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Signaux Girod (XPAR:ALGIR) ROIC % : 10.52% (As of Sep. 2023)


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What is Signaux Girod 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 %. Signaux Girod's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was 10.52%.

As of today (2024-05-14), Signaux Girod's WACC % is 3.66%. Signaux Girod's ROIC % is 6.34% (calculated using TTM income statement data). Signaux Girod 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.


Signaux Girod ROIC % Historical Data

The historical data trend for Signaux Girod'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.

Signaux Girod ROIC % Chart

Signaux Girod Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.04 -5.68 1.83 -1.88 6.28

Signaux Girod Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.17 -6.66 4.18 2.37 10.52

Competitive Comparison of Signaux Girod's ROIC %

For the Railroads subindustry, Signaux Girod'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.


Signaux Girod's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Signaux Girod's ROIC % distribution charts can be found below:

* The bar in red indicates where Signaux Girod's ROIC % falls into.



Signaux Girod ROIC % Calculation

Signaux Girod's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Sep. 2023 is calculated as:

ROIC % (A: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2022 ) + Invested Capital (A: Sep. 2023 ))/ count )
=4.487 * ( 1 - 6.97% )/( (68.24 + 64.769)/ 2 )
=4.1742561/66.5045
=6.28 %

where

Signaux Girod's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

ROIC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=7.23 * ( 1 - 5.99% )/( (64.467 + 64.769)/ 2 )
=6.796923/64.618
=10.52 %

where

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


Signaux Girod  (XPAR:ALGIR) 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, Signaux Girod's WACC % is 3.66%. Signaux Girod's ROIC % is 6.34% (calculated using TTM income statement data). Signaux Girod 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. Signaux Girod 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.


Signaux Girod ROIC % Related Terms

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Signaux Girod (XPAR:ALGIR) Business Description

Traded in Other Exchanges
N/A
Address
881 Route des Fontaines, P.O. Box 30004, Morez, Bellefontaine, FRA, 39400
Signaux Girod SA is a company engaged in the design and development, erection, maintenance and lease of road signs and associated products. The group product and service include enamel signage equipment: for airport and station signs, illuminated signs, cultural location signs, road signs, road sign equipment, ground marking services: for work on roads, parking lots, tourist signage equipment, location identification equipment: for information and orientation in a public or private place, street fittings: bus shelters, municipal display boards and temporary signage equipment. The group also distributes media to sign letterers, screen printers, sign painters, and digital printing specialists.

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