Arvo Sijoitusosuuskunta (OHEL:ARVOSK) ROC % : 2.56% (As of Dec. 2024)

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What is Arvo Sijoitusosuuskunta 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 %. Arvo Sijoitusosuuskunta's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 2.56%.

As of today (2025-07-07), Arvo Sijoitusosuuskunta's WACC % is 8.09%. Arvo Sijoitusosuuskunta's ROC % is 2.20% (calculated using TTM income statement data). Arvo Sijoitusosuuskunta earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Arvo Sijoitusosuuskunta ROC % Historical Data

The historical data trend for Arvo Sijoitusosuuskunta'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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Arvo Sijoitusosuuskunta ROC % Chart

Arvo Sijoitusosuuskunta Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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1.48

4.94

-1.57

1.60

2.23

Arvo Sijoitusosuuskunta Semi-Annual Data
	Dec17	Dec18	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial							-38.53	1.64	1.58	1.83	2.56

Arvo Sijoitusosuuskunta ROC % Calculation

Arvo Sijoitusosuuskunta'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 )
=	2.467 * ( 1 - 7.09% )	/	( (104.306	+	101.249)	/ 2 )
=	2.2920897	/	102.7775
=	2.23 %

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	))
=	108.471	-	0.325	-	( 3.84	-	max(0, 0.713	-	74.144	+	3.84	))
=	104.306

	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	))
=	106.832	-	0.136	-	( 5.447	-	max(0, 0.839	-	72.669	+	5.447	))
=	101.249

Arvo Sijoitusosuuskunta'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 )
=	2.84 * ( 1 - 6.59% )	/	( (106.089	+	101.249)	/ 2 )
=	2.652844	/	103.669
=	2.56 %

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	))
=	108.11	-	0.081	-	( 1.94	-	max(0, 0.888	-	75.1	+	1.94	))
=	106.089

	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	))
=	106.832	-	0.136	-	( 5.447	-	max(0, 0.839	-	72.669	+	5.447	))
=	101.249

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

Arvo Sijoitusosuuskunta (OHEL:ARVOSK) 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, Arvo Sijoitusosuuskunta's WACC % is 8.09%. Arvo Sijoitusosuuskunta's ROC % is 2.20% (calculated using TTM income statement data). Arvo Sijoitusosuuskunta 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.

Arvo Sijoitusosuuskunta ROC % Related Terms

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Arvo Sijoitusosuuskunta Business Description

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GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Arvo Sijoitusosuuskunta (OHEL:ARVOSK) » Definitions » ROC %

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Address

Kauppakatu 10, Ylivieska, FIN, 84100

Website

https://www.arvosijoitus.fi

Arvo Sijoitusosuuskunta is an enabler of growth. Its investments are directed toward Finnish small and medium-sized enterprises seeking growth in their operations. Arvo takes an active role in developing target companies and enabling industry consolidation. It makes investments as minority equity investments, loan investments, or a combination of both. In addition, it can offer short-term bridge financing for a maximum period of 24 months. The majority of the returns from its investment activities are distributed to members as cooperative interest.

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