Gentili Mosconi SpA (MIL:GM) ROC % : 11.52% (As of Jun. 2024)

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What is Gentili Mosconi 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 %. Gentili Mosconi SpA's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 11.52%.

As of today (2025-03-15), Gentili Mosconi SpA's WACC % is 9.47%. Gentili Mosconi SpA's ROC % is 15.32% (calculated using TTM income statement data). Gentili Mosconi SpA 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.

Gentili Mosconi SpA ROC % Historical Data

The historical data trend for Gentili Mosconi 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.

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Gentili Mosconi SpA ROC % Chart

Gentili Mosconi SpA Annual Data

Trend

Dec20

Dec21

Dec22

ROC %

2.94

24.54

39.27

Gentili Mosconi SpA Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial			40.27	37.89	30.30	19.44	11.52

Gentili Mosconi SpA ROC % Calculation

Gentili Mosconi SpA's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	9.568 * ( 1 - 24.24% )	/	( (16.279	+	20.637)	/ 2 )
=	7.2487168	/	18.458
=	39.27 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	28.789	-	10.359	-	( 2.151	-	max(0, 13.014	-	24.744	+	2.151	))
=	16.279

	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	))
=	34.53	-	10.57	-	( 3.323	-	max(0, 13.193	-	30.054	+	3.323	))
=	20.637

Gentili Mosconi SpA'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 )
=	4.162 * ( 1 - 31.68% )	/	( (23.833	+	25.512)	/ 2 )
=	2.8434784	/	24.6725
=	11.52 %

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	))
=	50.786	-	8.163	-	( 18.79	-	max(0, 9.787	-	41.96	+	18.79	))
=	23.833

	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	))
=	51.35	-	7.924	-	( 17.914	-	max(0, 9.781	-	39.459	+	17.914	))
=	25.512

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

Gentili Mosconi SpA (MIL:GM) 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, Gentili Mosconi SpA's WACC % is 9.47%. Gentili Mosconi SpA's ROC % is 15.32% (calculated using TTM income statement data). Gentili Mosconi SpA 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.

Gentili Mosconi SpA ROC % Related Terms

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Gentili Mosconi SpA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Gentili Mosconi SpA (MIL:GM) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Via Tevere 7/9, Casnate con Bernate, Como, ITA, 22070

Website

https://www.gentilimosconi.it

Gentili Mosconi SpA creates and produces printed and dyed fabrics, with jacquard and yarn-dyed processes, fabrics with original prints or garment prints and other special processes for the most important national and international fashion brands.