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Colabor Group (Colabor Group) ROIC %

: 4.31% (As of Dec. 2023)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Colabor Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 4.31%.

As of today (2024-04-18), Colabor Group's WACC % is 5.46%. Colabor Group's ROIC % is 5.25% (calculated using TTM income statement data). Colabor Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Colabor Group ROIC % Historical Data

The historical data trend for Colabor Group'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.

Colabor Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.76 4.82 4.74 4.54 4.82

Colabor Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % 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 Premium Member Only Premium Member Only Premium Member Only 6.16 1.16 6.69 8.78 4.31

Competitive Comparison

For the Food Distribution subindustry, Colabor Group'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.


Colabor Group ROIC % Distribution

For the Retail - Defensive industry and Consumer Defensive sector, Colabor Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Colabor Group's ROIC % falls into.



Colabor Group ROIC % Calculation

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

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=11.857 * ( 1 - 27.55% )/( (146.213 + 210.597)/ 2 )
=8.5903965/178.405
=4.82 %

where

Colabor Group'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 )
=12.104 * ( 1 - 35.06% )/( (154.277 + 210.597)/ 2 )
=7.8603376/182.437
=4.31 %

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.


Colabor Group  (OTCPK:COLFF) 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, Colabor Group's WACC % is 5.46%. Colabor Group's ROIC % is 5.25% (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.


Colabor Group ROIC % Related Terms

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Colabor Group (Colabor Group) Business Description

Traded in Other Exchanges
Address
1620 De Montarville Boulevard, Boucherville, QC, CAN, J4B 8P4
Colabor Group Inc is a wholesaler and distributor of food and related products in Canada. The company operates in two segments Distribution and the Wholesale segment. Its Distribution segment operations include the distribution of food products and related products in hotels, restaurants, and institutions (HRI) and the retail market. Its products such as meat, fish, and seafood (Specialty Distribution), as well as general food-related products (Broadline Distribution), and the Wholesale segment's operations, include the sale of general food-related products to distributors from its distribution center in Boucherville. The company generates maximum revenue from the Distribution segment.