ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Boewe Systec AG's annualized return on capital (ROC %) for the quarter that ended in Dec. 2008 was -5.00%.
As of today (2024-06-16), Boewe Systec AG's WACC % is 0.00%. Boewe Systec AG's ROC % is 0.00% (calculated using TTM income statement data).
Boewe Systec AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Boewe Systec AG ROC % Historical Data
The historical data trend for Boewe Systec AG'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.
Note:
The Operating Income data used here is one times the annual (Dec. 2008) data.
* 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.
Boewe Systec AG (STU:BSY) 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, Boewe Systec AG's WACC % is 0.00%. Boewe Systec AG's ROC % is 0.00% (calculated using TTM income statement data).
Boewe Systec AG 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.
Boewe Systec AG ROC % Related Terms
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Boewe Systec AG is a solutions provider for printing and mail processing centres. The company manufactures and markets inserting systems. It also offers card mailing systems, letter and flats sorting, intralogistics and reading technologies in the field of document processing. It provides services to classic transactional or direct mail applications, modern mail processing centers, intralogistics or serialization in the pharmaceutical industry.
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