Periphas Capital Partnering (Periphas Capital Partnering) ROIC % : -0.19% (As of Sep. 2022)

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What is Periphas Capital Partnering 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 %. Periphas Capital Partnering's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2022 was -0.19%.

As of today (2024-06-24), Periphas Capital Partnering's WACC % is 10.52%. Periphas Capital Partnering's ROIC % is -0.22% (calculated using TTM income statement data). Periphas Capital Partnering earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Periphas Capital Partnering ROIC % Historical Data

The historical data trend for Periphas Capital Partnering'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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Periphas Capital Partnering ROIC % Chart

Periphas Capital Partnering Annual Data

Trend

Dec20

Dec21

ROIC %

-0.26

Periphas Capital Partnering Quarterly Data
	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
ROIC %	Get a 7-Day Free Trial				-0.24	-0.24	-0.26	-0.21	-0.19

Competitive Comparison of Periphas Capital Partnering's ROIC %

For the Shell Companies subindustry, Periphas Capital Partnering'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.

Periphas Capital Partnering's ROIC % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Periphas Capital Partnering's ROIC % distribution charts can be found below:

* The bar in red indicates where Periphas Capital Partnering's ROIC % falls into.

Periphas Capital Partnering ROIC % Calculation

Periphas Capital Partnering's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROIC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-1.096 * ( 1 - 0% )	/	( (414.138	+	414.092)	/ 2 )
=	-1.096	/	414.115
=	-0.26 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	415.75	-	0.275	-	( 1.337	-	max(0, 0.275	-	1.749	+	1.337	))
=	414.138

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	414.761	-	0.291	-	( 0.471	-	max(0, 0.291	-	0.669	+	0.471	))
=	414.092

Periphas Capital Partnering's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2022 is calculated as:

	ROIC % (Q: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Sep. 2022 ))	/ count )
=	-0.924 * ( 1 - 14.51% )	/	( (414.448	+	415.958)	/ 2 )
=	-0.7899276	/	415.203
=	-0.19 %

where

	Invested Capital		(Q: Jun. 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	))
=	414.767	-	0.31	-	( 0.183	-	max(0, 0.31	-	0.319	+	0.183	))
=	414.448

	Invested Capital		(Q: Sep. 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	))
=	416.094	-	0.458	-	( 0.274	-	max(0, 0.658	-	0.336	+	0.274	))
=	415.958

Note: The Operating Income data used here is four times the quarterly (Sep. 2022) data.

Periphas Capital Partnering (OTCPK:PCPCW) 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, Periphas Capital Partnering's WACC % is 10.52%. Periphas Capital Partnering's ROIC % is -0.22% (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.

Periphas Capital Partnering ROIC % Related Terms

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