New Amsterdam Invest NV (XAMS:NAI) ROIC % : 2.97% (As of Dec. 2023)

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What is New Amsterdam Invest NV 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 %. New Amsterdam Invest NV's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 2.97%.

As of today (2024-06-24), New Amsterdam Invest NV's WACC % is 6.45%. New Amsterdam Invest NV's ROIC % is 1.17% (calculated using TTM income statement data). New Amsterdam Invest NV earns returns that do not match up to its cost of capital. It will destroy value as it grows.

New Amsterdam Invest NV ROIC % Historical Data

The historical data trend for New Amsterdam Invest NV'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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New Amsterdam Invest NV ROIC % Chart

New Amsterdam Invest NV Annual Data

Trend

Dec21

Dec22

Dec23

ROIC %

-4.21

1.30

New Amsterdam Invest NV Semi-Annual Data
	Jun22	Dec22	Jun23	Dec23
ROIC %	-4.33	-4.10	-1.94	2.97

Competitive Comparison of New Amsterdam Invest NV's ROIC %

For the Shell Companies subindustry, New Amsterdam Invest NV'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.

New Amsterdam Invest NV's ROIC % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, New Amsterdam Invest NV's ROIC % distribution charts can be found below:

* The bar in red indicates where New Amsterdam Invest NV's ROIC % falls into.

New Amsterdam Invest NV ROIC % Calculation

New Amsterdam Invest NV'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 )
=	0.96 * ( 1 - 11.2% )	/	( (48.644	+	82.588)	/ 2 )
=	0.85248	/	65.616
=	1.30 %

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	))
=	48.784	-	0.124	-	( 0.016	-	max(0, 0.264	-	48.772	+	0.016	))
=	48.644

	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	))
=	84.45	-	0.241	-	( 5.49	-	max(0, 4.671	-	6.292	+	5.49	))
=	82.588

New Amsterdam Invest NV's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	3.24 * ( 1 - 21.83% )	/	( (88.06	+	82.588)	/ 2 )
=	2.532708	/	85.324
=	2.97 %

where

	Invested Capital		(Q: Jun. 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	))
=	76.545	-	0.473	-	( 5.787	-	max(0, 18.881	-	6.893	+	5.787	))
=	88.06

	Invested Capital		(Q: 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	))
=	84.45	-	0.241	-	( 5.49	-	max(0, 4.671	-	6.292	+	5.49	))
=	82.588

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

New Amsterdam Invest NV (XAMS:NAI) 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, New Amsterdam Invest NV's WACC % is 6.45%. New Amsterdam Invest NV's ROIC % is 1.17% (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.

New Amsterdam Invest NV ROIC % Related Terms

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New Amsterdam Invest NV (XAMS:NAI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » New Amsterdam Invest NV (XAMS:NAI) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Herengracht 280, Amsterdam, NLD, 1016 BX

Website

https://www.newamsterdaminvest.nl

New Amsterdam Invest NV is a special purpose acquisition company. The main purpose of the company is to acquire a significant stake in a business or company in the commercial real estate sector with principal operations in Europe, preferably in the Netherlands, Germany, the United Kingdom, or the United States of America.

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