Garpco AB (NGM:GARPCO B) ROC % : -1.64% (As of Mar. 2025)

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What is Garpco AB 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 %. Garpco AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2025 was -1.64%.

As of today (2025-07-05), Garpco AB's WACC % is 6.36%. Garpco AB's ROC % is 0.12% (calculated using TTM income statement data). Garpco AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Garpco AB ROC % Historical Data

The historical data trend for Garpco AB'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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Garpco AB ROC % Chart

Garpco AB Annual Data

Trend

Dec21

Dec22

Dec23

Dec24

ROC %

3.27

6.79

4.59

2.30

Garpco AB Quarterly Data
	Dec21	Dec22	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25
ROC %	Get a 7-Day Free Trial					4.57	7.06	-0.89	-3.71	-1.64

Garpco AB ROC % Calculation

Garpco AB'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 )
=	14.388 * ( 1 - 45.19% )	/	( (333.208	+	352.26)	/ 2 )
=	7.8860628	/	342.734
=	2.30 %

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	))
=	400.168	-	38.972	-	( 27.988	-	max(0, 111.697	-	234.402	+	27.988	))
=	333.208

	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	))
=	429.851	-	43.624	-	( 33.967	-	max(0, 117.088	-	255.899	+	33.967	))
=	352.26

Garpco AB's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2025 is calculated as:

	ROC % (Q: Mar. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2024 )	+	Invested Capital (Q: Mar. 2025 ))	/ count )
=	-6.156 * ( 1 - 5.16% )	/	( (352.26	+	359.6)	/ 2 )
=	-5.8383504	/	355.93
=	-1.64 %

where

	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	))
=	429.851	-	43.624	-	( 33.967	-	max(0, 117.088	-	255.899	+	33.967	))
=	352.26

	Invested Capital		(Q: Mar. 2025 )
=	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	))
=	430.075	-	43.862	-	( 26.613	-	max(0, 122.15	-	263.56	+	26.613	))
=	359.6

Note: The Operating Income data used here is four times the quarterly (Mar. 2025) data.

Garpco AB (NGM:GARPCO B) 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, Garpco AB's WACC % is 6.36%. Garpco AB's ROC % is 0.12% (calculated using TTM income statement data). Garpco AB 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.

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Garpco AB Business Description

Industry

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Address

Huskvarnavagen 80, 3 tr, Jonkoping, SWE, 554 54

Website

Garpco AB is a company that operates through its subsidiaries whose business concept consists of acquiring and long-term development of small and medium-sized industrial and trading companies. Through a combination of company acquisitions and organic growth in the subsidiaries, they create a profitable company group of such a size that the individual subsidiaries' needs for both competent employees and growth capital are secured, while at the same time, it gives the shareholders a good return on invested capital.

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