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Italian Sea Group (MIL:TISG) ROIC % : 21.36% (As of Dec. 2023)


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What is Italian Sea Group 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 %. Italian Sea Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 21.36%.

As of today (2024-05-29), Italian Sea Group's WACC % is 9.06%. Italian Sea Group's ROIC % is 15.67% (calculated using TTM income statement data). Italian Sea Group 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.


Italian Sea Group ROIC % Historical Data

The historical data trend for Italian Sea Group'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.

* Premium members only.

Italian Sea Group ROIC % Chart

Italian Sea Group Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial 0.35 5.70 15.98 13.29 15.19

Italian Sea Group Semi-Annual Data
Dec18 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.74 9.74 11.90 9.33 21.36

Competitive Comparison of Italian Sea Group's ROIC %

For the Leisure subindustry, Italian Sea Group'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.


Italian Sea Group's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Italian Sea Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Italian Sea Group's ROIC % falls into.



Italian Sea Group ROIC % Calculation

Italian Sea Group'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 )
=39.95 * ( 1 - 18.41% )/( (210.971 + 218.236)/ 2 )
=32.595205/214.6035
=15.19 %

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))
=342.262 - 118.169 - ( 81.317 - max(0, 151.438 - 164.56+81.317))
=210.971

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))
=377.389 - 127.538 - ( 76.413 - max(0, 178.822 - 210.437+76.413))
=218.236

Italian Sea Group'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 )
=51.888 * ( 1 - 10.68% )/( (215.719 + 218.236)/ 2 )
=46.3463616/216.9775
=21.36 %

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))
=346.998 - 112.126 - ( 65.332 - max(0, 164.149 - 183.302+65.332))
=215.719

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))
=377.389 - 127.538 - ( 76.413 - max(0, 178.822 - 210.437+76.413))
=218.236

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

* 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.


Italian Sea Group  (MIL:TISG) 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, Italian Sea Group's WACC % is 9.06%. Italian Sea Group's ROIC % is 15.67% (calculated using TTM income statement data). Italian Sea Group 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. Italian Sea Group 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.


Italian Sea Group ROIC % Related Terms

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Italian Sea Group (MIL:TISG) Business Description

Traded in Other Exchanges
Address
Viale Cristoforo Colombo, 4Bis, Marina di Carrara, ITA, 54033
Italian Sea Group is engaged in designing, manufacturing, and sales of custom-made luxury superyachts. The yachts offered by the company include Quinta Essentia, Entourage, Planet Nine, and Tremenda among others.

Italian Sea Group (MIL:TISG) Headlines

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