ASMALLWORLD AG (XSWX:ASWN) ROC % : 9.86% (As of Jun. 2024)

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What is ASMALLWORLD AG 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 %. ASMALLWORLD AG's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 9.86%.

As of today (2024-12-15), ASMALLWORLD AG's WACC % is 10.88%. ASMALLWORLD AG's ROC % is 12.52% (calculated using TTM income statement data). ASMALLWORLD AG 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.

ASMALLWORLD AG ROC % Historical Data

The historical data trend for ASMALLWORLD AG'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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ASMALLWORLD AG ROC % Chart

ASMALLWORLD AG Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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10.49

8.06

20.08

18.54

14.69

ASMALLWORLD AG Semi-Annual Data
	Dec15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial												21.65	14.58	13.51	14.87	9.86

ASMALLWORLD AG ROC % Calculation

ASMALLWORLD AG'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 )
=	1.696 * ( 1 - 9.61% )	/	( (10.188	+	10.677)	/ 2 )
=	1.5330144	/	10.4325
=	14.69 %

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	))
=	12.302	-	1.549	-	( 4.014	-	max(0, 5.917	-	6.482	+	4.014	))
=	10.188

	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	))
=	11.795	-	1.189	-	( 3.029	-	max(0, 4.764	-	4.693	+	3.029	))
=	10.677

ASMALLWORLD AG's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	1.23 * ( 1 - 19.05% )	/	( (10.677	+	9.526)	/ 2 )
=	0.995685	/	10.1015
=	9.86 %

where

	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	))
=	11.795	-	1.189	-	( 3.029	-	max(0, 4.764	-	4.693	+	3.029	))
=	10.677

	Invested Capital		(Q: Jun. 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	))
=	12.466	-	2.308	-	( 1.968	-	max(0, 5.573	-	6.205	+	1.968	))
=	9.526

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

ASMALLWORLD AG (XSWX:ASWN) 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, ASMALLWORLD AG's WACC % is 10.88%. ASMALLWORLD AG's ROC % is 12.52% (calculated using TTM income statement data). ASMALLWORLD AG 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.

ASMALLWORLD AG ROC % Related Terms

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ASMALLWORLD AG Business Description

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Address

Seidengasse 20, Zurich, CHE, 8001

Website

https://www.asmallworldag.com

ASMALLWORLD AG is a travel and lifestyle community company. It operates through the segments of Subscription segment and Service segment, of which key revenue is derived from the Subscription segment. Subscription businesses allow members to use one of their services for a predefined period of time, for which members will pay a membership fee, and the Service segment is characterized by traditional cost-plus economics, where margins related to scale are more stable.

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