ZIM Integrated Shipping Services (FRA:2SV) ROC % : 8.02% (As of Mar. 2024)

View and export this data going back to 2021. Start your Free Trial

What is ZIM Integrated Shipping Services 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 %. ZIM Integrated Shipping Services's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 8.02%.

As of today (2024-06-09), ZIM Integrated Shipping Services's WACC % is 9.61%. ZIM Integrated Shipping Services's ROC % is -25.64% (calculated using TTM income statement data). ZIM Integrated Shipping Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.

ZIM Integrated Shipping Services ROC % Historical Data

The historical data trend for ZIM Integrated Shipping Services'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.

* Premium members only.

ZIM Integrated Shipping Services ROC % Chart

ZIM Integrated Shipping Services Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

68.87

31.14

109.90

61.62

-27.65

ZIM Integrated Shipping Services Quarterly Data
	Dec18	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-0.52	-5.33	-102.75	-1.85	8.02

ZIM Integrated Shipping Services ROC % Calculation

ZIM Integrated Shipping Services's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-2279.295 * ( 1 - 4.53% )	/	( (8630.992	+	7106.658)	/ 2 )
=	-2176.0429365	/	7868.825
=	-27.65 %

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	))
=	10974.283	-	824.018	-	( 3072.909	-	max(0, 2513.117	-	4032.39	+	3072.909	))
=	8630.992

	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	))
=	7653.282	-	497.748	-	( 1646.565	-	max(0, 2309.098	-	2357.974	+	1646.565	))
=	7106.658

ZIM Integrated Shipping Services'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: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	620.816 * ( 1 - 4.36% )	/	( (7106.658	+	7703.16)	/ 2 )
=	593.7484224	/	7404.909
=	8.02 %

where

	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	))
=	7653.282	-	497.748	-	( 1646.565	-	max(0, 2309.098	-	2357.974	+	1646.565	))
=	7106.658

	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	))
=	8217.072	-	563.224	-	( 1318.084	-	max(0, 2347.472	-	2298.16	+	1318.084	))
=	7703.16

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

ZIM Integrated Shipping Services (FRA:2SV) 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, ZIM Integrated Shipping Services's WACC % is 9.61%. ZIM Integrated Shipping Services's ROC % is -25.64% (calculated using TTM income statement data). ZIM Integrated Shipping Services 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.

ZIM Integrated Shipping Services ROC % Related Terms

Thank you for viewing the detailed overview of ZIM Integrated Shipping Services's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

ZIM Integrated Shipping Services (FRA:2SV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » ZIM Integrated Shipping Services Ltd (FRA:2SV) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

ZIM:USA

Address

9 Andrei Sakharov Street, P.O. Box 15067, Matam, Haifa, ISR, 3190500

Website

https://www.zim.com

ZIM Integrated Shipping Services Ltd is an asset-light container liner shipping company. It offers tailored services, including land transportation and logistical services, specialized shipping solutions, including the transportation of out-of-gauge cargo, refrigerated cargo, and dangerous and hazardous cargo. Its services include Cargo Services, Digital Services, Schedules, and Shipping Trades and Lines. Geographically, it derives a majority of revenue from the Pacific.

ZIM Integrated Shipping Services (FRA:2SV) Headlines

No Headlines