Zenitel NV (XBRU:ZENT) ROC % : 35.35% (As of Dec. 2020)

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What is Zenitel NV 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 %. Zenitel NV's annualized return on capital (ROC %) for the quarter that ended in Dec. 2020 was 35.35%.

As of today (2024-05-26), Zenitel NV's WACC % is 0.00%. Zenitel NV's ROC % is 0.00% (calculated using TTM income statement data). Zenitel NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Zenitel NV ROC % Historical Data

The historical data trend for Zenitel NV'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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Zenitel NV ROC % Chart

Zenitel NV Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

ROC %

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12.36

12.99

12.32

12.89

26.35

Zenitel NV Semi-Annual Data
	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20
ROC %	Get a 7-Day Free Trial															10.65	14.25	11.95	23.57	35.35

Zenitel NV ROC % Calculation

Zenitel NV's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

	ROC % (A: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2019 )	+	Invested Capital (A: Dec. 2020 ))	/ count )
=	8.63 * ( 1 - 14.56% )	/	( (27.999	+	27.963)	/ 2 )
=	7.373472	/	27.981
=	26.35 %

where

	Invested Capital		(A: Dec. 2019 )
=	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	))
=	59.114	-	9.784	-	( 21.331	-	max(0, 24.184	-	49.64	+	21.331	))
=	27.999

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	61.199	-	7.072	-	( 26.164	-	max(0, 21.16	-	52.905	+	26.164	))
=	27.963

Zenitel NV's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2020 is calculated as:

	ROC % (Q: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2020 )	+	Invested Capital (Q: Dec. 2020 ))	/ count )
=	9.39 * ( 1 - 3.32% )	/	( (23.396	+	27.963)	/ 2 )
=	9.078252	/	25.6795
=	35.35 %

where

	Invested Capital		(Q: Jun. 2020 )
=	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	))
=	58.932	-	15.566	-	( 19.97	-	max(0, 23.513	-	51.062	+	19.97	))
=	23.396

	Invested Capital		(Q: Dec. 2020 )
=	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	))
=	61.199	-	7.072	-	( 26.164	-	max(0, 21.16	-	52.905	+	26.164	))
=	27.963

Note: The Operating Income data used here is two times the semi-annual (Dec. 2020) data.

Zenitel NV (XBRU:ZENT) 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, Zenitel NV's WACC % is 0.00%. Zenitel NV's ROC % is 0.00% (calculated using TTM income statement data). Zenitel NV 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.

Zenitel NV ROC % Related Terms

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Zenitel NV (XBRU:ZENT) Business Description

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Address

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Website

https://www.zenitel.com

Zenitel NV operates in the onshore and offshore secure communications market. It offers integrated security communications solutions under its VingtorStentofon brand. Zenitel products include intercom, public address, 2-way radio systems, sound reception system, and IT/IP solutions. The company serves a diverse range of markets, including building security and public safety, transportation, industrial, oil and gas, and maritime. Its geographical segments are Belgium, Norway, Singapore, Finland, France, the United States, and other foreign countries. The majority of its revenue is derived from Norway.

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