SWL Sustainable Wealth Lab AG (STU:JZ1) ROIC % : 3.37% (As of Dec. 2014)

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What is SWL Sustainable Wealth Lab 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 %. SWL Sustainable Wealth Lab AG's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2014 was 3.37%.

As of today (2024-06-20), SWL Sustainable Wealth Lab AG's WACC % is 0.00%. SWL Sustainable Wealth Lab AG's ROIC % is 4.70% (calculated using TTM income statement data). SWL Sustainable Wealth Lab AG 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.

SWL Sustainable Wealth Lab AG ROIC % Historical Data

The historical data trend for SWL Sustainable Wealth Lab 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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SWL Sustainable Wealth Lab AG ROIC % Chart

SWL Sustainable Wealth Lab AG Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

ROIC %

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0.93

-185.23

-43.75

-44.79

3.37

SWL Sustainable Wealth Lab AG Semi-Annual Data
	Dec06	Dec07	Dec08	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14
ROIC %	Get a 7-Day Free Trial				0.93	-185.23	-43.75	-44.79	3.37

Competitive Comparison of SWL Sustainable Wealth Lab AG's ROIC %

For the Capital Markets subindustry, SWL Sustainable Wealth Lab 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.

SWL Sustainable Wealth Lab AG's ROIC % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, SWL Sustainable Wealth Lab AG's ROIC % distribution charts can be found below:

* The bar in red indicates where SWL Sustainable Wealth Lab AG's ROIC % falls into.

SWL Sustainable Wealth Lab AG ROIC % Calculation

SWL Sustainable Wealth Lab AG's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2014 is calculated as:

	ROIC % (A: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2013 )	+	Invested Capital (A: Dec. 2014 ))	/ count )
=	0.029 * ( 1 - 0% )	/	( (0.834	+	0.887)	/ 2 )
=	0.029	/	0.8605
=	3.37 %

where

	Invested Capital		(A: Dec. 2013 )
=	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	))
=	1.623	-	0.004	-	( 0.866	-	max(0, 0.162	-	0.947	+	0.866	))
=	0.834

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	1.645	-	0.002	-	( 0.78	-	max(0, 0.157	-	0.913	+	0.78	))
=	0.887

SWL Sustainable Wealth Lab AG's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2014 is calculated as:

	ROIC % (Q: Dec. 2014 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2013 )	+	Invested Capital (Q: Dec. 2014 ))	/ count )
=	0.029 * ( 1 - 0% )	/	( (0.834	+	0.887)	/ 2 )
=	0.029	/	0.8605
=	3.37 %

where

	Invested Capital		(Q: Dec. 2013 )
=	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	))
=	1.623	-	0.004	-	( 0.866	-	max(0, 0.162	-	0.947	+	0.866	))
=	0.834

	Invested Capital		(Q: Dec. 2014 )
=	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	))
=	1.645	-	0.002	-	( 0.78	-	max(0, 0.157	-	0.913	+	0.78	))
=	0.887

Note: The Operating Income data used here is one times the annual (Dec. 2014) data.

SWL Sustainable Wealth Lab AG (STU:JZ1) 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, SWL Sustainable Wealth Lab AG's WACC % is 0.00%. SWL Sustainable Wealth Lab AG's ROIC % is 4.70% (calculated using TTM income statement data). SWL Sustainable Wealth Lab AG 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. SWL Sustainable Wealth Lab AG 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.

SWL Sustainable Wealth Lab AG ROIC % Related Terms

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SWL Sustainable Wealth Lab AG (STU:JZ1) Business Description

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Address

Website

http://www.swlgruppe.org

SWL Sustainable Wealth Lab AG is a Germany-based company, providing capital market information. The Company offers in particular electronical publications in the field of finance such as certificates and capital market advisory services.

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