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Rautaruukki Oyj (OHEL:RTRKS) ROIC % : -1.06% (As of Sep. 2014)


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What is Rautaruukki Oyj 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 %. Rautaruukki Oyj's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2014 was -1.06%.

As of today (2024-10-31), Rautaruukki Oyj's WACC % is 1.61%. Rautaruukki Oyj's ROIC % is 0.69% (calculated using TTM income statement data). Rautaruukki Oyj earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Rautaruukki Oyj ROIC % Historical Data

The historical data trend for Rautaruukki Oyj'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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Rautaruukki Oyj ROIC % Chart

Rautaruukki Oyj Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.29 -0.57 0.91 -4.01 3.91

Rautaruukki Oyj Quarterly Data
Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.15 1.32 -0.81 3.13 -1.06

Competitive Comparison of Rautaruukki Oyj's ROIC %

For the Steel subindustry, Rautaruukki Oyj'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.


Rautaruukki Oyj's ROIC % Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Rautaruukki Oyj's ROIC % distribution charts can be found below:

* The bar in red indicates where Rautaruukki Oyj's ROIC % falls into.



Rautaruukki Oyj ROIC % Calculation

Rautaruukki Oyj's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2013 is calculated as:

ROIC % (A: Dec. 2013 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2012 ) + Invested Capital (A: Dec. 2013 ))/ count )
=34 * ( 1 - -133.33% )/( (2110 + 1949)/ 2 )
=79.3322/2029.5
=3.91 %

where

Rautaruukki Oyj's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2014 is calculated as:

ROIC % (Q: Sep. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2014 ) + Invested Capital (Q: Sep. 2014 ))/ count )
=-12 * ( 1 - -57.14% )/( (1782 + 1766)/ 2 )
=-18.8568/1774
=-1.06 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2014) 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.


Rautaruukki Oyj  (OHEL:RTRKS) 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, Rautaruukki Oyj's WACC % is 1.61%. Rautaruukki Oyj's ROIC % is 0.69% (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.


Rautaruukki Oyj ROIC % Related Terms

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Rautaruukki Oyj Business Description

Traded in Other Exchanges
N/A
Address
Rautaruukki Oyj supplies metal-based components, systems and integrated systems to construction and the engineering industry. The company's operations are structured into three divisions: construction, engineering, and steel business. Its construction division supplies steel construction solutions for commercial and industrial construction, as well as for infrastructure foundation and transport infrastructure projects. The divisions' product portfolio includes building frames, wall and roofing products, integrated systems for single and multi-story construction, bridges, traffic noise barriers and highway guard rails, piles, retaining wall structures and foundations for harbor construction. Its customers include developers, designs and builders of commercial, industrial and office premises, logistics and sports complexes and infrastructure services as well as roofing suppliers. Its engineering division supplies systems and components to the engineering industry, such as cabins, booms, masts and frames for goods and container handling, the construction industry and mining and forestry, telescopic booms, frames and parts; windmill components and oil sumps. Main markets serve international European companies, specifically the lifting, handling, and transportation equipment industry, the energy industry, the marine and offshore industry and the paper and wood industry. The Metals division supplies steel products associated with prefabrication, logistics and storage services. The division's product portfolio consists of hot and cold-rolled steels, metal and color-coated steels, tubes and profiles and stainless steel and aluminum sold as trading products. Its customers include the transportation equipment, construction, engineering and electronics industries in Europe and Russia.

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