Anchor Capital Investments (FRA:ACP) ROIC % : -52.29% (As of Dec. 2016)

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What is Anchor Capital Investments ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Anchor Capital Investments's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2016 was -52.29%.

As of today (2024-05-25), Anchor Capital Investments's WACC % is 0.00%. Anchor Capital Investments's ROIC % is 0.00% (calculated using TTM income statement data). Anchor Capital Investments earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Anchor Capital Investments ROIC % Historical Data

The historical data trend for Anchor Capital Investments'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.

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Anchor Capital Investments ROIC % Chart

Anchor Capital Investments Annual Data

Trend

Dec15

Dec16

ROIC %

22.71

41.30

Anchor Capital Investments Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16
ROIC %	-	-32.90	131.06	-52.29

Competitive Comparison of Anchor Capital Investments's ROIC %

For the Capital Markets subindustry, Anchor Capital Investments'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.

Anchor Capital Investments's ROIC % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Anchor Capital Investments's ROIC % distribution charts can be found below:

* The bar in red indicates where Anchor Capital Investments's ROIC % falls into.

Anchor Capital Investments ROIC % Calculation

Anchor Capital Investments's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2016 is calculated as:

	ROIC % (A: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2015 )	+	Invested Capital (A: Dec. 2016 ))	/ count )
=	1.007 * ( 1 - 0% )	/	( (1.836	+	3.041)	/ 2 )
=	1.007	/	2.4385
=	41.30 %

where

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	1.998	-	0	-	( 0.162	-	max(0, 0.002	-	0.425	+	0.162	))
=	1.836

	Invested Capital		(A: Dec. 2016 )
=	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	))
=	3.046	-	0	-	( 0.005	-	max(0, 0.003	-	0.273	+	0.005	))
=	3.041

Anchor Capital Investments's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2016 is calculated as:

	ROIC % (Q: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2016 )	+	Invested Capital (Q: Dec. 2016 ))	/ count )
=	-1.71 * ( 1 - 0% )	/	( (3.499	+	3.041)	/ 2 )
=	-1.71	/	3.27
=	-52.29 %

where

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	3.672	-	0	-	( 0.173	-	max(0, 0.001	-	3.671	+	0.173	))
=	3.499

	Invested Capital		(Q: Dec. 2016 )
=	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	))
=	3.046	-	0	-	( 0.005	-	max(0, 0.003	-	0.273	+	0.005	))
=	3.041

Note: The Operating Income data used here is two times the semi-annual (Dec. 2016) data.

Anchor Capital Investments (FRA:ACP) 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, Anchor Capital Investments's WACC % is 0.00%. Anchor Capital Investments's ROIC % is 0.00% (calculated using TTM income statement data).

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.

Anchor Capital Investments ROIC % Related Terms

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Anchor Capital Investments (FRA:ACP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Anchor Capital Investments Ltd (FRA:ACP) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

Website

http://www.anchorcapitalinvestments.com

Anchor Capital Investments Ltd is an investment consultancy company. It provides financial consulting, financial analysis, listing on the Stock Exchanges, business plan development and website development services.