Pet Service Holding NV (XPAR:MLPET) ROC % : -49.13% (As of Dec. 2023)

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What is Pet Service Holding 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 %. Pet Service Holding NV's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -49.13%.

As of today (2024-06-19), Pet Service Holding NV's WACC % is 8.62%. Pet Service Holding NV's ROC % is -49.13% (calculated using TTM income statement data). Pet Service Holding NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Pet Service Holding NV ROC % Historical Data

The historical data trend for Pet Service Holding 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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Pet Service Holding NV ROC % Chart

Pet Service Holding NV Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

-55.56

-31.98

-52.17

-51.17

-49.13

Pet Service Holding NV Semi-Annual Data
	Dec19	Dec20	Dec21	Dec22	Dec23
ROC %	-55.56	-31.98	-52.17	-51.17	-49.13

Pet Service Holding NV ROC % Calculation

Pet Service Holding NV's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-0.876 * ( 1 - 0.57% )	/	( (1.559	+	1.987)	/ 2 )
=	-0.8710068	/	1.773
=	-49.13 %

where

	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	))
=	2.245	-	-0.009	-	( 0.695	-	max(0, 0.136	-	1.253	+	0.695	))
=	1.559

	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	))
=	2.387	-	0.263	-	( 0.137	-	max(0, 0.473	-	1.351	+	0.137	))
=	1.987

Pet Service Holding NV's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-0.876 * ( 1 - 0.57% )	/	( (1.559	+	1.987)	/ 2 )
=	-0.8710068	/	1.773
=	-49.13 %

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	))
=	2.245	-	-0.009	-	( 0.695	-	max(0, 0.136	-	1.253	+	0.695	))
=	1.559

	Invested Capital		(Q: 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	))
=	2.387	-	0.263	-	( 0.137	-	max(0, 0.473	-	1.351	+	0.137	))
=	1.987

Note: The Operating Income data used here is one times the annual (Dec. 2023) data.

Pet Service Holding NV (XPAR:MLPET) 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, Pet Service Holding NV's WACC % is 8.62%. Pet Service Holding NV's ROC % is -49.13% (calculated using TTM income statement data). Pet Service Holding 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.

Pet Service Holding NV ROC % Related Terms

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Pet Service Holding NV (XPAR:MLPET) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Pet Service Holding NV (XPAR:MLPET) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Industrieweg 16, Wormerveer, NLD, 1521

Website

https://www.petserviceholding.com

Pet Service Holding NV is a European provider of products and services for pets and pet owners. The company specializes in the online sale of medicines, food products, and accessories for pets. The Group operates the following online shops: Dierenapotheek.nl and Drpetcare and sells OTC Medicines for pets. The company also offers PetApp which is a smartphone application that provides users with access to an online pet supply store, storage solutions for data relating to pets, and the option to receive news and information about pet events. The Group is also actively developing a tracker for pets (the PetTracker) and intends to integrate the tracking option into the PetApp.

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