Landis+Gyr Group AG (XSWX:LAND) ROC % : 7.13% (As of Mar. 2024)

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What is Landis+Gyr Group 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 %. Landis+Gyr Group AG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 7.13%.

As of today (2024-06-10), Landis+Gyr Group AG's WACC % is 7.27%. Landis+Gyr Group AG's ROC % is 6.04% (calculated using TTM income statement data). Landis+Gyr Group AG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Landis+Gyr Group AG ROC % Historical Data

The historical data trend for Landis+Gyr Group 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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Landis+Gyr Group AG ROC % Chart

Landis+Gyr Group AG Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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5.09

1.48

4.84

-0.97

6.00

Landis+Gyr Group AG Semi-Annual Data
	Mar15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
ROC %	Get a 7-Day Free Trial													5.85	-1.62	2.83	4.92	7.13

Landis+Gyr Group AG ROC % Calculation

Landis+Gyr Group AG's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	128.091 * ( 1 - 13.8% )	/	( (1849.975	+	1829.794)	/ 2 )
=	110.414442	/	1839.8845
=	6.00 %

where

	Invested Capital		(A: Mar. 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	))
=	2243.617	-	285.016	-	( 108.626	-	max(0, 606.758	-	759.009	+	108.626	))
=	1849.975

	Invested Capital		(A: Mar. 2024 )
=	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	))
=	2172.087	-	228.697	-	( 113.596	-	max(0, 377.037	-	721.171	+	113.596	))
=	1829.794

Landis+Gyr Group AG's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	142.124 * ( 1 - 8.09% )	/	( (1832.408	+	1829.794)	/ 2 )
=	130.6261684	/	1831.101
=	7.13 %

where

	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	))
=	2156.728	-	228.758	-	( 95.562	-	max(0, 608.87	-	743.673	+	95.562	))
=	1832.408

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	2172.087	-	228.697	-	( 113.596	-	max(0, 377.037	-	721.171	+	113.596	))
=	1829.794

Note: The Operating Income data used here is two times the semi-annual (Mar. 2024) data.

Landis+Gyr Group AG (XSWX:LAND) 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, Landis+Gyr Group AG's WACC % is 7.27%. Landis+Gyr Group AG's ROC % is 6.04% (calculated using TTM income statement data). Landis+Gyr Group 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.

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Landis+Gyr Group AG (XSWX:LAND) Business Description

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GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Landis+Gyr Group AG (XSWX:LAND) » Definitions » ROC %

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LDGYY:USA LANDz:UK

Address

Alte Steinhauserstrasse 18, Cham, CHE, CH-6330

Website

https://www.landisgyr.com

Landis+Gyr Group AG is a provider of integrated energy management products tailored to an energy company. It offers electricity meters, heat and cooling meters, software services and custom solutions, grid management, and communication networks. The company's geographical segment includes the Americas, EMEA, and the Asia Pacific. The Americas segment designs, manufactures, markets, and sells the company's Gridstream and advanced meter solutions, digital electricity meters, and other related services. The EMEA segment sells the company's prepayment electricity meters, gas meters, and other services, and The Asia Pacific segment sells the company's load control devices, system deployment services, and related services. It generates a majority of its revenue from the Americas & EMEA segments.