Exel Industries (XPAR:EXE) ROIC % : 11.12% (As of Sep. 2023)

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What is Exel Industries 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 %. Exel Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was 11.12%.

As of today (2024-05-23), Exel Industries's WACC % is 8.41%. Exel Industries's ROIC % is 7.25% (calculated using TTM income statement data). Exel Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Exel Industries ROIC % Historical Data

The historical data trend for Exel Industries'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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Exel Industries ROIC % Chart

Exel Industries Annual Data

Trend

Aug13

Aug14

Aug15

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROIC %

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2.81

11.64

7.64

5.07

7.40

Exel Industries Semi-Annual Data
	Aug13	Feb14	Aug14	Feb15	Aug15	Feb16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROIC %	Get a 7-Day Free Trial															9.10	0.98	7.89	2.65	11.12

Competitive Comparison of Exel Industries's ROIC %

For the Farm & Heavy Construction Machinery subindustry, Exel Industries'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.

Exel Industries's ROIC % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Exel Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Exel Industries's ROIC % falls into.

Exel Industries ROIC % Calculation

Exel Industries'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 )
=	74.302 * ( 1 - 31.4% )	/	( (704.221	+	673.533)	/ 2 )
=	50.971172	/	688.877
=	7.40 %

where

	Invested Capital		(A: Sep. 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	))
=	893.334	-	123.593	-	( 65.52	-	max(0, 348.802	-	591.151	+	65.52	))
=	704.221

	Invested Capital		(A: 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	))
=	884.181	-	145.786	-	( 64.862	-	max(0, 334.211	-	580.492	+	64.862	))
=	673.533

Exel Industries'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 )
=	109.37 * ( 1 - 28.52% )	/	( (732.271	+	673.533)	/ 2 )
=	78.177676	/	702.902
=	11.12 %

where

	Invested Capital		(Q: Mar. 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	))
=	943.496	-	166.834	-	( 44.391	-	max(0, 409.443	-	643.98	+	44.391	))
=	732.271

	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	))
=	884.181	-	145.786	-	( 64.862	-	max(0, 334.211	-	580.492	+	64.862	))
=	673.533

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

Exel Industries (XPAR:EXE) 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, Exel Industries's WACC % is 8.41%. Exel Industries's ROIC % is 7.25% (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.

Exel Industries ROIC % Related Terms

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Exel Industries (XPAR:EXE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Exel Industries SA (XPAR:EXE) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

8YK:Germany

Address

52, rue de la Victoire, Paris, FRA, 75009

Website

http://www.exel-industries.com

Exel Industries SA is a French company which is active in the business of manufacture of spraying equipment for plant protection for professional, semi-professional and consumer agricultural applications. The company is also engaged in the business of sugar beet harvesting, providing gardening, spraying and watering equipment and industrial precision spraying solutions which cover protection, finishes, lubrication and pollution clean-up. It markets its products under the brand name of Hozelock, Berthoud, Tecnoma, Laser and Cooper Pegler brands, Kremlin rexsons and Sames. The company earns the majority of its revenue from the agricultural equipment business and geographically from Europe region.

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