Vita 34 AG (XTER:V3V) ROC % : -0.19% (As of Sep. 2023)

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What is Vita 34 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 %. Vita 34 AG's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -0.19%.

As of today (2024-05-23), Vita 34 AG's WACC % is 8.96%. Vita 34 AG's ROC % is -11.97% (calculated using TTM income statement data). Vita 34 AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Vita 34 AG ROC % Historical Data

The historical data trend for Vita 34 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.

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Vita 34 AG ROC % Chart

Vita 34 AG Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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2.16

1.42

2.95

-2.89

-14.56

Vita 34 AG Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROC %	Get a 7-Day Free Trial															-1.73	-40.18	-3.94	-2.19	-0.19

Vita 34 AG ROC % Calculation

Vita 34 AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-25.994 * ( 1 - 3.21% )	/	( (175.993	+	169.667)	/ 2 )
=	-25.1595926	/	172.83
=	-14.56 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	177.946	-	9.649	-	( 35.374	-	max(0, 63.375	-	55.679	+	35.374	))
=	175.993

	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	))
=	151.508	-	9.304	-	( 18.233	-	max(0, 68.527	-	41.064	+	18.233	))
=	169.667

Vita 34 AG's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-0.356 * ( 1 - 12.99% )	/	( (175.732	+	157.18)	/ 2 )
=	-0.3097556	/	166.456
=	-0.19 %

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	))
=	153.611	-	8.798	-	( 15.753	-	max(0, 71.673	-	40.754	+	15.753	))
=	175.732

	Invested Capital		(Q: Sep. 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	))
=	149.051	-	8.112	-	( 10.415	-	max(0, 50.563	-	34.322	+	10.415	))
=	157.18

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

Vita 34 AG (XTER:V3V) 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, Vita 34 AG's WACC % is 8.96%. Vita 34 AG's ROC % is -11.97% (calculated using TTM income statement data). Vita 34 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.

Vita 34 AG ROC % Related Terms

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Vita 34 AG (XTER:V3V) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Vita 34 AG (XTER:V3V) » Definitions » ROC %

Comparable Companies

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V3V:Germany V3V:Germany V3V:Germany

Address

Deutscher Platz 5a, Leipzig, DEU, D-04103

Website

https://www.vita34.de

Vita 34 AG is an umbilical cord blood bank. It supplies cryo-preservation and provides for the logistics to collect the blood, the preparation and the storage of stem cells from umbilical cord blood and tissue. The Group has two strategic areas that constitute the Group's reportable segments. Both segments are active in the field of stem cell banking, but differ in their organizational and operational structure with separate financial information. The products and services of the two segments correspond to the service portfolios of the two subgroups PBKM and Vita 34. It operates in Germany, Spain, and other international countries, of which maximum revenue is derived from the business operations in Germany.

Executives

Jakub Julian Baran	Member of the Management Board
Dr. Alexander Granderath	Supervisory Board

Vita 34 AG (XTER:V3V) Headlines

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