Republic Glass Holdings (PHS:REG) ROIC % : 6.76% (As of Mar. 2024)

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What is Republic Glass Holdings 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 %. Republic Glass Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 6.76%.

As of today (2024-05-26), Republic Glass Holdings's WACC % is 4.11%. Republic Glass Holdings's ROIC % is 1.92% (calculated using TTM income statement data). Republic Glass Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Republic Glass Holdings ROIC % Historical Data

The historical data trend for Republic Glass Holdings'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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Republic Glass Holdings ROIC % Chart

Republic Glass Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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6.79

2.22

-0.01

0.52

2.34

Republic Glass Holdings 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															10.44	-2.65	-7.14	9.02	6.76

Competitive Comparison of Republic Glass Holdings's ROIC %

For the Asset Management subindustry, Republic Glass Holdings'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.

Republic Glass Holdings's ROIC % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Republic Glass Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Republic Glass Holdings's ROIC % falls into.

Republic Glass Holdings ROIC % Calculation

Republic Glass Holdings'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 )
=	23.525 * ( 1 - -22.25% )	/	( (1088.011	+	1365.19)	/ 2 )
=	28.7593125	/	1226.6005
=	2.34 %

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	))
=	2370.355	-	38.819	-	( 1273.657	-	max(0, 39.604	-	1283.129	+	1273.657	))
=	1088.011

	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	))
=	2658.659	-	39.452	-	( 1283.105	-	max(0, 39.769	-	1293.786	+	1283.105	))
=	1365.19

Republic Glass Holdings'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 )
=	101.308 * ( 1 - 8.91% )	/	( (1365.19	+	1365.101)	/ 2 )
=	92.2814572	/	1365.1455
=	6.76 %

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	))
=	2658.659	-	39.452	-	( 1283.105	-	max(0, 39.769	-	1293.786	+	1283.105	))
=	1365.19

	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	))
=	2686.998	-	39.223	-	( 1310.141	-	max(0, 39.487	-	1322.161	+	1310.141	))
=	1365.101

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

Republic Glass Holdings (PHS:REG) 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, Republic Glass Holdings's WACC % is 4.11%. Republic Glass Holdings's ROIC % is 1.92% (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.

Republic Glass Holdings ROIC % Related Terms

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Republic Glass Holdings (PHS:REG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Republic Glass Holdings Corp (PHS:REG) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

196 Salcedo Street, 6th Floor, Republic Glass Building, Legaspi Village, Makati, PHL, 1229

Website

http://www.repglass.net

Republic Glass Holdings Corp is a Philippines-based company. The company is engaged in purchasing, leasing, and selling securities of every kind of business. The operating segments of the Company are 1) Core business which relates to the company's investment activities, which involve purchasing and trading financial assets and investing in other securities and 2) Support business which relates to the company's sale of investment properties.