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Rana Gruber ASA (OSTO:RANAO) ROIC % : 18.50% (As of Sep. 2024)


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What is Rana Gruber ASA 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 %. Rana Gruber ASA's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 18.50%.

As of today (2024-12-14), Rana Gruber ASA's WACC % is 8.79%. Rana Gruber ASA's ROIC % is 36.16% (calculated using TTM income statement data). Rana Gruber ASA 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.


Rana Gruber ASA ROIC % Historical Data

The historical data trend for Rana Gruber ASA'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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Rana Gruber ASA ROIC % Chart

Rana Gruber ASA Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial 21.00 55.27 68.69 37.09 55.61

Rana Gruber ASA Quarterly Data
Sep19 Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 65.31 88.15 2.82 40.13 18.50

Competitive Comparison of Rana Gruber ASA's ROIC %

For the Steel subindustry, Rana Gruber ASA'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.


Rana Gruber ASA's ROIC % Distribution in the Steel Industry

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

* The bar in red indicates where Rana Gruber ASA's ROIC % falls into.



Rana Gruber ASA ROIC % Calculation

Rana Gruber ASA's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=764.277 * ( 1 - 22.01% )/( (961.405 + 1182.169)/ 2 )
=596.0596323/1071.787
=55.61 %

where

Invested Capital(A: Dec. 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))
=1445.046 - 285.022 - ( 198.619 - max(0, 361.483 - 792.606+198.619))
=961.405

Invested Capital(A: Dec. 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))
=1801.807 - 431.75 - ( 276.939 - max(0, 627.972 - 815.86+276.939))
=1182.169

Rana Gruber ASA's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=313.528 * ( 1 - 22% )/( (1287.833 + 1355.664)/ 2 )
=244.55184/1321.7485
=18.50 %

where

Invested Capital(Q: Jun. 2024 )
=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))
=1620.618 - 243.015 - ( 89.77 - max(0, 370.523 - 508.811+89.77))
=1287.833

Invested Capital(Q: Sep. 2024 )
=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))
=1650.136 - 237.179 - ( 57.293 - max(0, 378.372 - 477.998+57.293))
=1355.664

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.


Rana Gruber ASA  (OSTO:RANAo) 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, Rana Gruber ASA's WACC % is 8.79%. Rana Gruber ASA's ROIC % is 36.16% (calculated using TTM income statement data). Rana Gruber ASA 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. Rana Gruber ASA 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.


Rana Gruber ASA ROIC % Related Terms

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Rana Gruber ASA Business Description

Traded in Other Exchanges
Address
Mjolanveien 29, Mo i Rana, NOR, 8622
Rana Gruber ASA is a sustainable iron ore producer in Norway. It is engaged in the excavating, processing and sale of iron oxide in the form of hematite, magnetite and iron oxide pigments. Hematite is used for iron and steel production in smelting plants in Europe and magnetite is used in industrial water purification processes. The iron ore production takes place at the group's iron ore deposits at Ortfjell as open-pit production and underground operation. It produces and sells iron ore concentrate, and mainly serves steel producers and participants in the chemical industry.The majority of revenue from contracts with customers arise from the sale of hematite products.

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