Dr Bock Industries AG (WBO:DBI) ROC % : -8.20% (As of Dec. 2018)

View and export this data going back to 2016. Start your Free Trial

What is Dr Bock Industries 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 %. Dr Bock Industries AG's annualized return on capital (ROC %) for the quarter that ended in Dec. 2018 was -8.20%.

As of today (2024-05-19), Dr Bock Industries AG's WACC % is 0.00%. Dr Bock Industries AG's ROC % is 0.00% (calculated using TTM income statement data). Dr Bock Industries AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Dr Bock Industries AG ROC % Historical Data

The historical data trend for Dr Bock Industries 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.

* Premium members only.

Dr Bock Industries AG ROC % Chart

Dr Bock Industries AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

ROC %

3.38

8.07

1.81

-5.54

Dr Bock Industries AG Semi-Annual Data
	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18
ROC %	Get a 7-Day Free Trial			9.29	3.25	0.65	-2.44	-8.20

Dr Bock Industries AG ROC % Calculation

Dr Bock Industries AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2018 is calculated as:

	ROC % (A: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2017 )	+	Invested Capital (A: Dec. 2018 ))	/ count )
=	-2.349 * ( 1 - 20.99% )	/	( (31.091	+	35.936)	/ 2 )
=	-1.8559449	/	33.5135
=	-5.54 %

where

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	31.918	-	2.082	-	( 0.969	-	max(0, 10.391	-	9.136	+	0.969	))
=	31.091

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	34.868	-	4.277	-	( 0.217	-	max(0, 15.356	-	10.011	+	0.217	))
=	35.936

Dr Bock Industries AG's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2018 is calculated as:

	ROC % (Q: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2018 )	+	Invested Capital (Q: Dec. 2018 ))	/ count )
=	-3.694 * ( 1 - 21.22% )	/	( (35.068	+	35.936)	/ 2 )
=	-2.9101332	/	35.502
=	-8.20 %

where

	Invested Capital		(Q: Jun. 2018 )
=	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	))
=	34.251	-	2.248	-	( 0.25	-	max(0, 12.041	-	8.976	+	0.25	))
=	35.068

	Invested Capital		(Q: Dec. 2018 )
=	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	))
=	34.868	-	4.277	-	( 0.217	-	max(0, 15.356	-	10.011	+	0.217	))
=	35.936

Note: The Operating Income data used here is two times the semi-annual (Dec. 2018) data.

Dr Bock Industries AG (WBO:DBI) 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, Dr Bock Industries AG's WACC % is 0.00%. Dr Bock Industries AG's ROC % is 0.00% (calculated using TTM income statement data). Dr Bock Industries 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.

Dr Bock Industries AG ROC % Related Terms

Thank you for viewing the detailed overview of Dr Bock Industries AG's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Dr Bock Industries AG (WBO:DBI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Dr Bock Industries AG (WBO:DBI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Welle 23, Auetal-Rolfshagen, DEU, D-31749

Website

https://www.drbockindustries.com

Dr Bock Industries AG is engaged in producing men's trousers. It is engaged in spreading and cutting, sewing and assembling, and finishing and final inspection of garments.