TIL Enviro (HKSE:01790) ROC % : 2.75% (As of Dec. 2023)

View and export this data going back to 2018. Start your Free Trial

What is TIL Enviro 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 %. TIL Enviro's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 2.75%.

As of today (2024-06-11), TIL Enviro's WACC % is 5.01%. TIL Enviro's ROC % is 3.82% (calculated using TTM income statement data). TIL Enviro earns returns that do not match up to its cost of capital. It will destroy value as it grows.

TIL Enviro ROC % Historical Data

The historical data trend for TIL Enviro'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.

TIL Enviro ROC % Chart

TIL Enviro Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

8.11

8.26

6.47

4.46

3.74

TIL Enviro Semi-Annual Data
	Dec15	Dec16	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial										6.17	4.54	4.68	4.99	2.75

TIL Enviro ROC % Calculation

TIL Enviro'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 )
=	99.153 * ( 1 - 19.42% )	/	( (2168.421	+	2108.797)	/ 2 )
=	79.8974874	/	2138.609
=	3.74 %

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	))
=	2311.423	-	61.088	-	( 81.914	-	max(0, 350.866	-	1171.892	+	81.914	))
=	2168.421

	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	))
=	2241.275	-	42.507	-	( 89.971	-	max(0, 304.951	-	914.781	+	89.971	))
=	2108.797

TIL Enviro's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	71.714 * ( 1 - 21.1% )	/	( (2000.603	+	2108.797)	/ 2 )
=	56.582346	/	2054.7
=	2.75 %

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	))
=	2187.014	-	45.858	-	( 140.553	-	max(0, 297.595	-	1116.12	+	140.553	))
=	2000.603

	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	))
=	2241.275	-	42.507	-	( 89.971	-	max(0, 304.951	-	914.781	+	89.971	))
=	2108.797

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

TIL Enviro (HKSE:01790) 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, TIL Enviro's WACC % is 5.01%. TIL Enviro's ROC % is 3.82% (calculated using TTM income statement data). TIL Enviro 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.

TIL Enviro ROC % Related Terms

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

TIL Enviro (HKSE:01790) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » TIL Enviro Ltd (HKSE:01790) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 233 Tianhe North Road, Unit 08, Level 61, CITIC Plaza, Tianhe District, Guangdong Province, Guangzhou, CHN, 510613

Website

http://www.tilenviro.com

TIL Enviro Ltd is a wastewater treatment service provider operating and managing wastewater treatment facilities. The company's business divisions include Wastewater treatment operation services, Recycle water supply operation services, Wastewater treatment construction services, and Finance income from service concession arrangement. Geographically, it generates a majority of its revenue from the People's Republic of China.

Executives

Cheong Sze Theng	2202 Interest of your spouse
Lee Li-may	2202 Interest of your spouse
Lgb (malaysia) Sdn. Bhd.	2201 Interest of corporation controlled by you
Lgb Group (hk) Limited	2201 Interest of corporation controlled by you
Lim Chee Meng	2103 Interests held jointly with another person
Lim Chin Sean	2103 Interests held jointly with another person
Sparkle Century Group Limited	2101 Beneficial owner

TIL Enviro (HKSE:01790) Headlines

No Headlines