Omer SpA (MIL:OMER) ROC % : 22.77% (As of Jun. 2024)

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What is Omer 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 %. Omer SpA's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 22.77%.

As of today (2024-12-12), Omer SpA's WACC % is 6.55%. Omer SpA's ROC % is 24.67% (calculated using TTM income statement data). Omer 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.

Omer SpA ROC % Historical Data

The historical data trend for Omer 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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Omer SpA ROC % Chart

Omer SpA Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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19.84

24.43

38.09

26.79

22.84

Omer SpA Semi-Annual Data
	Dec18	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial					27.53	27.78	20.84	27.05	22.77

Omer SpA ROC % Calculation

Omer 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 )
=	12.845 * ( 1 - 26.57% )	/	( (42.785	+	39.795)	/ 2 )
=	9.4320835	/	41.29
=	22.84 %

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	))
=	67.035	-	10.472	-	( 13.778	-	max(0, 15.079	-	51.365	+	13.778	))
=	42.785

	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	))
=	76.547	-	14.24	-	( 22.512	-	max(0, 19.2	-	59.517	+	22.512	))
=	39.795

Omer 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 )
=	13.31 * ( 1 - 27.85% )	/	( (39.795	+	44.556)	/ 2 )
=	9.603165	/	42.1755
=	22.77 %

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	))
=	76.547	-	14.24	-	( 22.512	-	max(0, 19.2	-	59.517	+	22.512	))
=	39.795

	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	))
=	82.168	-	17.558	-	( 20.054	-	max(0, 21.825	-	65.221	+	20.054	))
=	44.556

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

Omer SpA (MIL:OMER) 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, Omer SpA's WACC % is 6.55%. Omer SpA's ROC % is 24.67% (calculated using TTM income statement data). Omer 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.

Omer SpA ROC % Related Terms

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Omer SpA Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

9WR:Germany

Address

Via Foresto, 42, Susegana, ITA, 31058

Website

https://www.omerspa.com

Omer SpA is engaged in the design, production and sale of power tools and the relevant fasteners. Its products include Pneumatic tools and fasteners, Industrial staples under the brand's More, Omer USA, Omer Hungary, Velo, Rapter, Black Magic among others.