Avio SpA (MIL:AVIO) ROC % : 1.11% (As of Dec. 2023)

View and export this data going back to 2015. Start your Free Trial

What is Avio 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 %. Avio SpA's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 1.11%.

As of today (2024-05-17), Avio SpA's WACC % is 7.35%. Avio SpA's ROC % is 0.19% (calculated using TTM income statement data). Avio SpA earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Avio SpA ROC % Historical Data

The historical data trend for Avio 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.

Avio SpA ROC % Chart

Avio SpA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

2.73

1.97

0.54

0.37

0.20

Avio SpA Semi-Annual Data
	Dec14	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial													1.81	-1.22	2.02	-0.66	1.11

Avio SpA ROC % Calculation

Avio 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 )
=	2.322 * ( 1 - 0.26% )	/	( (1240.025	+	1021.957)	/ 2 )
=	2.3159628	/	1130.991
=	0.20 %

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	))
=	1285.356	-	109.248	-	( 131.403	-	max(0, 849.165	-	785.248	+	131.403	))
=	1240.025

	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	))
=	1055.105	-	131.318	-	( 95.593	-	max(0, 627.668	-	529.498	+	95.593	))
=	1021.957

Avio 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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	12.752 * ( 1 - -1.5% )	/	( (1315.824	+	1021.957)	/ 2 )
=	12.94328	/	1168.8905
=	1.11 %

where

	Invested Capital		(Q: Jun. 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	))
=	1340.109	-	111.39	-	( 126.607	-	max(0, 923.228	-	836.123	+	126.607	))
=	1315.824

	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	))
=	1055.105	-	131.318	-	( 95.593	-	max(0, 627.668	-	529.498	+	95.593	))
=	1021.957

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

Avio SpA (MIL:AVIO) 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, Avio SpA's WACC % is 7.35%. Avio SpA's ROC % is 0.19% (calculated using TTM income statement data). Avio 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.

Avio SpA ROC % Related Terms

Thank you for viewing the detailed overview of Avio SpA's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Avio SpA (MIL:AVIO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Avio SpA (MIL:AVIO) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

0R9S:UK 2ZP:Germany

Address

Via Latina, snc (SP 600 Ariana Km 5,2), Colleferro, Rome, ITA, 00034

Website

https://www.avio.com

Avio SpA is an international group engaged in the construction and development of space launchers, solid and liquid propulsion systems for space travel. The firm is a prime contractor for the Vega program and a sub-contractor for the Ariane program, both financed by the European Space Agency (ESA), placing Italy among the limited number of countries capable of producing a complete spacecraft.

Avio SpA (MIL:AVIO) Headlines

No Headlines