TopRight Nordic AB (NGM:TOPR) ROC % : -73.98% (As of Sep. 2023)

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What is TopRight Nordic 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 %. TopRight Nordic AB's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -73.98%.

As of today (2024-06-19), TopRight Nordic AB's WACC % is 34.24%. TopRight Nordic AB's ROC % is -69.20% (calculated using TTM income statement data). TopRight Nordic AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.

TopRight Nordic AB ROC % Historical Data

The historical data trend for TopRight Nordic 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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TopRight Nordic AB ROC % Chart

TopRight Nordic AB Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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-35.80

8.74

0.92

-51.45

-28.98

TopRight Nordic AB Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROC %	Get a 7-Day Free Trial															-1.07	-75.22	-42.75	-88.12	-73.98

TopRight Nordic AB ROC % Calculation

TopRight Nordic AB's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-40.122 * ( 1 - 0.71% )	/	( (120.611	+	154.281)	/ 2 )
=	-39.8371338	/	137.446
=	-28.98 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	169.873	-	48.943	-	( 0.319	-	max(0, 93.03	-	96.906	+	0.319	))
=	120.611

	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	))
=	154.835	-	56.233	-	( 0.541	-	max(0, 131.45	-	75.771	+	0.541	))
=	154.281

TopRight Nordic AB's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-99.024 * ( 1 - -3.9% )	/	( (136.257	+	141.87)	/ 2 )
=	-102.885936	/	139.0635
=	-73.98 %

where

	Invested Capital		(Q: Jun. 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	))
=	131.223	-	69.456	-	( 2.922	-	max(0, 131.223	-	56.733	+	2.922	))
=	136.257

	Invested Capital		(Q: Sep. 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	))
=	101.484	-	71.034	-	( 1.608	-	max(0, 148.638	-	37.218	+	1.608	))
=	141.87

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

TopRight Nordic AB (NGM:TOPR) 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, TopRight Nordic AB's WACC % is 34.24%. TopRight Nordic AB's ROC % is -69.20% (calculated using TTM income statement data). TopRight Nordic 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.

TopRight Nordic AB ROC % Related Terms

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TopRight Nordic AB (NGM:TOPR) Business Description

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Address

Taptogatan 6, Stockholm, SWE, 115 26

Website

https://www.toprightnordic.com

TopRight Nordic AB is engaged in modern light technology and digital glass. The company's solutions improve road safety, help brands to be brand new and transform traditional exposure areas to interactive viewing windows. It has three business areas: BRIGHT Attention, BRIGHT Safety, and SMART Glass. BRIGHT Attention offers unique solutions to create attention. BRIGHT Safety offers standard products, customized solutions and safety kits with lighting technology that contribute to a safer existence on roads and for the professional teams working in the dark. SMART Glass offers glass surfaces that can become lighting, windows, wall and screen in one.

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