Bahrain Duty Free Shop Complex BSC (BAH:DUTYF) ROIC % : -1.27% (As of Mar. 2024)

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What is Bahrain Duty Free Shop Complex BSC 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 %. Bahrain Duty Free Shop Complex BSC's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -1.27%.

As of today (2024-05-25), Bahrain Duty Free Shop Complex BSC's WACC % is 10.47%. Bahrain Duty Free Shop Complex BSC's ROIC % is -1.36% (calculated using TTM income statement data). Bahrain Duty Free Shop Complex BSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bahrain Duty Free Shop Complex BSC ROIC % Historical Data

The historical data trend for Bahrain Duty Free Shop Complex BSC'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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Bahrain Duty Free Shop Complex BSC ROIC % Chart

Bahrain Duty Free Shop Complex BSC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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10.14

0.47

-1.85

-1.27

-1.31

Bahrain Duty Free Shop Complex BSC Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROIC %	Get a 7-Day Free Trial															-1.17	-1.11	-1.28	-1.77	-1.27

Competitive Comparison of Bahrain Duty Free Shop Complex BSC's ROIC %

For the Specialty Retail subindustry, Bahrain Duty Free Shop Complex BSC'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.

Bahrain Duty Free Shop Complex BSC's ROIC % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Bahrain Duty Free Shop Complex BSC's ROIC % distribution charts can be found below:

* The bar in red indicates where Bahrain Duty Free Shop Complex BSC's ROIC % falls into.

Bahrain Duty Free Shop Complex BSC ROIC % Calculation

Bahrain Duty Free Shop Complex BSC'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 )
=	-0.579 * ( 1 - 0% )	/	( (44.791	+	43.508)	/ 2 )
=	-0.579	/	44.1495
=	-1.31 %

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	))
=	46.631	-	0.285	-	( 1.555	-	max(0, 0.295	-	1.867	+	1.555	))
=	44.791

	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	))
=	44.733	-	0.305	-	( 1.122	-	max(0, 0.317	-	1.237	+	1.122	))
=	43.508

Bahrain Duty Free Shop Complex BSC's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROIC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-0.54 * ( 1 - 0% )	/	( (43.508	+	41.863)	/ 2 )
=	-0.54	/	42.6855
=	-1.27 %

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	))
=	44.733	-	0.305	-	( 1.122	-	max(0, 0.317	-	1.237	+	1.122	))
=	43.508

	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	))
=	43.066	-	0.297	-	( 0.906	-	max(0, 0.311	-	1.695	+	0.906	))
=	41.863

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

Bahrain Duty Free Shop Complex BSC (BAH:DUTYF) 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, Bahrain Duty Free Shop Complex BSC's WACC % is 10.47%. Bahrain Duty Free Shop Complex BSC's ROIC % is -1.36% (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.

Bahrain Duty Free Shop Complex BSC ROIC % Related Terms

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Bahrain Duty Free Shop Complex BSC (BAH:DUTYF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Bahrain Duty Free Shop Complex BSC (BAH:DUTYF) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Road 21701, Diplomatic Area, Falcon Tower, Building No 60, Manama, BHR

Website

https://www.bdutyfree.com

Bahrain Duty Free Shop Complex BSC operates shops within Bahrain International Airport, Khalifa Port and Gulf Air Inflight under a concession agreement from the Government of Bahrain. Bahrain Duty Free Co WLL, a Bahraini incorporated company, 55% owned by the company and 45% owned by Gulf Air Group Holding BSC, a company owned by the Government of Bahrain, has won the new concession from the Government of Bahrain to operate the duty free business in the new Bahrain international airport. The company generates revenue primarily from the sale of goods at the duty free to its customers.

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