Zwipe AS (OSL:ZWIPE) ROC % : -169.49% (As of Jun. 2024)

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What is Zwipe 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 %. Zwipe AS's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -169.49%.

As of today (2025-03-04), Zwipe AS's WACC % is 10.76%. Zwipe AS's ROC % is -272.02% (calculated using TTM income statement data). Zwipe AS earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Zwipe AS ROC % Historical Data

The historical data trend for Zwipe 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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Zwipe AS ROC % Chart

Zwipe AS Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-169.41

-134.30

-540.10

-791.48

-355.07

Zwipe AS Semi-Annual Data
	Dec15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial												-720.74	-860.34	-837.30	-318.06	-169.49

Zwipe AS ROC % Calculation

Zwipe 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 )
=	-99.951 * ( 1 - -1.02% )	/	( (13.488	+	43.386)	/ 2 )
=	-100.9705002	/	28.437
=	-355.07 %

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	))
=	67.643	-	4.891	-	( 49.264	-	max(0, 13.009	-	64.258	+	49.264	))
=	13.488

	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	))
=	95.241	-	10.019	-	( 41.836	-	max(0, 34.148	-	91.346	+	41.836	))
=	43.386

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

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-57.498 * ( 1 - -0.73% )	/	( (43.386	+	24.957)	/ 2 )
=	-57.9177354	/	34.1715
=	-169.49 %

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	))
=	95.241	-	10.019	-	( 41.836	-	max(0, 34.148	-	91.346	+	41.836	))
=	43.386

	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	))
=	53.682	-	3.537	-	( 25.188	-	max(0, 22.964	-	49.949	+	25.188	))
=	24.957

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

Zwipe AS (OSL:ZWIPE) 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, Zwipe AS's WACC % is 10.76%. Zwipe AS's ROC % is -272.02% (calculated using TTM income statement data). Zwipe 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.

Zwipe AS ROC % Related Terms

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Zwipe AS Business Description

Industry

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Comparable Companies

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ZWIPE:Sweden 4ZW:Germany

Address

Henrik Ibsens gate 90, Oslo, NOR, 0255

Website

https://www.zwipe.com

Zwipe AS is a biometric authentication technology company. The company is focused on developing and commercializing secure, fast, and easy to use biometric authentication solutions with opportunities for broad application across key verticals like payment, access control, and government identification. It is focused on the access control market with its product Zwipe Access, which is a card-based fingerprint access control solution.

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