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Cementos PacasmayoA (Cementos PacasmayoA) ROC % : 10.38% (As of Dec. 2023)


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What is Cementos PacasmayoA ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Cementos PacasmayoA's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 10.38%.

As of today (2024-04-28), Cementos PacasmayoA's WACC % is 14.67%. Cementos PacasmayoA's ROC % is 8.74% (calculated using TTM income statement data). Cementos PacasmayoA earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Cementos PacasmayoA ROC % Historical Data

The historical data trend for Cementos PacasmayoA's ROC % 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.

Cementos PacasmayoA ROC % Chart

Cementos PacasmayoA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.97 4.53 8.17 8.52 8.93

Cementos PacasmayoA Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC % 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 7.02 8.15 7.58 8.45 10.38

Cementos PacasmayoA ROC % Calculation

Cementos PacasmayoA's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=99.34 * ( 1 - 31.26% )/( (759.258 + 770.471)/ 2 )
=68.286316/764.8645
=8.93 %

where

Cementos PacasmayoA's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=124.532 * ( 1 - 35.45% )/( (778.486 + 770.471)/ 2 )
=80.385406/774.4785
=10.38 %

where

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


Cementos PacasmayoA  (NYSE:CPAC) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Cementos PacasmayoA's WACC % is 14.67%. Cementos PacasmayoA's ROC % is 8.74% (calculated using TTM income statement data). Cementos PacasmayoA 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 %, ROC % 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.


Cementos PacasmayoA ROC % Related Terms

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Cementos PacasmayoA (Cementos PacasmayoA) Business Description

Traded in Other Exchanges
Address
Calle La Colonia No. 150, Urbanizacion El Vivero, Surco, Lima, PER
Cementos Pacasmayo SAA is a Peruvian cement company that primarily produces, distributes, and sells cement and cement-related materials, such as concrete blocks and ready-mix concrete. The company's products are primarily used in construction. It also produces and sells quicklime for use in mining operations. The company sells its products mainly in the northern part of Peru. It owns three cement production facilities. Its flagship Pacasmayo facility is located in the northwest region of Peru, while its new cement plant in Piura and smaller Rioja facility are located in the northeast region of Peru.