Grupo Greening 2022 (XMAD:GGR) ROC % : 13.00% (As of Jun. 2023)

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What is Grupo Greening 2022 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 %. Grupo Greening 2022's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was 13.00%.

As of today (2024-05-20), Grupo Greening 2022's WACC % is 8.74%. Grupo Greening 2022's ROC % is 11.24% (calculated using TTM income statement data). Grupo Greening 2022 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.

Grupo Greening 2022 ROC % Historical Data

The historical data trend for Grupo Greening 2022'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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Grupo Greening 2022 ROC % Chart

Grupo Greening 2022 Annual Data

Trend

Dec20

Dec21

Dec22

ROC %

4.05

20.67

15.18

Grupo Greening 2022 Semi-Annual Data
	Dec20	Dec21	Jun22	Dec22	Jun23
ROC %	-	-	17.35	14.47	13.00

Grupo Greening 2022 ROC % Calculation

Grupo Greening 2022's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	3.291 * ( 1 - 27.51% )	/	( (7.8	+	23.637)	/ 2 )
=	2.3856459	/	15.7185
=	15.18 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	11.645	-	3.21	-	( 0.635	-	max(0, 7.359	-	9.575	+	0.635	))
=	7.8

	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	))
=	32.948	-	8.505	-	( 0.806	-	max(0, 17.595	-	25.174	+	0.806	))
=	23.637

Grupo Greening 2022's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	6.598 * ( 1 - 28.79% )	/	( (23.637	+	48.639)	/ 2 )
=	4.6984358	/	36.138
=	13.00 %

where

	Invested Capital		(Q: 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	))
=	32.948	-	8.505	-	( 0.806	-	max(0, 17.595	-	25.174	+	0.806	))
=	23.637

	Invested Capital		(Q: Jun. 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	))
=	71.333	-	12.249	-	( 10.445	-	max(0, 27.704	-	56.974	+	10.445	))
=	48.639

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

Grupo Greening 2022 (XMAD:GGR) 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, Grupo Greening 2022's WACC % is 8.74%. Grupo Greening 2022's ROC % is 11.24% (calculated using TTM income statement data). Grupo Greening 2022 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.

Grupo Greening 2022 ROC % Related Terms

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Grupo Greening 2022 (XMAD:GGR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Grupo Greening 2022 SA (XMAD:GGR) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

70I:Germany

Address

C/ Alcayata, 4. Polígono Industrial El Florío, Granada, ESP, 18015

Website

https://www.greening-group.com

Grupo Greening 2022 SA is a diversified business group, whose objectives are innovation and international development in all its business areas: renewable energies, hydraulic projects, engineering, concessions, services and industry.