ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Cho Bi Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 7.86%.
As of today (2024-06-03), Cho Bi Co's WACC % is 6.92%. Cho Bi Co's ROIC % is -3.28% (calculated using TTM income statement data).
Cho Bi Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Cho Bi Co ROIC % Historical Data
The historical data trend for Cho Bi Co'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.
For the Agricultural Inputs subindustry, Cho Bi Co'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.
Cho Bi Co's ROIC % Distribution in the Agriculture Industry
For the Agriculture industry and Basic Materials sector, Cho Bi Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Cho Bi Co's ROIC % falls into.
Cho Bi Co ROIC % Calculation
Cho Bi Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Mar. 2024) 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.
Cho Bi Co (XKRX:001550) 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, Cho Bi Co's WACC % is 6.92%. Cho Bi Co's ROIC % is -3.28% (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.
Cho Bi Co ROIC % Related Terms
Thank you for viewing the detailed overview of Cho Bi Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cho Bi Co Ltd is a South Korea-based company mainly engaged in the manufacturing and distributing of fertilizers. Its fertilizer products consist of compound fertilizers for top dressing, which are used for horticulture, fruit trees, and paddy rice; bulk bending fertilizers; compound fertilizers for basal dressing, which are used for tobacco, peanuts, vegetables, garlic and onions, fruit and fruit trees, chestnuts, rice seedbeds, paddy rice, potatoes and turfs and other types of fertilizers.
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