ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. DWS Group GmbH KGaA's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 7.85%.
As of today (2024-12-13), DWS Group GmbH KGaA's WACC % is 10.30%. DWS Group GmbH KGaA's ROIC % is 12.73% (calculated using TTM income statement data).
DWS Group GmbH KGaA 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.
DWS Group GmbH KGaA ROIC % Historical Data
The historical data trend for DWS Group GmbH KGaA's ROIC % 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.
Competitive Comparison of DWS Group GmbH KGaA's ROIC %
For the Asset Management subindustry, DWS Group GmbH KGaA's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
DWS Group GmbH KGaA's ROIC % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, DWS Group GmbH KGaA's ROIC % distribution charts can be found below:
* The bar in red indicates where DWS Group GmbH KGaA's ROIC % falls into.
DWS Group GmbH KGaA ROIC % Calculation
DWS Group GmbH KGaA's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:
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.
DWS Group GmbH KGaA (CHIX:DWSd) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, DWS Group GmbH KGaA's WACC % is 10.30%. DWS Group GmbH KGaA's ROIC % is 12.73% (calculated using TTM income statement data).
DWS Group GmbH KGaA 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.
DWS Group GmbH 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 %, ROIC % 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.
DWS Group GmbH KGaA ROIC % Related Terms
Thank you for viewing the detailed overview of DWS Group GmbH KGaA's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Until 2018, DWS was fully owned by Deutsche Bank, which retains a 79% interest in DWS. DWS' home German market remains important—contributing roughly 40% of assets under management—the EMEA region in total accounts for 70% of AUM, and the Americas contributes nearly all of the balance, with a small Asian presence. Assets from institutional clients make up 55% of overall AUM.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CHIX:DWSD has been successfully added to your 