Cadeler AS (STU:CA2) ROC % : 8.26% (As of Sep. 2024)

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What is Cadeler 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 %. Cadeler AS's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 8.26%.

As of today (2024-12-15), Cadeler AS's WACC % is 3.95%. Cadeler AS's ROC % is 1.51% (calculated using TTM income statement data). Cadeler AS earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cadeler AS ROC % Historical Data

The historical data trend for Cadeler 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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Cadeler AS ROC % Chart

Cadeler AS Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-12.12

-19.15

3.14

7.58

2.51

Cadeler AS Quarterly Data
	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial											0.39	-2.83	-6.79	5.28	8.26

Cadeler AS ROC % Calculation

Cadeler 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 )
=	22.15 * ( 1 - 0% )	/	( (642.102	+	1124.703)	/ 2 )
=	22.15	/	883.4025
=	2.51 %

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	))
=	670.03	-	8.916	-	( 19.012	-	max(0, 11.798	-	59.506	+	19.012	))
=	642.102

	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	))
=	1252.56	-	34.022	-	( 96.608	-	max(0, 53.615	-	147.45	+	96.608	))
=	1124.703

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

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	132.816 * ( 1 - 1.75% )	/	( (1453.637	+	1705.554)	/ 2 )
=	130.49172	/	1579.5955
=	8.26 %

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	))
=	1589.528	-	42.841	-	( 93.05	-	max(0, 76.747	-	175.807	+	93.05	))
=	1453.637

	Invested Capital		(Q: Sep. 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	))
=	1827.571	-	38.264	-	( 91.854	-	max(0, 101.961	-	185.714	+	91.854	))
=	1705.554

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

Cadeler AS (STU:CA2) 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, Cadeler AS's WACC % is 3.95%. Cadeler AS's ROC % is 1.51% (calculated using TTM income statement data). Cadeler 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.

Cadeler AS ROC % Related Terms

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Cadeler AS Business Description

Industry

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Address

Kalvebod Brygge 43, Copenhagen, DNK, DK-1560

Website

https://www.cadeler.com

Cadeler AS is an offshore wind farm vessel contractor. It is engaged in offshore wind farm construction, maintenance, and decommissioning, and provides marine and engineering operations to the wind industry with a focus on safety and the environment. The company operates four offshore jack-up wind farm installation vessels. In addition to wind farm installation, these vessels can perform maintenance, construction, decommissioning, and other tasks within the offshore industry.

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