Portobello SpA (MIL:POR) ROC % : -19.87% (As of Jun. 2024)

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What is Portobello 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 %. Portobello SpA's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -19.87%.

As of today (2024-12-15), Portobello SpA's WACC % is 6.47%. Portobello SpA's ROC % is -52.49% (calculated using TTM income statement data). Portobello SpA earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Portobello SpA ROC % Historical Data

The historical data trend for Portobello 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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Portobello SpA ROC % Chart

Portobello SpA Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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21.21

18.78

18.08

11.56

-55.79

Portobello SpA Semi-Annual Data
	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial									9.36	14.13	-24.18	-84.25	-19.87

Portobello SpA ROC % Calculation

Portobello 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 )
=	-45.954 * ( 1 - 8.12% )	/	( (89.349	+	62.023)	/ 2 )
=	-42.2225352	/	75.686
=	-55.79 %

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	))
=	114.288	-	21.836	-	( 3.103	-	max(0, 40.067	-	99.295	+	3.103	))
=	89.349

	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	))
=	116.373	-	53.268	-	( 1.082	-	max(0, 84.401	-	99.699	+	1.082	))
=	62.023

Portobello 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 )
=	-10.044 * ( 1 - -30.8% )	/	( (62.023	+	70.196)	/ 2 )
=	-13.137552	/	66.1095
=	-19.87 %

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	))
=	116.373	-	53.268	-	( 1.082	-	max(0, 84.401	-	99.699	+	1.082	))
=	62.023

	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	))
=	129.117	-	57.533	-	( 1.388	-	max(0, 103.877	-	114.186	+	1.388	))
=	70.196

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

Portobello SpA (MIL:POR) 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, Portobello SpA's WACC % is 6.47%. Portobello SpA's ROC % is -52.49% (calculated using TTM income statement data). Portobello 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.

Portobello SpA ROC % Related Terms

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Portobello SpA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Portobello SpA (MIL:POR) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Piazzale della Stazione Snc, Pomezia, ITA, 00071

Website

https://www.portobellospa.com

Portobello SpA operates in media bartering. The company uses advertising space to purchase products from the brands that it resells in stores at the lowest prices on the market. retail store. The company offers electronic goods, housewares, home textile products, fashion products, and many more.