Siav SpA (MIL:SIAV) ROC % : 5.14% (As of Dec. 2024)

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What is Siav 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 %. Siav SpA's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 5.14%.

As of today (2025-04-08), Siav SpA's WACC % is 6.81%. Siav SpA's ROC % is 1.87% (calculated using TTM income statement data). Siav SpA earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Siav SpA ROC % Historical Data

The historical data trend for Siav 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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Siav SpA ROC % Chart

Siav SpA Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

2.77

5.07

3.10

1.99

3.05

Siav SpA Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial			5.09	0.92	0.80	3.32	5.14

Siav SpA ROC % Calculation

Siav SpA's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	1.349 * ( 1 - -18.82% )	/	( (54.365	+	50.678)	/ 2 )
=	1.6028818	/	52.5215
=	3.05 %

where

	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	))
=	52.495	-	7.954	-	( 2.228	-	max(0, 27.671	-	17.847	+	2.228	))
=	54.365

	Invested Capital		(A: Dec. 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	))
=	51.982	-	9.845	-	( 2.685	-	max(0, 25.463	-	16.922	+	2.685	))
=	50.678

Siav SpA's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	2.288 * ( 1 - -17.33% )	/	( (53.844	+	50.678)	/ 2 )
=	2.6845104	/	52.261
=	5.14 %

where

	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	))
=	53.942	-	9.506	-	( 1.844	-	max(0, 28.58	-	19.172	+	1.844	))
=	53.844

	Invested Capital		(Q: Dec. 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	))
=	51.982	-	9.845	-	( 2.685	-	max(0, 25.463	-	16.922	+	2.685	))
=	50.678

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

Siav SpA (MIL:SIAV) 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, Siav SpA's WACC % is 6.81%. Siav SpA's ROC % is 1.87% (calculated using TTM income statement data). Siav 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.

Siav SpA ROC % Related Terms

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Siav SpA Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

Via Rossi, 5/n, Rubano, ITA, 35030

Website

https://www.siav.com

Siav SpA is a software and IT service company specializing in dematerialization, document management, and digital processes. It offers software platforms such as Archiflow Nova, Siav Connect, and Siav Frame for information and process management; Vertical software and solutions that deal with specific topics such as Silloge, Checker, MyCreditService, etc., and outsourcing services such as dematerialization and replacement storage of documents, managed through a proprietary solution (Virgilio), and B2B electronic invoicing. The company's operating segments are based on the market it operates in and include the Private Market, Central Public Administration Market (CPA), Local Public Administration Market (PAL), and Channel Market.

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