ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. La SIA SpA's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 4.05%.
As of today (2025-03-02), La SIA SpA's WACC % is 8.89%. La SIA SpA's ROIC % is 2.03% (calculated using TTM income statement data).
La SIA SpA earns returns that do not match up to its cost of capital. It will destroy value as it grows.
La SIA SpA ROIC % Historical Data
The historical data trend for La SIA SpA'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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La SIA SpA ROIC % Chart
La SIA SpA Annual Data
Trend
Dec21
Dec22
Dec23
ROIC %
40.48
38.22
30.95
La SIA SpA Semi-Annual Data
Dec21
Dec22
Jun23
Dec23
Jun24
ROIC %
-
-
-
-
4.05
Competitive Comparison of La SIA SpA's ROIC %
For the Software - Infrastructure subindustry, La SIA SpA'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.
La SIA SpA's ROIC % Distribution in the Software Industry
For the Software industry and Technology sector, La SIA SpA's ROIC % distribution charts can be found below:
* The bar in red indicates where La SIA SpA's ROIC % falls into.
La SIA SpA ROIC % Calculation
La SIA SpA'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 two times the semi-annual (Jun. 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.
La SIA SpA (MIL:LASIA) 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, La SIA SpA's WACC % is 8.89%. La SIA SpA's ROIC % is 2.03% (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.
La SIA SpA ROIC % Related Terms
Thank you for viewing the detailed overview of La SIA SpA's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
La SIA SpA is an Italian payment institution part of the Nexi group. It is the Principal Member of the main national and international payment circuits which are Bancomat, VISA, Mastercard, Union Pay and JCB. The company offers the citizens the possibility of paying postal bills through distribution channels which are both physical and virtual which is managed by banks or by the large organised distribution network. It also offers the development, marketing (sale and/or rental) and management/maintenance of IT products and services relating to payment instruments and, more generally, to connection to electronic circuits.
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