GURUFOCUS.COM » STOCK LIST » Matthias Hohner AG (STU:HOH) » Definitions » ROC %

Matthias Hohner AG (STU:HOH) ROC % : 9.07% (As of Sep. 2013)


View and export this data going back to . Start your Free Trial

What is Matthias Hohner AG 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 %. Matthias Hohner AG's annualized return on capital (ROC %) for the quarter that ended in Sep. 2013 was 9.07%.

As of today (2024-05-28), Matthias Hohner AG's WACC % is 0.00%. Matthias Hohner AG's ROC % is 0.00% (calculated using TTM income statement data). Matthias Hohner AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Matthias Hohner AG ROC % Historical Data

The historical data trend for Matthias Hohner AG'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.

* Premium members only.

Matthias Hohner AG ROC % Chart

Matthias Hohner AG Annual Data
Trend Mar10 Mar11 Mar12 Mar13
ROC %
3.65 6.43 8.67 6.15

Matthias Hohner AG Semi-Annual Data
Mar11 Sep11 Mar12 Sep12 Mar13 Sep13
ROC % Get a 7-Day Free Trial 8.97 7.06 7.83 3.85 9.07

Matthias Hohner AG ROC % Calculation

Matthias Hohner AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2013 is calculated as:

ROC % (A: Mar. 2013 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2012 ) + Invested Capital (A: Mar. 2013 ))/ count )
=3.387 * ( 1 - 36.34% )/( (32.818 + 37.276)/ 2 )
=2.1561642/35.047
=6.15 %

where

Matthias Hohner AG's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2013 is calculated as:

ROC % (Q: Sep. 2013 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2013 ) + Invested Capital (Q: Sep. 2013 ))/ count )
=4.356 * ( 1 - 20.66% )/( (37.276 + 38.9)/ 2 )
=3.4560504/38.088
=9.07 %

where

Note: The Operating Income data used here is two times the semi-annual (Sep. 2013) 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.


Matthias Hohner AG  (STU:HOH) 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, Matthias Hohner AG's WACC % is 0.00%. Matthias Hohner AG's ROC % is 0.00% (calculated using TTM income statement data). Matthias Hohner 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 %, 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.


Matthias Hohner AG ROC % Related Terms

Thank you for viewing the detailed overview of Matthias Hohner AG's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Matthias Hohner AG (STU:HOH) Business Description

Traded in Other Exchanges
N/A
Address
Matthias Hohner AG is engaged in the production, development and distribution of musical instruments. Its range of products includes harmonicas, recorders, accordions, guitars, grand pianos, digital pianos, amplifiers, melodicas and various accessories.

Matthias Hohner AG (STU:HOH) Headlines

No Headlines