Mutares SE KGaA (XTER:MUX) ROC % : -12.24% (As of Jun. 2024)

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What is Mutares SE KGaA 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 %. Mutares SE KGaA's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -12.24%.

As of today (2025-01-19), Mutares SE KGaA's WACC % is 7.07%. Mutares SE KGaA's ROC % is -19.45% (calculated using TTM income statement data). Mutares SE KGaA earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mutares SE KGaA ROC % Historical Data

The historical data trend for Mutares SE KGaA'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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Mutares SE KGaA ROC % Chart

Mutares SE KGaA Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-14.88

-26.04

-18.55

-5.47

-14.27

Mutares SE KGaA Quarterly Data
	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROC %	Get a 7-Day Free Trial															-3.79	47.76	-85.02	-18.38	-12.24

Mutares SE KGaA ROC % Calculation

Mutares SE KGaA'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 )
=	-397.8 * ( 1 - -0.99% )	/	( (2280.2	+	3349.7)	/ 2 )
=	-401.73822	/	2814.95
=	-14.27 %

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	))
=	3029.6	-	596.6	-	( 407.3	-	max(0, 1499.6	-	1652.4	+	407.3	))
=	2280.2

	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	))
=	4348.7	-	698.9	-	( 702.3	-	max(0, 2004.1	-	2304.2	+	702.3	))
=	3349.7

Mutares SE KGaA'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: Mar. 2024 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-413.6 * ( 1 - -1.26% )	/	( (3288	+	3554.2)	/ 2 )
=	-418.81136	/	3421.1
=	-12.24 %

where

	Invested Capital		(Q: Mar. 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	))
=	4247.3	-	643.3	-	( 527	-	max(0, 1877.5	-	2193.5	+	527	))
=	3288

	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	))
=	4356	-	688	-	( 561	-	max(0, 2058	-	2171.8	+	561	))
=	3554.2

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

Mutares SE KGaA (XTER:MUX) 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, Mutares SE KGaA's WACC % is 7.07%. Mutares SE KGaA's ROC % is -19.45% (calculated using TTM income statement data). Mutares SE KGaA 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.

Mutares SE KGaA ROC % Related Terms

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Mutares SE KGaA Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Mutares SE & Co KGaA (XTER:MUX) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

MUX:Germany MUX:Germany MUX:Germany

Address

Arnulfstrasse 19, Munich, DEU, 80335

Website

https://www.mutares.de

Mutares SE & Co KGaA is a holding company. Its primary business is to acquire small and medium-sized companies in special situations. The company's operating segment includes the Automotive & Mobility segment includes the acquired companies that are engaged in the supplying of rubber mouldings, components for commercial vehicles, and others; the Engineering and Technology segment includes acquired companies that are engaged in the supplying of coating for oil and gas pipelines, components for increasing efficiency, provider of steel structures, roof and facade systems, and others; Goods and services segment includes acquired companies that are engaged in the manufacturing of packaging solutions, iron wire, paper household products, and logistics services.

Executives

Johannes Laumann	Board of Directors
Mark Friedrich	Board of Directors
Herr Volker Rofalski	Supervisory Board
Dr. Lennart Schley	Board of Directors
Dr. Axel Müller	Supervisory Board
Robin Laik	Board of Directors
Julia Und Mark Friedrich	Board of Directors
Dr. Kristian Schleede	Supervisory Board
Prof. Dr. Micha Bloching	Supervisory Board