Siliconware Precision Industries Co (Siliconware Precision Industries Co) ROIC % : 3.07% (As of Mar. 2018)

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What is Siliconware Precision Industries 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 %. Siliconware Precision Industries Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2018 was 3.07%.

As of today (2024-04-26), Siliconware Precision Industries Co's WACC % is 0.00%. Siliconware Precision Industries Co's ROIC % is 0.00% (calculated using TTM income statement data). Siliconware Precision Industries Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Siliconware Precision Industries Co ROIC % Historical Data

The historical data trend for Siliconware Precision Industries 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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Siliconware Precision Industries Co ROIC % Chart

Siliconware Precision Industries Co Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

ROIC %

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9.07

13.16

12.64

10.01

8.36

Siliconware Precision Industries Co Quarterly Data
	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18
ROIC %	Get a 7-Day Free Trial															5.53	5.07	10.72	7.93	3.07

Competitive Comparison of Siliconware Precision Industries Co's ROIC %

For the Semiconductors subindustry, Siliconware Precision Industries 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.

Siliconware Precision Industries Co's ROIC % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Siliconware Precision Industries Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Siliconware Precision Industries Co's ROIC % falls into.

Siliconware Precision Industries Co ROIC % Calculation

Siliconware Precision Industries Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2017 is calculated as:

	ROIC % (A: Dec. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2016 )	+	Invested Capital (A: Dec. 2017 ))	/ count )
=	295.155 * ( 1 - 17.54% )	/	( (3046.861	+	2775.121)	/ 2 )
=	243.384813	/	2910.991
=	8.36 %

where

	Invested Capital		(A: Dec. 2016 )
=	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	))
=	3866.418	-	526.973	-	( 770.439	-	max(0, 1283.994	-	1576.578	+	770.439	))
=	3046.861

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	4033.648	-	494.992	-	( 816.04	-	max(0, 874.48	-	1638.015	+	816.04	))
=	2775.121

Siliconware Precision Industries Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2018 is calculated as:

	ROIC % (Q: Mar. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2017 )	+	Invested Capital (Q: Mar. 2018 ))	/ count )
=	160.396 * ( 1 - 39.22% )	/	( (2775.121	+	3583.853)	/ 2 )
=	97.4886888	/	3179.487
=	3.07 %

where

	Invested Capital		(Q: Dec. 2017 )
=	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	))
=	4033.648	-	494.992	-	( 816.04	-	max(0, 874.48	-	1638.015	+	816.04	))
=	2775.121

	Invested Capital		(Q: Mar. 2018 )
=	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	))
=	4351.635	-	250.293	-	( 1074.037	-	max(0, 1361.559	-	1879.048	+	1074.037	))
=	3583.853

Note: The Operating Income data used here is four times the quarterly (Mar. 2018) data.

Siliconware Precision Industries Co (NAS:SPIL) 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, Siliconware Precision Industries Co's WACC % is 0.00%. Siliconware Precision Industries Co's ROIC % is 0.00% (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.

Siliconware Precision Industries Co ROIC % Related Terms

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Siliconware Precision Industries Co (Siliconware Precision Industries Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Siliconware Precision Industries Co Ltd (NAS:SPIL) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.spil.com.tw

Siliconware Precision Industries is a leading subcontractor of outsourced assembly and testing services for the semiconductor industry. The company was founded in Taiwan in 1984 and went public in the U.S. through the issuance of ADRs in 2000. Its cost management, disciplined capital spending, and strong balance sheet have set it apart from most of its peers.

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