D.E. Master Blenders 1753 N.V. (XAMS:DE) ROC % : 3.05% (As of Jun. 2012)

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

What is D.E. Master Blenders 1753 N.V. 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 %. D.E. Master Blenders 1753 N.V.'s annualized return on capital (ROC %) for the quarter that ended in Jun. 2012 was 3.05%.

As of today (2024-05-16), D.E. Master Blenders 1753 N.V.'s WACC % is 0.00%. D.E. Master Blenders 1753 N.V.'s ROC % is 0.00% (calculated using TTM income statement data). D.E. Master Blenders 1753 N.V. earns returns that do not match up to its cost of capital. It will destroy value as it grows.

D.E. Master Blenders 1753 N.V. ROC % Historical Data

The historical data trend for D.E. Master Blenders 1753 N.V.'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.

D.E. Master Blenders 1753 N.V. ROC % Chart

D.E. Master Blenders 1753 N.V. Annual Data

Trend

Jun11

Jun12

ROC %

9.20

3.05

D.E. Master Blenders 1753 N.V. Semi-Annual Data
	Jun11	Jun12
ROC %	9.20	3.05

D.E. Master Blenders 1753 N.V. ROC % Calculation

D.E. Master Blenders 1753 N.V.'s annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2012 is calculated as:

	ROC % (A: Jun. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2011 )	+	Invested Capital (A: Jun. 2012 ))	/ count )
=	109.711 * ( 1 - 49.07% )	/	( (2488.281	+	1175.244)	/ 2 )
=	55.8758123	/	1831.7625
=	3.05 %

where

	Invested Capital		(A: Jun. 2011 )
=	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	))
=	4588.093	-	750.394	-	( 1349.418	-	max(0, 1145.139	-	3345.724	+	1349.418	))
=	2488.281

	Invested Capital		(A: Jun. 2012 )
=	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	))
=	2163.988	-	925.158	-	( 242.611	-	max(0, 1035.115	-	1098.701	+	242.611	))
=	1175.244

D.E. Master Blenders 1753 N.V.'s annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2012 is calculated as:

	ROC % (Q: Jun. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2011 )	+	Invested Capital (Q: Jun. 2012 ))	/ count )
=	109.711 * ( 1 - 49.07% )	/	( (2488.281	+	1175.244)	/ 2 )
=	55.8758123	/	1831.7625
=	3.05 %

where

	Invested Capital		(Q: Jun. 2011 )
=	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	))
=	4588.093	-	750.394	-	( 1349.418	-	max(0, 1145.139	-	3345.724	+	1349.418	))
=	2488.281

	Invested Capital		(Q: Jun. 2012 )
=	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	))
=	2163.988	-	925.158	-	( 242.611	-	max(0, 1035.115	-	1098.701	+	242.611	))
=	1175.244

Note: The Operating Income data used here is one times the annual (Jun. 2012) data.

D.E. Master Blenders 1753 N.V. (XAMS:DE) 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, D.E. Master Blenders 1753 N.V.'s WACC % is 0.00%. D.E. Master Blenders 1753 N.V.'s ROC % is 0.00% (calculated using TTM income statement data). D.E. Master Blenders 1753 N.V. 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.

D.E. Master Blenders 1753 N.V. ROC % Related Terms

Thank you for viewing the detailed overview of D.E. Master Blenders 1753 N.V.'s ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

D.E. Master Blenders 1753 N.V. (XAMS:DE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » D.E. Master Blenders 1753 N.V. (XAMS:DE) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.demasterblenders1753.com

D E Master Blenders 1753 NV was incorporated on February 27, 2012 as a private company with limited liability. On April 4, 2012, it changed its name to D.E MASTER BLENDERS 1753 B.V. and moved its corporate seat to Joure (SkasterlÃ¢n), the Netherlands. The Company is a pure-play coffee and tea company that offers high-quality, coffee and tea products that are known in retail and out of home markets across Europe, Brazil, Australia and Thailand. It has a portfolio of coffee and tea brands that address the needs of both its retail and out of home customers in its markets. The Company's segments are Retail-Western Europe, Retail-Rest of World and Out of Home. In Retail-Western Europe and Retail-Rest of World segments, its principal products are multi-serve coffee, single-serve coffee pads and capsules, instant coffee and tea. It sells these products predominantly to supermarkets, hypermarkets and through international buying groups. In its Out of Home segment, it offers hot beverage products but focus on its liquid roast products and related coffee machines. Its products and the related machines in the Out of Home segment are sold either directly to businesses, hotels, hospitals and restaurants or to foodservice distributors for distribution to the customer. Douwe Egberts is the Company's established brand in the multi-serve category and coffee brand in the Netherlands and Belgium and also has solid market positions in the United Kingdom and Hungary. In addition to Douwe Egberts, its multi-serve coffee is sold under the following brands: L'OR and Maison du CafÃ© in France, Marcilla in Spain,Merrild in Denmark, Harris in Australia, Kanis & Gunnink in the Netherlands, Jacqmotte in Belgium, Prima in Poland, and PilÃ£o, Caboclo, Damasco and Moka in Brazil. Its single-serve coffee is sold under the brand name Senseo which is generally co-branded, such as Douwe Egberts Senseo and L'OR Senseo, in the Netherlands, Belgium, France, Germany, and Spain and selected other countries. In April 2010, it launched the L'OR EspressO capsules brand in France, and L'OR EspressO has subsequently been successfully launched in the Netherlands and Belgium. In May 2011, it successfully launched its capsules brand in Spain as L'aRÃ´me EspressO. The Company's instant coffee is sold under the Moccona brand in Australia and Thailand, under the Douwe Egberts brand in the United Kingdom and under local brands in certain of its markets. Its tea is sold under the brand names Pickwick in the Netherlands, Belgium, the Czech Republic, Hungary and Denmark and Hornimans in Spain. The Out of Home segment operates under the Cafitesse umbrella brand, which is principally co-branded Douwe Egberts Cafitesse, for its liquid roast coffee products and machines and under its Piazza D'Oro brand for premium espresso products and machines. The Company competes with other large international and national coffee and tea companies as well as smaller regional and specialty coffee and te