Nordisk Bergteknik AB (OSTO:NORB B) ROC % : 3.68% (As of Mar. 2024)

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What is Nordisk Bergteknik 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 %. Nordisk Bergteknik AB's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 3.68%.

As of today (2024-06-20), Nordisk Bergteknik AB's WACC % is 5.11%. Nordisk Bergteknik AB's ROC % is 1.33% (calculated using TTM income statement data). Nordisk Bergteknik AB earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nordisk Bergteknik AB ROC % Historical Data

The historical data trend for Nordisk Bergteknik 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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Nordisk Bergteknik AB ROC % Chart

Nordisk Bergteknik AB Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-1.95

1.69

4.47

8.24

2.73

Nordisk Bergteknik AB Quarterly Data
	Dec18	Dec19	Jun20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial												3.56	6.18	0.04	1.57	3.68

Nordisk Bergteknik AB ROC % Calculation

Nordisk Bergteknik AB'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 )
=	113.3 * ( 1 - 29.12% )	/	( (2810.6	+	3078.5)	/ 2 )
=	80.30704	/	2944.55
=	2.73 %

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	))
=	3378.1	-	312.6	-	( 254.9	-	max(0, 737.9	-	1205.4	+	254.9	))
=	2810.6

	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	))
=	3547.6	-	360.3	-	( 108.8	-	max(0, 894.1	-	1153.4	+	108.8	))
=	3078.5

Nordisk Bergteknik AB'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 )
=	90.8 * ( 1 - -26.96% )	/	( (3078.5	+	3183)	/ 2 )
=	115.27968	/	3130.75
=	3.68 %

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	))
=	3547.6	-	360.3	-	( 108.8	-	max(0, 894.1	-	1153.4	+	108.8	))
=	3078.5

	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	))
=	3531.8	-	265.5	-	( 83.3	-	max(0, 917.3	-	1114.6	+	83.3	))
=	3183

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

Nordisk Bergteknik AB (OSTO:NORB B) 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, Nordisk Bergteknik AB's WACC % is 5.11%. Nordisk Bergteknik AB's ROC % is 1.33% (calculated using TTM income statement data). Nordisk Bergteknik 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.

Nordisk Bergteknik AB ROC % Related Terms

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Nordisk Bergteknik AB (OSTO:NORB B) Business Description

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9LY:Germany

Address

Östra Hamngatan 52, Gothenburg, SWE, 411 08

Website

https://www.nordiskbergteknik.se

Nordisk Bergteknik AB's business concept is to offer contracting services in infrastructure to the construction mining and construction industries within selected niches in the Nordic countries. It operates in the two business areas of Rock Handling and Foundation Solutions, which in turn are reported in the three financial segments Foundation Sweden, Rock Sweden, and Rock Norway. It generates maximum revenue from the Rock Sweden segment. Its Majority of the revenue comes from Rock Sweden. Geographic areas are Sweden, Norway, Finland, and Other Countries where the majority of revenue comes from Sweden.

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