NYSE Euronext, (XPAR:NYX) ROC % : 6.96% (As of Sep. 2013)

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What is NYSE Euronext, 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 %. NYSE Euronext,'s annualized return on capital (ROC %) for the quarter that ended in Sep. 2013 was 6.96%.

As of today (2024-05-21), NYSE Euronext,'s WACC % is 0.00%. NYSE Euronext,'s ROC % is 0.00% (calculated using TTM income statement data). NYSE Euronext, earns returns that do not match up to its cost of capital. It will destroy value as it grows.

NYSE Euronext, ROC % Historical Data

The historical data trend for NYSE Euronext,'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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NYSE Euronext, ROC % Chart

NYSE Euronext, Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

ROC %

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-4.67

2.12

4.82

5.70

3.91

NYSE Euronext, Quarterly Data
	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
ROC %	Get a 7-Day Free Trial															4.29	2.11	5.14	6.35	6.96

NYSE Euronext, ROC % Calculation

NYSE Euronext,'s annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2012 is calculated as:

	ROC % (A: Dec. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2011 )	+	Invested Capital (A: Dec. 2012 ))	/ count )
=	464.058 * ( 1 - 22.34% )	/	( (9203.6	+	9250.68)	/ 2 )
=	360.3874428	/	9227.14
=	3.91 %

where

	Invested Capital		(A: Dec. 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	))
=	9961.32	-	753.92	-	( 328.32	-	max(0, 899.84	-	903.64	+	328.32	))
=	9203.6

	Invested Capital		(A: Dec. 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	))
=	9567.672	-	627.888	-	( 289.56	-	max(0, 1078.992	-	768.096	+	289.56	))
=	9250.68

NYSE Euronext,'s annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2013 is calculated as:

	ROC % (Q: Sep. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2013 )	+	Invested Capital (Q: Sep. 2013 ))	/ count )
=	532.576 * ( 1 - -15.19% )	/	( (8785.978	+	8844.352)	/ 2 )
=	613.4742944	/	8815.165
=	6.96 %

where

	Invested Capital		(Q: Jun. 2013 )
=	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	))
=	9130.868	-	551.066	-	( 244.076	-	max(0, 924.76	-	718.584	+	244.076	))
=	8785.978

	Invested Capital		(Q: Sep. 2013 )
=	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	))
=	9273.704	-	477.972	-	( 326.876	-	max(0, 805.596	-	756.976	+	326.876	))
=	8844.352

Note: The Operating Income data used here is four times the quarterly (Sep. 2013) data.

NYSE Euronext, (XPAR:NYX) 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, NYSE Euronext,'s WACC % is 0.00%. NYSE Euronext,'s ROC % is 0.00% (calculated using TTM income statement data). NYSE Euronext, 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.

NYSE Euronext, ROC % Related Terms

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NYSE Euronext, (XPAR:NYX) Business Description

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GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » NYSE Euronext, Inc. (XPAR:NYX) » Definitions » ROC %

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Address

Website

http://www.nyse.com

NYSE Euronext, Inc., a Delaware corporation, was organized on May 22, 2006 in anticipation of the combination of the businesses of NYSE Group, Inc., a Delaware corporation, and Euronext N.V., a company organized under the laws of the Netherlands. The Company is a global operator of financial markets and provider of trading solutions. The Company offers an array of products and services in cash equities, futures, options, swaps, exchange-traded products, bonds, clearing operations, market data, commercial technology solutions and carbon trading, all designed to meet the evolving needs of investors, issuers, financial institutions and market participants. The Company consists of three business segments: Derivatives; Cash Trading and Listings; and Information Services and Technology Solutions. Derivatives segment is comprised of derivatives trading and clearing businesses and includes its subsidiaries NYSE Liffe, NYSE Liffe Clearing, NYSE Liffe US, NYSE Amex Options, NYSE Arca Options and joint venture NYPC as well as its related derivatives market data business. Cash Trading and Listings segment consists of cash trading and listings businesses and includes its subsidiaries the NYSE, Euronext, NYSE Amex, NYSE Arca, NYSE Alternext, NYSE Arca Europe and SmartPool, as well as NYSE Blue and Interbolsa, and its related cash trading market data business. Information Services and Technology Solutions segment refers to its commercial technology transactions, data and infrastructure businesses. The Company operates a commercial technology business, NYSE Technologies Inc., and also owns NYFIX, Inc., a provider of solutions that aims to optimize trading efficiency. NYSE Technologies provides comprehensive transaction, data and infrastructure services and managed solutions for buy-side, sell-side and exchange communities. NYSE Technologies' integrated solutions power the trading operations of global financial institutions and exchanges, including non-NYSE Euronext markets in addition to all the exchanges in the NYSE Euronext group. NYSE Technologies operates five businesses: Global Market Data, which offers an array of global market information products covering multiple asset classes; Trading Solutions, which creates and implements high performance, end-to-end messaging software and real-time market data distribution and integration products; Exchange Solutions, which provides multi-asset exchange platform services, managed services and expert consultancy; Global Connectivity, which offers a financial transaction network connecting firms and exchanges worldwide; and Transaction Services, which mainly comprises the former NYFIX FIX business, and which incorporates the NYFIX Marketplace and FIX Software businesses. NYSE Liffe US, NYSE Arca and NYSE Amex face considerable competition in derivatives trading. Their main U.S. competitors are the CME Group Inc., Chicago Board Options Exchange, Inc., the International Securities Exchange Holdings, Inc

NYSE Euronext, (XPAR:NYX) Headlines

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