The Mauritius Development Investment Trust Co (XMAU:MDIT) ROIC % : -13.99% (As of Dec. 2023)

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What is The Mauritius Development Investment Trust Co 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 %. The Mauritius Development Investment Trust Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -13.99%.

As of today (2024-05-23), The Mauritius Development Investment Trust Co's WACC % is 10.37%. The Mauritius Development Investment Trust Co's ROIC % is 2.00% (calculated using TTM income statement data). The Mauritius Development Investment Trust Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

The Mauritius Development Investment Trust Co ROIC % Historical Data

The historical data trend for The Mauritius Development Investment Trust 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.

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The Mauritius Development Investment Trust Co ROIC % Chart

The Mauritius Development Investment Trust Co Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROIC %

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9.23

-36.17

261.90

147.08

-227.92

The Mauritius Development Investment Trust Co Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															-5.08	-13.55	4.33	61.22	-13.99

Competitive Comparison of The Mauritius Development Investment Trust Co's ROIC %

For the Asset Management subindustry, The Mauritius Development Investment Trust 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.

The Mauritius Development Investment Trust Co's ROIC % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, The Mauritius Development Investment Trust Co's ROIC % distribution charts can be found below:

* The bar in red indicates where The Mauritius Development Investment Trust Co's ROIC % falls into.

The Mauritius Development Investment Trust Co ROIC % Calculation

The Mauritius Development Investment Trust Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROIC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-152.466 * ( 1 - 0.11% )	/	( (95.725	+	37.914)	/ 2 )
=	-152.2982874	/	66.8195
=	-227.92 %

where

	Invested Capital		(A: Jun. 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	))
=	1612.881	-	72.382	-	( 1558.967	-	max(0, 138.014	-	1582.788	+	1558.967	))
=	95.725

	Invested Capital		(A: 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	))
=	1402.346	-	102.988	-	( 1291.729	-	max(0, 111.234	-	1372.678	+	1291.729	))
=	37.914

The Mauritius Development Investment Trust Co'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: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-214.396 * ( 1 - -0.15% )	/	( (1544.128	+	1526.367)	/ 2 )
=	-214.717594	/	1535.2475
=	-13.99 %

where

	Invested Capital		(Q: Sep. 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	))
=	1526.058	-	0	-	( 0	-	max(0, 113.886	-	95.816	+	0	))
=	1544.128

	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	))
=	1473.636	-	0	-	( 0	-	max(0, 116.587	-	63.856	+	0	))
=	1526.367

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

The Mauritius Development Investment Trust Co (XMAU:MDIT) 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, The Mauritius Development Investment Trust Co's WACC % is 10.37%. The Mauritius Development Investment Trust Co's ROIC % is 2.00% (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.

The Mauritius Development Investment Trust Co ROIC % Related Terms

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The Mauritius Development Investment Trust Co (XMAU:MDIT) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » The Mauritius Development Investment Trust Co Ltd (XMAU:MDIT) » Definitions » ROIC %

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Traded in Other Exchanges

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Address

206 The Catalyst, 40 Silicon Avenue, Ebene, MUS, 72201

Website

https://www.website.mdit.mu

The Mauritius Development Investment Trust Co Ltd is an investment trust and a closed-end fund. Its investment objective is to secure for investors the benefits of a good dividend yield as well as long-term capital growth. The company is organized into one main operating segment, which invests in quoted and unquoted securities both on the local and overseas market. The company operates in Mauritius, Europe, United Kingdom, United States, Asia and South Africa, out of which it derives maximum revenue from Mauritius.

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