Proximar Seafood AS (OSL:PROXI) ROC % : -6.16% (As of Mar. 2024)

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What is Proximar Seafood AS 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 %. Proximar Seafood AS's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -6.16%.

As of today (2024-06-17), Proximar Seafood AS's WACC % is 3.47%. Proximar Seafood AS's ROC % is -5.23% (calculated using TTM income statement data). Proximar Seafood AS earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Proximar Seafood AS ROC % Historical Data

The historical data trend for Proximar Seafood AS'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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Proximar Seafood AS ROC % Chart

Proximar Seafood AS Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-63.29

-71.14

-4.62

-3.75

-4.86

Proximar Seafood AS Quarterly Data
	Dec18	Dec19	Jun20	Dec20	Jun21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial										-0.71	-7.68	-4.96	-4.41	-6.16

Proximar Seafood AS ROC % Calculation

Proximar Seafood AS's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-51.906 * ( 1 - -2.9% )	/	( (834.842	+	1363.063)	/ 2 )
=	-53.411274	/	1098.9525
=	-4.86 %

where

	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	))
=	860.466	-	0.849	-	( 24.775	-	max(0, 13.132	-	66.963	+	24.775	))
=	834.842

	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	))
=	1387.922	-	18.154	-	( 36.908	-	max(0, 101.504	-	108.209	+	36.908	))
=	1363.063

Proximar Seafood AS's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-81.9 * ( 1 - -1.59% )	/	( (1363.063	+	1337.499)	/ 2 )
=	-83.20221	/	1350.281
=	-6.16 %

where

	Invested Capital		(Q: 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	))
=	1387.922	-	18.154	-	( 36.908	-	max(0, 101.504	-	108.209	+	36.908	))
=	1363.063

	Invested Capital		(Q: Mar. 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	))
=	1493.052	-	15.045	-	( 140.508	-	max(0, 27.97	-	183.178	+	140.508	))
=	1337.499

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Proximar Seafood AS (OSL:PROXI) 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, Proximar Seafood AS's WACC % is 3.47%. Proximar Seafood AS's ROC % is -5.23% (calculated using TTM income statement data). Proximar Seafood AS 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.

Proximar Seafood AS ROC % Related Terms

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Proximar Seafood AS (OSL:PROXI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Proximar Seafood AS (OSL:PROXI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

84Q:Germany

Address

Edvard Griegs vei 3C, Bergen, NOR, 5059

Website

https://www.proximarseafood.com

Proximar Seafood AS is a land-based salmon farming company in the process of constructing a fish farm for Atlantic salmon in Japan. It produces Atlantic salmon which involves free of medication and without impact from traditional challenges such as lice and microplastics and the fish is isolated from the marine surrounding environment.

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