NIOX Group (NIOX Group) ROC % : 25.46% (As of Dec. 2023)

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What is NIOX Group ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. NIOX Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 25.46%.

As of today (2024-06-07), NIOX Group's WACC % is 3.19%. NIOX Group's ROC % is 14.82% (calculated using TTM income statement data). NIOX Group 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.

NIOX Group ROC % Historical Data

The historical data trend for NIOX Group's ROC % 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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NIOX Group ROC % Chart

NIOX Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-13.53

-15.89

4.63

3.02

14.84

NIOX Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															106.97	1.51	10.06	8.35	25.46

NIOX Group ROC % Calculation

NIOX Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	5.823 * ( 1 - -131.7% )	/	( (94.154	+	87.722)	/ 2 )
=	13.491891	/	90.938
=	14.84 %

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	))
=	119.976	-	2.192	-	( 23.63	-	max(0, 11.206	-	38.246	+	23.63	))
=	94.154

	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	))
=	115.823	-	2.911	-	( 25.19	-	max(0, 9.114	-	42.405	+	25.19	))
=	87.722

NIOX Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	4.05 * ( 1 - -449.97% )	/	( (87.247	+	87.722)	/ 2 )
=	22.273785	/	87.4845
=	25.46 %

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	))
=	120.96	-	3.662	-	( 30.051	-	max(0, 8.965	-	44.066	+	30.051	))
=	87.247

	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	))
=	115.823	-	2.911	-	( 25.19	-	max(0, 9.114	-	42.405	+	25.19	))
=	87.722

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

NIOX Group (OTCPK:CSSPF) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, NIOX Group's WACC % is 3.19%. NIOX Group's ROC % is 14.82% (calculated using TTM income statement data). NIOX Group 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.

Be Aware

Like ROE % and ROA %, ROC % 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.

NIOX Group ROC % Related Terms

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NIOX Group (NIOX Group) Business Description

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NIOX:UK 82C:Germany

Address

Edmund Halley Road, Hayakawa Building, The Oxford Science Park, Oxford, GBR, OX4 4GB

Website

https://investors.niox.com

NIOX Group PLC is a medical device company that develops a range of therapies for asthma, chronic obstructive pulmonary disease, and allergy. The company has a single operating segment: NIOX. The NIOX segment relates to the portfolio of products used to improve asthma diagnosis and management by measuring fractional exhaled nitric oxide (FeNO). Geographically, it derives a majority of its revenue from the Asia Pacific and also has a presence in the European Union, the United States, the United Kingdom, and the Rest of the world.