Airobot Technologies AS (OTSE:AIR) ROIC % : 111.89% (As of Dec. 2023)

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What is Airobot Technologies AS 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 %. Airobot Technologies AS's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 111.89%.

As of today (2024-05-22), Airobot Technologies AS's WACC % is 10.32%. Airobot Technologies AS's ROIC % is 15.92% (calculated using TTM income statement data). Airobot Technologies AS 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.

Airobot Technologies AS ROIC % Historical Data

The historical data trend for Airobot Technologies AS'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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Airobot Technologies AS ROIC % Chart

Airobot Technologies AS Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

5.39

5.50

-55.92

-203.74

19.61

Airobot Technologies AS Semi-Annual Data
	Dec19	Dec20	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial			-	-258.76	-138.81	-103.16	111.89

Competitive Comparison of Airobot Technologies AS's ROIC %

For the Consumer Electronics subindustry, Airobot Technologies AS'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.

Airobot Technologies AS's ROIC % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Airobot Technologies AS's ROIC % distribution charts can be found below:

* The bar in red indicates where Airobot Technologies AS's ROIC % falls into.

Airobot Technologies AS ROIC % Calculation

Airobot Technologies AS's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	0.06 * ( 1 - 0% )	/	( (0.229	+	0.383)	/ 2 )
=	0.06	/	0.306
=	19.61 %

where

	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	))
=	0.722	-	0.191	-	( 0.388	-	max(0, 0.328	-	0.63	+	0.388	))
=	0.229

	Invested Capital		(A: Dec. 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	))
=	0.776	-	0.192	-	( 0.318	-	max(0, 0.329	-	0.53	+	0.318	))
=	0.383

Airobot Technologies AS's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	0.494 * ( 1 - 0% )	/	( (0.5	+	0.383)	/ 2 )
=	0.494	/	0.4415
=	111.89 %

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	))
=	0.745	-	0.207	-	( 0.263	-	max(0, 0.542	-	0.58	+	0.263	))
=	0.5

	Invested Capital		(Q: Dec. 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	))
=	0.776	-	0.192	-	( 0.318	-	max(0, 0.329	-	0.53	+	0.318	))
=	0.383

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

Airobot Technologies AS (OTSE:AIR) 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, Airobot Technologies AS's WACC % is 10.32%. Airobot Technologies AS's ROIC % is 15.92% (calculated using TTM income statement data). Airobot Technologies AS 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. Airobot Technologies AS 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.

Airobot Technologies AS ROIC % Related Terms

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Airobot Technologies AS (OTSE:AIR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Airobot Technologies AS (OTSE:AIR) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

Suur-sojamae 37a, Rae Vald, EST, 75322

Website

https://www.airobothome.com

Airobot Technologies AS is an indoor climate technology and production company, which is characterized by strong software and air analysis. The company's main product is innovative ventilation equipment with a demand-based control algorithm, which has been developed in cooperation with researchers from the University of Tartu and TalTech.