Cherry SE (XTER:C3RY) ROC % : -15.30% (As of Sep. 2024)

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What is Cherry SE 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 %. Cherry SE's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -15.30%.

As of today (2025-03-04), Cherry SE's WACC % is 10.34%. Cherry SE's ROC % is -36.01% (calculated using TTM income statement data). Cherry SE earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cherry SE ROC % Historical Data

The historical data trend for Cherry SE'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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Cherry SE ROC % Chart

Cherry SE Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

-2.31

7.27

-2.33

-33.62

Cherry SE Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-9.92	-102.97	-5.80	-5.24	-15.30

Cherry SE ROC % Calculation

Cherry SE'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 )
=	-75.298 * ( 1 - 5.18% )	/	( (252.693	+	172.092)	/ 2 )
=	-71.3975636	/	212.3925
=	-33.62 %

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	))
=	379.066	-	33.525	-	( 92.848	-	max(0, 47.26	-	176.791	+	92.848	))
=	252.693

	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	))
=	238.554	-	20.379	-	( 46.083	-	max(0, 88.976	-	140.877	+	46.083	))
=	172.092

Cherry SE's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-23.976 * ( 1 - -8.65% )	/	( (172.17	+	168.436)	/ 2 )
=	-26.049924	/	170.303
=	-15.30 %

where

	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	))
=	206.036	-	18.046	-	( 15.82	-	max(0, 37.831	-	108.325	+	15.82	))
=	172.17

	Invested Capital		(Q: Sep. 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	))
=	198.478	-	21.685	-	( 8.357	-	max(0, 38.135	-	100.735	+	8.357	))
=	168.436

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Cherry SE (XTER:C3RY) 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, Cherry SE's WACC % is 10.34%. Cherry SE's ROC % is -36.01% (calculated using TTM income statement data). Cherry SE 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.

Cherry SE ROC % Related Terms

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Cherry SE Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Cherry SE (XTER:C3RY) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

C3RY:Germany C3RY:Germany C3RY:Germany

Address

Cherrystrasse 2, Auerbach, DEU, 91275

Website

https://www.cherry.de

Cherry SE is a manufacturer of high-end mechanical keyboard switches and computer input devices such as keyboards, mice, microphones, and headsets for gaming and e-sports and (hybrid) office workstation applications as well as industrial applications and the healthcare sector. The product offerings of the company include USB-A / USB-C Adapters, Mice, Accessories, and other products.

Executives

Dr. Udo Streller	Board of Directors
Marcel Stolk	Supervisory Board
Oliver Kaltner	Board of Directors
Joachim Coers	Supervisory Board

Cherry SE Headlines

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