Kabel Deutschland Holding AG (HAM:KD8) ROC % : 12.67% (As of Mar. 2021)

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What is Kabel Deutschland Holding 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 %. Kabel Deutschland Holding AG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2021 was 12.67%.

As of today (2024-05-13), Kabel Deutschland Holding AG's WACC % is 0.00%. Kabel Deutschland Holding AG's ROC % is 0.00% (calculated using TTM income statement data). Kabel Deutschland Holding AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Kabel Deutschland Holding AG ROC % Historical Data

The historical data trend for Kabel Deutschland Holding 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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Kabel Deutschland Holding AG ROC % Chart

Kabel Deutschland Holding AG Annual Data

Trend

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

ROC %

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9.99

14.51

10.53

11.85

12.67

Kabel Deutschland Holding AG Semi-Annual Data
	Mar04	Mar05	Mar06	Mar07	Mar08	Mar09	Mar10	Mar11	Mar12	Mar13	Mar14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20	Mar21
ROC %	Get a 7-Day Free Trial													9.99	14.51	10.53	11.85	12.67

Kabel Deutschland Holding AG ROC % Calculation

Kabel Deutschland Holding AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2021 is calculated as:

	ROC % (A: Mar. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2020 )	+	Invested Capital (A: Mar. 2021 ))	/ count )
=	854.976 * ( 1 - 31.68% )	/	( (4749.067	+	4473.526)	/ 2 )
=	584.1196032	/	4611.2965
=	12.67 %

where

	Invested Capital		(A: Mar. 2020 )
=	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	))
=	4199.38	-	961.379	-	( 1.938	-	max(0, 1773.366	-	262.3	+	1.938	))
=	4749.067

	Invested Capital		(A: Mar. 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	))
=	4153.164	-	1213.055	-	( 1.933	-	max(0, 1763.21	-	229.793	+	1.933	))
=	4473.526

Kabel Deutschland Holding AG's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2021 is calculated as:

	ROC % (Q: Mar. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2020 )	+	Invested Capital (Q: Mar. 2021 ))	/ count )
=	854.976 * ( 1 - 31.68% )	/	( (4749.067	+	4473.526)	/ 2 )
=	584.1196032	/	4611.2965
=	12.67 %

where

	Invested Capital		(Q: Mar. 2020 )
=	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	))
=	4199.38	-	961.379	-	( 1.938	-	max(0, 1773.366	-	262.3	+	1.938	))
=	4749.067

	Invested Capital		(Q: Mar. 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	))
=	4153.164	-	1213.055	-	( 1.933	-	max(0, 1763.21	-	229.793	+	1.933	))
=	4473.526

Note: The Operating Income data used here is one times the annual (Mar. 2021) data.

Kabel Deutschland Holding AG (HAM:KD8) 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, Kabel Deutschland Holding AG's WACC % is 0.00%. Kabel Deutschland Holding AG's ROC % is 0.00% (calculated using TTM income statement data). Kabel Deutschland Holding 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.

Kabel Deutschland Holding AG ROC % Related Terms

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Kabel Deutschland Holding AG (HAM:KD8) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Kabel Deutschland Holding AG (HAM:KD8) » Definitions » ROC %

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Address

Betastrasse 6 - 8, Unterfoehring, DEU, 85774

Website

http://www.kabeldeutschland.com

Kabel Deutschland is a triple play cable network operator and holding company. Its primary revenue segments are TV Business and Internet and Phone Business. The TV Business segment offers subscribers basic cable- and premium-TV products. Revenue is generated through monthly subscription fees. The Internet and Phone business is primarily involved with providing broadband Internet as well as fixed-line and mobile phone services. Like the TV Business segment, revenue is earned through monthly subscription fees. The company's infrastructure comes in the form of hybrid fibre coaxial cables. Kabel Deustchland is majority owned by Vodafone and generates the majority of its revenue in Germany.

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