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Verve Group SE (XTER:M8G) ROIC % : 7.05% (As of Sep. 2024)


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What is Verve Group SE 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 %. Verve Group SE's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 7.05%.

As of today (2024-12-13), Verve Group SE's WACC % is 9.45%. Verve Group SE's ROIC % is -3.58% (calculated using TTM income statement data). Verve Group SE earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Verve Group SE ROIC % Historical Data

The historical data trend for Verve Group 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.

* Premium members only.

Verve Group SE ROIC % Chart

Verve Group SE Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.86 0.70 1.64 -5.14 -1.67

Verve Group SE Quarterly Data
Dec19 Mar20 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 20.22 -34.07 -1.63 7.31 7.05

Competitive Comparison of Verve Group SE's ROIC %

For the Software - Application subindustry, Verve Group 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.


Verve Group SE's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, Verve Group SE's ROIC % distribution charts can be found below:

* The bar in red indicates where Verve Group SE's ROIC % falls into.



Verve Group SE ROIC % Calculation

Verve Group SE'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 )
=-16.922 * ( 1 - 5.55% )/( (957.966 + 956.712)/ 2 )
=-15.982829/957.339
=-1.67 %

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))
=1044.659 - 85.142 - ( 164.481 - max(0, 219.471 - 221.022+164.481))
=957.966

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))
=1007.028 - 97.571 - ( 154.71 - max(0, 240.768 - 193.513+154.71))
=956.712

Verve Group SE'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 )
=97.888 * ( 1 - 22.55% )/( (1003.683 + 1146.69)/ 2 )
=75.814256/1075.1865
=7.05 %

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))
=1059.375 - 72.973 - ( 144.782 - max(0, 236.311 - 219.03+144.782))
=1003.683

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))
=1155.698 - 73.507 - ( 118.985 - max(0, 248.599 - 184.1+118.985))
=1146.69

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.


Verve Group SE  (XTER:M8G) 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, Verve Group SE's WACC % is 9.45%. Verve Group SE's ROIC % is -3.58% (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.


Verve Group SE ROIC % Related Terms

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Verve Group SE Business Description

Traded in Other Exchanges
Address
Stureplan 6, Stockholm, SWE, 114 35
Verve Group SE operates a fast-growing ad-software platform that matches global advertiser demand with publisher ad-supply while improving results through first party data from own games. Verve's main operational presence is in North America and Europe. Through investments in organic growth and innovation, as well as targeted M&A, Verve has built a one-stop shop for programmatic advertising, enabling companies to buy and sell ad space across all digital devices (mobile apps, web, connected TV and digital out of home), with the mission to make advertising better.
Executives
Paul Echt Chief Financial Officer (CFO)
Tobias M. Weitzel Chairman of the Board of Directors
Remco Westermann Chief Executive Officer (CEO)/Managing Director

Verve Group SE Headlines

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