (Dec. 2014) data.

Mota-Engil Africa NV (LTS:0R6D) 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, Mota-Engil Africa NV's WACC % is 0.00%. Mota-Engil Africa NV's ROC % is 30.33% (calculated using TTM income statement data). Mota-Engil Africa NV generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Mota-Engil Africa NV ROC % Related Terms

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Mota-Engil Africa NV (LTS:0R6D) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.africa.mota-engil.com

Mota-Engil Africa NV was incorporated on October 31, 2012 by a notarial deed of incorporation as a private company with limited liability under the laws of the Netherlands. The Company is a provider of integrated engineering and construction services. The Company also provides other services, across its target markets in Sub-Saharan Africa. Its portfolio of services ranges from Engineering and Construction which includes infrastructure such as roads, railways, bridges and dams, mining services, civil construction works and real estate construction and services, Logistics which includes ports and other infrastructure management and Environment and Services which includes waste management and collection and water treatment and distribution. The Company currently operates in ten countries comprising its primary markets of Angola, Malawi and Mozambique as well as its other markets of Cape Verde, Ghana, SÃ£o TomÃ© and PrÃncipe, South Africa, Uganda, Zambia and Zimbabwe.

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