Evergreen International Storage & Transport (TPE:2607) ROC % : 5.98% (As of Mar. 2024)

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What is Evergreen International Storage & Transport 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 %. Evergreen International Storage & Transport's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 5.98%.

As of today (2024-06-01), Evergreen International Storage & Transport's WACC % is 9.79%. Evergreen International Storage & Transport's ROC % is 6.40% (calculated using TTM income statement data). Evergreen International Storage & Transport earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Evergreen International Storage & Transport ROC % Historical Data

The historical data trend for Evergreen International Storage & Transport'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.

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Evergreen International Storage & Transport ROC % Chart

Evergreen International Storage & Transport Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.57

2.02

2.74

8.87

6.19

Evergreen International Storage & Transport Quarterly Data
	Jun19	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															4.88	6.36	7.71	4.29	5.98

Evergreen International Storage & Transport ROC % Calculation

Evergreen International Storage & Transport'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 )
=	2607.461 * ( 1 - 24.97% )	/	( (32060.029	+	31184.049)	/ 2 )
=	1956.3779883	/	31622.039
=	6.19 %

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	))
=	42047.855	-	1861.609	-	( 8251.758	-	max(0, 2911.03	-	11037.247	+	8251.758	))
=	32060.029

	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	))
=	43418.01	-	2710.137	-	( 9523.824	-	max(0, 3671.801	-	15098.372	+	9523.824	))
=	31184.049

Evergreen International Storage & Transport'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 )
=	2353.972 * ( 1 - 20.12% )	/	( (31184.049	+	31696.674)	/ 2 )
=	1880.3528336	/	31440.3615
=	5.98 %

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	))
=	43418.01	-	2710.137	-	( 9523.824	-	max(0, 3671.801	-	15098.372	+	9523.824	))
=	31184.049

	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	))
=	44748.272	-	2745.349	-	( 10306.249	-	max(0, 3542.252	-	16472.264	+	10306.249	))
=	31696.674

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

Evergreen International Storage & Transport (TPE:2607) 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, Evergreen International Storage & Transport's WACC % is 9.79%. Evergreen International Storage & Transport's ROC % is 6.40% (calculated using TTM income statement data). Evergreen International Storage & Transport 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.

Evergreen International Storage & Transport ROC % Related Terms

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Evergreen International Storage & Transport (TPE:2607) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Evergreen International Storage & Transport Corp (TPE:2607) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

899, Ching Kuo Road, Taoyuan District, Taoyuan, TWN

Website

https://www.evergreen-eitc.com.tw

Evergreen International Storage & Transport Corp is a transportation and logistics company domiciled in Taiwan. The company organizes itself into five product lines: inland transportation, international marine transportation, container terminals, gasoline stations, and others. Inland transportation, which is the largest segment by revenue, transports cargo inland and provides passenger transportation services. International marine transportation, the second-largest segment, transports cargo internationally and provides ship chartering. The container terminals segment leases and operate container ports. The gasoline station segment operates refueling stations. The company generates the majority of its revenue in Taiwan.

Evergreen International Storage & Transport (TPE:2607) Headlines

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