Gismondi 1754 SpA (MIL:GIS) ROIC % : 9.48% (As of Jun. 2023)

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What is Gismondi 1754 SpA ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Gismondi 1754 SpA's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was 9.48%.

As of today (2024-06-01), Gismondi 1754 SpA's WACC % is 5.17%. Gismondi 1754 SpA's ROIC % is 15.71% (calculated using TTM income statement data). Gismondi 1754 SpA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Gismondi 1754 SpA ROIC % Historical Data

The historical data trend for Gismondi 1754 SpA's ROIC % 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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Gismondi 1754 SpA ROIC % Chart

Gismondi 1754 SpA Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

ROIC %

1.19

17.12

19.24

3.61

4.15

Gismondi 1754 SpA Semi-Annual Data
	Dec17	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROIC %	Get a 7-Day Free Trial						1.71	6.85	8.76	23.94	9.48

Competitive Comparison of Gismondi 1754 SpA's ROIC %

For the Luxury Goods subindustry, Gismondi 1754 SpA's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Gismondi 1754 SpA's ROIC % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Gismondi 1754 SpA's ROIC % distribution charts can be found below:

* The bar in red indicates where Gismondi 1754 SpA's ROIC % falls into.

Gismondi 1754 SpA ROIC % Calculation

Gismondi 1754 SpA's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROIC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	0.595 * ( 1 - 32.24% )	/	( (9.504	+	9.92)	/ 2 )
=	0.403172	/	9.712
=	4.15 %

where

	Invested Capital		(A: Dec. 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	))
=	14.488	-	2.176	-	( 2.808	-	max(0, 3.31	-	12.404	+	2.808	))
=	9.504

	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	))
=	15.471	-	2.678	-	( 2.873	-	max(0, 4.271	-	13.615	+	2.873	))
=	9.92

Gismondi 1754 SpA's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROIC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	2.426 * ( 1 - 36.17% )	/	( (14.399	+	18.275)	/ 2 )
=	1.5485158	/	16.337
=	9.48 %

where

	Invested Capital		(Q: 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	))
=	22.118	-	5.196	-	( 2.523	-	max(0, 8.18	-	20.136	+	2.523	))
=	14.399

	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	))
=	23.901	-	4.387	-	( 1.239	-	max(0, 8.83	-	21.844	+	1.239	))
=	18.275

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

Gismondi 1754 SpA (MIL:GIS) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Gismondi 1754 SpA's WACC % is 5.17%. Gismondi 1754 SpA's ROIC % is 15.71% (calculated using TTM income statement data). Gismondi 1754 SpA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Gismondi 1754 SpA 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 %, ROIC % 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.

Gismondi 1754 SpA ROIC % Related Terms

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Gismondi 1754 SpA (MIL:GIS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Gismondi 1754 SpA (MIL:GIS) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Via Galata, 72-74r, Genoa, ITA

Website

https://www.gismondi1754.com

Gismondi 1754 SpA is engaged in creation, production and marketing of jewelry. The company manufactures rings, necklaces, earrings, and pendants. Its brands are Essenza, Noi, Aura, Era, Dedalo, and Prato Fiorito.