Nusco SpA (MIL:NUS) ROIC % : 7.72% (As of Jun. 2023)

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What is Nusco 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 %. Nusco SpA's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was 7.72%.

As of today (2024-05-04), Nusco SpA's WACC % is 9.12%. Nusco SpA's ROIC % is 6.22% (calculated using TTM income statement data). Nusco SpA earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nusco SpA ROIC % Historical Data

The historical data trend for Nusco 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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Nusco SpA ROIC % Chart

Nusco SpA Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

ROIC %

5.69

21.07

4.10

4.48

Nusco SpA Semi-Annual Data
	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROIC %	Get a 7-Day Free Trial			21.59	-3.91	5.22	4.00	7.72

Competitive Comparison of Nusco SpA's ROIC %

For the Building Products & Equipment subindustry, Nusco 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.

Nusco SpA's ROIC % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Nusco SpA's ROIC % distribution charts can be found below:

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

Nusco SpA ROIC % Calculation

Nusco SpA's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROIC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	2.452 * ( 1 - 42.24% )	/	( (28.187	+	34.993)	/ 2 )
=	1.4162752	/	31.59
=	4.48 %

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	))
=	37.64	-	8.308	-	( 1.145	-	max(0, 13.385	-	26.952	+	1.145	))
=	28.187

	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	))
=	54.856	-	18.388	-	( 1.475	-	max(0, 22.614	-	36.858	+	1.475	))
=	34.993

Nusco 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 )
=	4.264 * ( 1 - 34.77% )	/	( (34.993	+	37.087)	/ 2 )
=	2.7814072	/	36.04
=	7.72 %

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	))
=	54.856	-	18.388	-	( 1.475	-	max(0, 22.614	-	36.858	+	1.475	))
=	34.993

	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	))
=	58.055	-	17.689	-	( 3.279	-	max(0, 23.292	-	40.534	+	3.279	))
=	37.087

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

Nusco SpA (MIL:NUS) 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, Nusco SpA's WACC % is 9.12%. Nusco SpA's ROIC % is 6.22% (calculated using TTM income statement data).

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.

Nusco SpA ROIC % Related Terms

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Nusco SpA (MIL:NUS) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

S.S.7 bis km 50.500, Nola, ITA, 80035

Website

https://www.nuscospa.com

Nusco SpA is operating in the production and sale of doors and windows. Its products include Veneer doors, laminated doors, security doors, solid wood doors, pantograph and engraving doors, invisible doors, reversible doors, sliding doors, Wood and aluminum windows, Aluminium and wood doors, Windows in PVC, Shutters.