Dovre Group Oyj (OHEL:DOV1V) ROC % : -52.00% (As of Dec. 2024)

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What is Dovre Group Oyj 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 %. Dovre Group Oyj's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -52.00%.

As of today (2025-04-05), Dovre Group Oyj's WACC % is 8.84%. Dovre Group Oyj's ROC % is -31.02% (calculated using TTM income statement data). Dovre Group Oyj earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Dovre Group Oyj ROC % Historical Data

The historical data trend for Dovre Group Oyj'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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Dovre Group Oyj ROC % Chart

Dovre Group Oyj Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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4.53

9.74

11.11

-0.60

-32.28

Dovre Group Oyj Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial															12.52	7.62	-5.19	-9.10	-52.00

Dovre Group Oyj ROC % Calculation

Dovre Group Oyj'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 )
=	-21.817 * ( 1 - 0% )	/	( (68.502	+	66.692)	/ 2 )
=	-21.817	/	67.597
=	-32.28 %

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	))
=	87.986	-	11.577	-	( 7.907	-	max(0, 44.715	-	58.73	+	7.907	))
=	68.502

	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	))
=	91.999	-	22.765	-	( 2.542	-	max(0, 72.212	-	82.685	+	2.542	))
=	66.692

Dovre Group Oyj'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 )
=	-37.59 * ( 1 - 1.45% )	/	( (75.795	+	66.692)	/ 2 )
=	-37.044945	/	71.2435
=	-52.00 %

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	))
=	97.938	-	13.47	-	( 10.625	-	max(0, 59.029	-	67.702	+	10.625	))
=	75.795

	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	))
=	91.999	-	22.765	-	( 2.542	-	max(0, 72.212	-	82.685	+	2.542	))
=	66.692

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

Dovre Group Oyj (OHEL:DOV1V) 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, Dovre Group Oyj's WACC % is 8.84%. Dovre Group Oyj's ROC % is -31.02% (calculated using TTM income statement data). Dovre Group Oyj 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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Dovre Group Oyj Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Dovre Group Oyj (OHEL:DOV1V) » Definitions » ROC %

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0JCD:UK

Address

Ahventie 4 B, Espoo, FIN, 02170

Website

https://www.dovregroup.com

Dovre Group Oyj is a company engaged in providing project management services. The group has three business areas: Project Personnel, Renewable Energy, and Consulting. Project personnel business provides project professionals for large investment projects, mainly in the oil and gas industry. Its Consulting business provides advisory services for the effective development and execution of large projects in the Nordic countries. The Renewable Energy business area offers project management, planning, and construction mainly for wind farm projects in the Nordic and Baltic countries. The company generates maximum revenue from the Project personnel segment. Geographically, it derives a majority of its revenue from the Norway.

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