Reisswolf Bulgaria AD (XBUL:RSW) ROC % : 2.03% (As of Sep. 2024)

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What is Reisswolf Bulgaria AD 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 %. Reisswolf Bulgaria AD's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 2.03%.

As of today (2025-03-28), Reisswolf Bulgaria AD's WACC % is 7.70%. Reisswolf Bulgaria AD's ROC % is 2.03% (calculated using TTM income statement data). Reisswolf Bulgaria AD earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Reisswolf Bulgaria AD ROC % Historical Data

The historical data trend for Reisswolf Bulgaria AD'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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Reisswolf Bulgaria AD ROC % Chart

Reisswolf Bulgaria AD Annual Data

Trend

Dec23

Dec24

ROC %

4.54

Reisswolf Bulgaria AD Semi-Annual Data
	Sep23	Sep24
ROC %	-	2.03

Reisswolf Bulgaria AD ROC % Calculation

Reisswolf Bulgaria AD's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	1.272 * ( 1 - 0% )	/	( (0	+	28.042)	/ 1 )
=	1.272	/	28.042
=	4.54 %

where

	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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(A: Dec. 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	))
=	26.918	-	0.103	-	( 0.284	-	max(0, 3.087	-	1.86	+	0.284	))
=	28.042

Reisswolf Bulgaria AD'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: Sep. 2023 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	0.365 * ( 1 - 0% )	/	( (0	+	17.98)	/ 1 )
=	0.365	/	17.98
=	2.03 %

where

	Invested Capital		(Q: Sep. 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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	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	))
=	18.14	-	0.211	-	( 0.212	-	max(0, 0.892	-	0.841	+	0.212	))
=	17.98

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

Reisswolf Bulgaria AD (XBUL:RSW) 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, Reisswolf Bulgaria AD's WACC % is 7.70%. Reisswolf Bulgaria AD's ROC % is 2.03% (calculated using TTM income statement data). Reisswolf Bulgaria AD 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.

Reisswolf Bulgaria AD ROC % Related Terms

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Reisswolf Bulgaria AD Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

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Address

10 Europa Boulevard, Logistics Park Bozhurishte, Bozhurishte, BGR, PK 2227

Website

https://www.reisswolf.bg

Reisswolf Bulgaria AD is a closed cycle of services for complete information protection. Its digital services include Digital Management, Scanning and image processing, DMS solutions, and Backup software.