Avemio AG (XTER:3D6) ROC % : -11.11% (As of Jun. 2024)

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What is Avemio 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 %. Avemio AG's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -11.11%.

As of today (2024-12-12), Avemio AG's WACC % is 7.81%. Avemio AG's ROC % is -16.84% (calculated using TTM income statement data). Avemio AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Avemio AG ROC % Historical Data

The historical data trend for Avemio 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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Avemio AG ROC % Chart

Avemio AG Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

45.71

-194.29

-7.42

Avemio AG Semi-Annual Data
	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial						-78.05	-2,000.00	3.18	-22.30	-11.11

Avemio AG ROC % Calculation

Avemio 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 )
=	-2.605 * ( 1 - -9.49% )	/	( (0	+	38.423)	/ 1 )
=	-2.8522145	/	38.423
=	-7.42 %

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	))
=	0.166	-	0.005	-	( 0.166	-	max(0, 0.005	-	0.166	+	0.166	))
=	0

	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	))
=	50.582	-	6.732	-	( 5.427	-	max(0, 6.886	-	28.3	+	5.427	))
=	38.423

Avemio 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 )
=	-4.116 * ( 1 - -1.53% )	/	( (38.423	+	36.809)	/ 2 )
=	-4.1789748	/	37.616
=	-11.11 %

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	))
=	50.582	-	6.732	-	( 5.427	-	max(0, 6.886	-	28.3	+	5.427	))
=	38.423

	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	))
=	53.379	-	13.805	-	( 2.765	-	max(0, 13.869	-	30.128	+	2.765	))
=	36.809

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

Avemio AG (XTER:3D6) 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, Avemio AG's WACC % is 7.81%. Avemio AG's ROC % is -16.84% (calculated using TTM income statement data). Avemio AG 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.

Avemio AG ROC % Related Terms

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Avemio AG Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

3D6:Germany

Address

Konigsallee 60f, Dusseldorf, DEU, 40212

Website

https://www.palgon.de

Avemio AG Formerly Palgon AG provides management consulting services. It offers marketing, distribution, and other services in the field of information technology, including the Internet and data processing and related fields. Further, the group is also involved in acquiring, selling, renting, and managing real estate.

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