Industrial Stars of Italy S.p.A. (MIL:ISI) ROC % : -9.31% (As of Dec. 2013)

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What is Industrial Stars of Italy S.p.A. 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 %. Industrial Stars of Italy S.p.A.'s annualized return on capital (ROC %) for the quarter that ended in Dec. 2013 was -9.31%.

As of today (2024-06-20), Industrial Stars of Italy S.p.A.'s WACC % is 0.00%. Industrial Stars of Italy S.p.A.'s ROC % is 0.00% (calculated using TTM income statement data). Industrial Stars of Italy S.p.A. earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Industrial Stars of Italy S.p.A. ROC % Historical Data

The historical data trend for Industrial Stars of Italy S.p.A.'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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Industrial Stars of Italy S.p.A. ROC % Chart

Industrial Stars of Italy S.p.A. Annual Data

Trend

Dec13

ROC %

-9.31

Industrial Stars of Italy S.p.A. Semi-Annual Data
	Dec13
ROC %	-9.31

Industrial Stars of Italy S.p.A. ROC % Calculation

Industrial Stars of Italy S.p.A.'s annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2013 is calculated as:

	ROC % (A: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: . 20 )	+	Invested Capital (A: Dec. 2013 ))	/ count )
=	* ( 1 - % )	/	( (	+	)	/ )
=		/
=	%

where

Invested Capital

(A: . 20 )

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

))

(

max(0,

))

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

))

(

max(0,

))

Industrial Stars of Italy S.p.A.'s annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2013 is calculated as:

	ROC % (Q: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: . 20 )	+	Invested Capital (Q: Dec. 2013 ))	/ count )
=	* ( 1 - % )	/	( (	+	)	/ )
=		/
=	%

where

Invested Capital

(Q: . 20 )

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

))

(

max(0,

))

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

))

(

max(0,

))

Note: The Operating Income data used here is one times the annual (Dec. 2013) data.

Industrial Stars of Italy S.p.A. (MIL:ISI) 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, Industrial Stars of Italy S.p.A.'s WACC % is 0.00%. Industrial Stars of Italy S.p.A.'s ROC % is 0.00% (calculated using TTM income statement data). Industrial Stars of Italy S.p.A. 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.

Industrial Stars of Italy S.p.A. ROC % Related Terms

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Industrial Stars of Italy S.p.A. (MIL:ISI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Industrial Stars of Italy S.p.A. (MIL:ISI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.indstars.it

Industrial Stars of Italy S.p.A. is an investment company.

Industrial Stars of Italy S.p.A. (MIL:ISI) Headlines

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