Gi Group Poland (WAR:GIG) ROC % : 12.02% (As of Sep. 2024)

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What is Gi Group Poland 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 %. Gi Group Poland's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 12.02%.

As of today (2024-12-12), Gi Group Poland's WACC % is 4.98%. Gi Group Poland's ROC % is 17.56% (calculated using TTM income statement data). Gi Group Poland generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Gi Group Poland ROC % Historical Data

The historical data trend for Gi Group Poland'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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Gi Group Poland ROC % Chart

Gi Group Poland Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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1.79

-0.93

1.23

-14.61

-7.50

Gi Group Poland Quarterly Data
	Dec18	Sep19	Dec19	Mar20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-1.97	13.19	-13.12	18.48	12.02

Gi Group Poland ROC % Calculation

Gi Group Poland'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 )
=	-7.833 * ( 1 - -15.2% )	/	( (124.07	+	116.629)	/ 2 )
=	-9.023616	/	120.3495
=	-7.50 %

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	))
=	214.634	-	73.819	-	( 38.078	-	max(0, 128.509	-	145.254	+	38.078	))
=	124.07

	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	))
=	192.71	-	80.078	-	( 21.702	-	max(0, 128.805	-	124.808	+	21.702	))
=	116.629

Gi Group Poland'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 )
=	10.736 * ( 1 - -26.45% )	/	( (119.839	+	106.073)	/ 2 )
=	13.575672	/	112.956
=	12.02 %

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	))
=	188.469	-	79.791	-	( 6.141	-	max(0, 132.523	-	121.362	+	6.141	))
=	119.839

	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	))
=	237.259	-	75.999	-	( 56.193	-	max(0, 114.417	-	169.604	+	56.193	))
=	106.073

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

Gi Group Poland (WAR:GIG) 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, Gi Group Poland's WACC % is 4.98%. Gi Group Poland's ROC % is 17.56% (calculated using TTM income statement data). Gi Group Poland generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Gi Group Poland ROC % Related Terms

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Gi Group Poland Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Gi Group Poland SA (WAR:GIG) » Definitions » ROC %

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Address

Sky Tower, ul. Gwiazdzista 66, Wroclaw, POL, 53-413

Website

https://www.workservice.pl

Gi Group Poland SA formerly Work Service SA is a Poland-based employment agency. It specializes in employment services and modern human resource solutions, providing services in the area of recruitment, the provision of skilled workers to clients, consulting and human resource management. The company has four main product lines, Temporary work, Outsourcing, Personnel Consulting and Strategic HR Consulting. The company generates a majority of its revenue from temporary work segment covering services relating to the recruitment of temporary workers directed to work for the contractor, supervising their work, reporting results, as well as the calculation of the components of remuneration and personnel record keeping and payment of wages.