Villeroy & Boch AG (XTER:VIB3) ROC % : 1.72% (As of Sep. 2024)

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What is Villeroy & Boch 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 %. Villeroy & Boch AG's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 1.72%.

As of today (2025-03-25), Villeroy & Boch AG's WACC % is 9.15%. Villeroy & Boch AG's ROC % is 1.73% (calculated using TTM income statement data). Villeroy & Boch AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Villeroy & Boch AG ROC % Historical Data

The historical data trend for Villeroy & Boch 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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Villeroy & Boch AG ROC % Chart

Villeroy & Boch AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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1.87

5.23

12.53

13.34

7.20

Villeroy & Boch AG 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															8.04	1.28	3.89	0.10	1.72

Villeroy & Boch AG ROC % Calculation

Villeroy & Boch 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 )
=	58.9 * ( 1 - 28.57% )	/	( (588.3	+	579.9)	/ 2 )
=	42.07227	/	584.1
=	7.20 %

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	))
=	980.2	-	129.4	-	( 262.5	-	max(0, 330.5	-	658.1	+	262.5	))
=	588.3

	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	))
=	1096.2	-	120.8	-	( 395.5	-	max(0, 326.1	-	779.6	+	395.5	))
=	579.9

Villeroy & Boch AG'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 )
=	35.6 * ( 1 - 30.77% )	/	( (1400.4	+	1457.9)	/ 2 )
=	24.64588	/	1429.15
=	1.72 %

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	))
=	1746.6	-	240.8	-	( 105.4	-	max(0, 614.2	-	720.5	+	105.4	))
=	1400.4

	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	))
=	1755.6	-	227.3	-	( 70.4	-	max(0, 625	-	724.1	+	70.4	))
=	1457.9

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

Villeroy & Boch AG (XTER:VIB3) 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, Villeroy & Boch AG's WACC % is 9.15%. Villeroy & Boch AG's ROC % is 1.73% (calculated using TTM income statement data). Villeroy & Boch 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.

Villeroy & Boch AG ROC % Related Terms

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Villeroy & Boch AG Business Description

Industry

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0OPA:UK

Address

Saaruferstrasse 1-3, Mettlach, DEU, 66693

Website

https://www.villeroy-boch.com

Villeroy & Boch AG is a manufacturer of home furnishing products manufacturer in Germany. Its activities are broadly classified into two segments, The Bathroom and Wellness Division manufactures ceramic sanitary ware, ceramic kitchen sinks, bathroom furniture bathtubs and shower tubs, whirlpools, bath, and kitchen fittings and accessories. Among other things, shower toilets, installation systems, outdoor whirlpools, and accessories complete the product range, and The Dining & Lifestyle Division covers the full range of tableware, glass, and cutlery for the stylish table, as well as home accessories, gifts, and clever-to-go solutions made of porcelain. The company derives a majority of its revenue from the Bathroom and Wellness Division.

Executives

Gabriele Schupp	Board of Directors
Dr. Markus Warncke	Board of Directors
Jan Peter Tewes	Executive Vice President Sales Bath & Wellness
Esther Jehle	Board of Directors
Graf Richard Waldburg	Supervisory Board
Frank Göring	Board of Directors
Louis De Schorlemer	Supervisory Board

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