Pilkington Deutschland AG (HAM:FDD) ROIC % : -3.97% (As of Mar. 2023)

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What is Pilkington Deutschland AG 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 %. Pilkington Deutschland AG's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2023 was -3.97%.

As of today (2024-05-22), Pilkington Deutschland AG's WACC % is 5.08%. Pilkington Deutschland AG's ROIC % is -3.97% (calculated using TTM income statement data). Pilkington Deutschland AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Pilkington Deutschland AG ROIC % Historical Data

The historical data trend for Pilkington Deutschland AG'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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Pilkington Deutschland AG ROIC % Chart

Pilkington Deutschland AG Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

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6.93

-0.53

1.04

0.46

-3.97

Pilkington Deutschland AG Semi-Annual Data
	Mar06	Mar07	Mar08	Mar09	Mar10	Mar11	Mar12	Mar13	Mar14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20	Mar21	Mar22	Mar23
ROIC %	Get a 7-Day Free Trial													6.93	-0.53	1.04	0.46	-3.97

Competitive Comparison of Pilkington Deutschland AG's ROIC %

For the Building Materials subindustry, Pilkington Deutschland AG'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.

Pilkington Deutschland AG's ROIC % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Pilkington Deutschland AG's ROIC % distribution charts can be found below:

* The bar in red indicates where Pilkington Deutschland AG's ROIC % falls into.

Pilkington Deutschland AG ROIC % Calculation

Pilkington Deutschland AG's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROIC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	-16.762 * ( 1 - -7.16% )	/	( (430.023	+	474.133)	/ 2 )
=	-17.9621592	/	452.078
=	-3.97 %

where

	Invested Capital		(A: Mar. 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	))
=	537.002	-	106.856	-	( 0.123	-	max(0, 113.071	-	371.238	+	0.123	))
=	430.023

	Invested Capital		(A: Mar. 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	))
=	595.097	-	120.837	-	( 0.127	-	max(0, 162.789	-	433.547	+	0.127	))
=	474.133

Pilkington Deutschland AG's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2023 is calculated as:

	ROIC % (Q: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2022 )	+	Invested Capital (Q: Mar. 2023 ))	/ count )
=	-16.762 * ( 1 - -7.16% )	/	( (430.023	+	474.133)	/ 2 )
=	-17.9621592	/	452.078
=	-3.97 %

where

	Invested Capital		(Q: Mar. 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	))
=	537.002	-	106.856	-	( 0.123	-	max(0, 113.071	-	371.238	+	0.123	))
=	430.023

	Invested Capital		(Q: Mar. 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	))
=	595.097	-	120.837	-	( 0.127	-	max(0, 162.789	-	433.547	+	0.127	))
=	474.133

Note: The Operating Income data used here is one times the annual (Mar. 2023) data.

Pilkington Deutschland AG (HAM:FDD) 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, Pilkington Deutschland AG's WACC % is 5.08%. Pilkington Deutschland AG's ROIC % is -3.97% (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.

Pilkington Deutschland AG ROIC % Related Terms

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Pilkington Deutschland AG (HAM:FDD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Pilkington Deutschland AG (HAM:FDD) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Haydnstrasse 19, Gelsenkirchen, DEU, 45884

Website

http://www.pilkington.de

Pilkington Deutschland AG manufactures and markets flat and safety glass for the building and automotive markets. It manufactures glass and glass products for Architectural application such as new construction, renovation, and solar applications, Automotive application namely equipment and automotive glass parts and Technical Glass which covers a wide range of refined glasses for displays, optoelectronics and fiberglass products.