ifa systems AG (XTER:IS8) ROC % : -0.19% (As of Jun. 2022)

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What is ifa systems 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 %. ifa systems AG's annualized return on capital (ROC %) for the quarter that ended in Jun. 2022 was -0.19%.

As of today (2024-09-21), ifa systems AG's WACC % is 0.00%. ifa systems AG's ROC % is 0.00% (calculated using TTM income statement data). ifa systems AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

ifa systems AG ROC % Historical Data

The historical data trend for ifa systems 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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ifa systems AG ROC % Chart

ifa systems AG Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

ROC %

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-9.02

-40.54

13.74

7.65

2.79

ifa systems AG Semi-Annual Data
	Dec11	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Jun22
ROC %	Get a 7-Day Free Trial															-11.48	1.58	4.00	-0.14	-0.19

ifa systems AG ROC % Calculation

ifa systems AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

	ROC % (A: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2019 )	+	Invested Capital (A: Dec. 2020 ))	/ count )
=	0.465 * ( 1 - 7.23% )	/	( (13.998	+	16.923)	/ 2 )
=	0.4313805	/	15.4605
=	2.79 %

where

	Invested Capital		(A: Dec. 2019 )
=	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	))
=	16.444	-	3.364	-	( 3.521	-	max(0, 5.529	-	4.611	+	3.521	))
=	13.998

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	17.508	-	3.023	-	( 1.639	-	max(0, 5.295	-	2.857	+	1.639	))
=	16.923

ifa systems AG's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2022 is calculated as:

	ROC % (Q: Jun. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2021 )	+	Invested Capital (Q: Jun. 2022 ))	/ count )
=	-0.032 * ( 1 - 1.64% )	/	( (16.711	+	15.632)	/ 2 )
=	-0.0314752	/	16.1715
=	-0.19 %

where

	Invested Capital		(Q: Jun. 2021 )
=	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	))
=	16.938	-	2.308	-	( 1.285	-	max(0, 4.745	-	2.664	+	1.285	))
=	16.711

	Invested Capital		(Q: Jun. 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	))
=	16.062	-	1.128	-	( 1.007	-	max(0, 2.998	-	2.3	+	1.007	))
=	15.632

Note: The Operating Income data used here is two times the semi-annual (Jun. 2022) data.

ifa systems AG (XTER:IS8) 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, ifa systems AG's WACC % is 0.00%. ifa systems AG's ROC % is 0.00% (calculated using TTM income statement data). ifa systems 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.

ifa systems AG ROC % Related Terms

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ifa systems AG Business Description

Industry

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Address

Augustinusstrasse 11b, Konigsdorf, Frechen, DEU, 50226

Website

https://www.ifasystems.de

ifa systems AG develops, distributes and installs software solutions and components for ophthalmologists and eye clinics in the fast-growing health IT industry. Its products are divided into the Clinic, Practice, and Language Versions. Some of its product includes EMR (Electronic Medical Records); MDI (Medical Device Interface); Software Connection Platform; CDSS (Clinical Decision Support System); WFM Software (Workflow Management) and others.

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