Enapter AG (STU:H2O) ROC % : -17.34% (As of Jun. 2023)

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What is Enapter AG 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 %. Enapter AG's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was -17.34%.

As of today (2024-06-06), Enapter AG's WACC % is 6.69%. Enapter AG's ROC % is -17.76% (calculated using TTM income statement data). Enapter AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Enapter AG ROC % Historical Data

The historical data trend for Enapter 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.

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Enapter AG ROC % Chart

Enapter AG Annual Data

Trend

Dec07

Dec08

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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-47.45

-40.26

-23.46

Enapter AG Semi-Annual Data
	Dec07	Dec08	Jun09	Jun11	Jan17	Jul17	Jan18	Jul18	Jan19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROC %	Get a 7-Day Free Trial												-65.96	-45.00	-28.78	-18.09	-17.34

Enapter AG ROC % Calculation

Enapter AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-14.87 * ( 1 - -0.18% )	/	( (35.954	+	91.026)	/ 2 )
=	-14.896766	/	63.49
=	-23.46 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	62.141	-	6.664	-	( 19.604	-	max(0, 10.397	-	29.92	+	19.604	))
=	35.954

	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	))
=	107.814	-	11.717	-	( 5.071	-	max(0, 16.07	-	27.577	+	5.071	))
=	91.026

Enapter AG's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-17.172 * ( 1 - 0% )	/	( (91.026	+	106.993)	/ 2 )
=	-17.172	/	99.0095
=	-17.34 %

where

	Invested Capital		(Q: 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	))
=	107.814	-	11.717	-	( 5.071	-	max(0, 16.07	-	27.577	+	5.071	))
=	91.026

	Invested Capital		(Q: Jun. 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	))
=	120.614	-	4.169	-	( 9.452	-	max(0, 11.171	-	35.447	+	9.452	))
=	106.993

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

Enapter AG (STU:H2O) 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, Enapter AG's WACC % is 6.69%. Enapter AG's ROC % is -17.76% (calculated using TTM income statement data). Enapter 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.

Enapter AG ROC % Related Terms

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Enapter AG (STU:H2O) Business Description

Industry

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H2O:Germany

Address

Reinhardtstr. 35, Berlin, BB, DEU, 10117

Website

https://www.enapter.com

Enapter AG is engaged in research and development in the field of hydrogen systems with a focus on electrolysis, project management in Renewable Energy Systems and Smart-Grid Technology, software development for Smart Grid, Smart Energy and Industry 4.0 and Internet of Things (IoT), and manufacturing and production, design, planning, trading and resale of electrolysers and similar products and related software and control systems. Specifically, the Enapter Group develops and manufactures patented electrolysers based on Anion Exchange Membrane (AEM) technology. the Group had only one reportable segment which is the design and production of hydrogen generators based on patented anion exchange membrane electrolysis (AEM electrolysis) and pursues.

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