ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Eckert & Ziegler SE's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 11.23%.
As of today (2025-03-14), Eckert & Ziegler SE's WACC % is 10.86%. Eckert & Ziegler SE's ROIC % is 10.95% (calculated using TTM income statement data).
Eckert & Ziegler SE 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.
Eckert & Ziegler SE ROIC % Historical Data
The historical data trend for Eckert & Ziegler SE'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.
Competitive Comparison of Eckert & Ziegler SE's ROIC %
For the Medical Devices subindustry, Eckert & Ziegler SE'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.
Eckert & Ziegler SE's ROIC % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Eckert & Ziegler SE's ROIC % distribution charts can be found below:
* The bar in red indicates where Eckert & Ziegler SE's ROIC % falls into.
Eckert & Ziegler SE ROIC % Calculation
Eckert & Ziegler SE's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:
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.
Eckert & Ziegler SE (XTER:EUZ) 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, Eckert & Ziegler SE's WACC % is 10.86%. Eckert & Ziegler SE's ROIC % is 10.95% (calculated using TTM income statement data).
Eckert & Ziegler SE 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.
Eckert & Ziegler SE 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.
Eckert & Ziegler SE ROIC % Related Terms
Thank you for viewing the detailed overview of Eckert & Ziegler SE's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Eckert & Ziegler SE is a provider of isotope technology for medical, scientific, and industrial use. It is predominantly engaged in the business of cancer therapy, industrial radiometry, and nuclear medical imaging. The company's segments are Medical, Isotope Products, and Other. The Isotope Products segment which generates key revenue, manufactures and distributes standards and radiation sources for medical and industrial purposes. The Medical segment provides pharmaceutical-quality radioactive ingredients and markets products for the treatment and diagnosis of cancers. The Other segment comprises the items of the holding company. Geographically, the company generates a majority of its revenue from Europe and the rest from North America, Asia/Pacific, and other regions.
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