Creditshelf AG (FRA:CSQ) ROC % : -18.41% (As of Sep. 2023)

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What is Creditshelf 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 %. Creditshelf AG's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -18.41%.

As of today (2024-06-09), Creditshelf AG's WACC % is 0.95%. Creditshelf AG's ROC % is -53.60% (calculated using TTM income statement data). Creditshelf AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Creditshelf AG ROC % Historical Data

The historical data trend for Creditshelf 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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Creditshelf AG ROC % Chart

Creditshelf AG Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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-160.89

-94.87

-89.13

-42.42

-15.95

Creditshelf 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															-70.19	-96.11	-63.32	-33.03	-18.41

Creditshelf AG ROC % Calculation

Creditshelf 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 )
=	-0.799 * ( 1 - 0% )	/	( (5.16	+	4.858)	/ 2 )
=	-0.799	/	5.009
=	-15.95 %

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	))
=	10.232	-	3.958	-	( 4.484	-	max(0, 4.839	-	5.953	+	4.484	))
=	5.16

	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	))
=	9.619	-	3.499	-	( 4.182	-	max(0, 4.451	-	5.713	+	4.182	))
=	4.858

Creditshelf 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 )
=	-0.844 * ( 1 - 0% )	/	( (4.699	+	4.47)	/ 2 )
=	-0.844	/	4.5845
=	-18.41 %

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	))
=	9.727	-	3.207	-	( 4.538	-	max(0, 4.062	-	5.883	+	4.538	))
=	4.699

	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	))
=	8.03	-	2.157	-	( 3.03	-	max(0, 3.064	-	4.467	+	3.03	))
=	4.47

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

Creditshelf AG (FRA:CSQ) 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, Creditshelf AG's WACC % is 0.95%. Creditshelf AG's ROC % is -53.60% (calculated using TTM income statement data). Creditshelf 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.

Creditshelf AG ROC % Related Terms

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Creditshelf AG (FRA:CSQ) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Creditshelf AG (FRA:CSQ) » Definitions » ROC %

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CSQ:Germany

Address

Mainzer Landstrasse 33a, Frankfurt, DEU, 60329

Website

https://www.creditshelf.com

Creditshelf AG is the platform for digital SME finance in Germany. It arranges flexible financial solutions that are not tied to specific banks for small and medium-sized enterprises via its online platform, www.creditshelf.com. The company has successfully developed an online credit marketplace platform whose processes are supported by the proprietary, data-driven risk analysis software. The creditshelf platform models the entire credit process, from the loan application through credit analysis and risk management down to loan disbursement and loan servicing. The product offering, which is targeted at German SMEs and growth companies, comprises corporate loans. The business generates revenue from Borrower fees, Investor fees and Servicing and advisory fees.

Creditshelf AG (FRA:CSQ) Headlines

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