GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Shelly Group PLC (XTER:SLYG) » Definitions » ROC %

Shelly Group (XTER:SLYG) ROC % : 30.06% (As of Sep. 2024)


View and export this data going back to 2024. Start your Free Trial

What is Shelly Group 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 %. Shelly Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 30.06%.

As of today (2024-12-11), Shelly Group's WACC % is 10.17%. Shelly Group's ROC % is 46.56% (calculated using TTM income statement data). Shelly Group 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.

Shelly Group ROC % Historical Data

The historical data trend for Shelly Group'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.

* Premium members only.

Shelly Group ROC % Chart

Shelly Group Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial 14.61 33.16 39.27 38.04 49.54

Shelly Group 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 50.91 92.71 38.28 35.82 30.06

Shelly Group ROC % Calculation

Shelly Group'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 )
=21.307 * ( 1 - 12.22% )/( (30.722 + 44.782)/ 2 )
=18.7032846/37.752
=49.54 %

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))
=44.893 - 1.957 - ( 12.214 - max(0, 4.029 - 38.982+12.214))
=30.722

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))
=64.551 - 4.209 - ( 15.56 - max(0, 8.301 - 54.838+15.56))
=44.782

Shelly Group'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 )
=18.52 * ( 1 - 9.11% )/( (54.8 + 57.209)/ 2 )
=16.832828/56.0045
=30.06 %

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))
=69.445 - 4.31 - ( 10.335 - max(0, 7.113 - 58.396+10.335))
=54.8

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))
=74.686 - 6.488 - ( 10.989 - max(0, 8.15 - 65.518+10.989))
=57.209

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

* 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.

Shelly Group  (XTER:SLYG) 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, Shelly Group's WACC % is 10.17%. Shelly Group's ROC % is 46.56% (calculated using TTM income statement data). Shelly Group 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.

Shelly Group ROC % Related Terms

Thank you for viewing the detailed overview of Shelly Group's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Shelly Group Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Shelly Group PLC (XTER:SLYG) » Definitions » ROC %
Comparable Companies
Traded in Other Exchanges
SLYG:Bulgaria
Address
103 Cherni Vrah Boulevard, Floor 8, Sofia, BGR, 1407
Website
https://corporate.shelly.com
Shelly Group PLC formerly Allterco AD is engaged in the acquisition, management, evaluation, and sale of participations in Bulgarian & foreign companies; acquisition, management, and sale of bonds; acquisition, evaluation, sale, and patents. It delivers innovation through designing, producing, and distributing high-quality IoT products. It group manages the business with electronic devices as one operating segment. Its products include Smartwatches, Tracker, and Home automation. It derives the majority of its revenue from the sale of smart devices.
Executives
Svetlin Todorov Board of Directors
Dimitar Dimitrov Chief Executive Officer (CEO)