PTwit Sumbermasrana Tbk (ISX:SSMS) ROC % : 15.45% (As of Mar. 2024)

View and export this data going back to 2013. Start your Free Trial

What is PTwit Sumbermasrana Tbk 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 %. PTwit Sumbermasrana Tbk's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 15.45%.

As of today (2024-06-02), PTwit Sumbermasrana Tbk's WACC % is 7.16%. PTwit Sumbermasrana Tbk's ROC % is 5.87% (calculated using TTM income statement data). PTwit Sumbermasrana Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PTwit Sumbermasrana Tbk ROC % Historical Data

The historical data trend for PTwit Sumbermasrana Tbk'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.

PTwit Sumbermasrana Tbk ROC % Chart

PTwit Sumbermasrana Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

0.44

7.85

14.23

21.50

6.11

PTwit Sumbermasrana Tbk Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															11.19	-4.84	10.28	12.10	15.45

PTwit Sumbermasrana Tbk ROC % Calculation

PTwit Sumbermasrana Tbk'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 )
=	969300.749 * ( 1 - 37.69% )	/	( (9362400.695	+	10395540.185)	/ 2 )
=	603971.2967019	/	9878970.44
=	6.11 %

where

	Invested Capital		(A: Dec. 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	))
=	11136909.8	-	1307846.064	-	( 1806836.518	-	max(0, 4172292.592	-	4638955.633	+	1806836.518	))
=	9362400.695

	Invested Capital		(A: Dec. 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	))
=	11810444.633	-	1141536.676	-	( 1237290.419	-	max(0, 4754859.437	-	5028227.209	+	1237290.419	))
=	10395540.185

PTwit Sumbermasrana Tbk's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	2142905.624 * ( 1 - 25.29% )	/	( (10395540.185	+	10322454.398)	/ 2 )
=	1600964.7916904	/	10358997.2915
=	15.45 %

where

	Invested Capital		(Q: Dec. 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	))
=	11810444.633	-	1141536.676	-	( 1237290.419	-	max(0, 4754859.437	-	5028227.209	+	1237290.419	))
=	10395540.185

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	12156484.905	-	1103827.939	-	( 1376693.232	-	max(0, 4994592.49	-	5724795.058	+	1376693.232	))
=	10322454.398

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

PTwit Sumbermasrana Tbk (ISX:SSMS) 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, PTwit Sumbermasrana Tbk's WACC % is 7.16%. PTwit Sumbermasrana Tbk's ROC % is 5.87% (calculated using TTM income statement data). PTwit Sumbermasrana Tbk 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.

PTwit Sumbermasrana Tbk ROC % Related Terms

Thank you for viewing the detailed overview of PTwit Sumbermasrana Tbk's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

PTwit Sumbermasrana Tbk (ISX:SSMS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » PT Sawit Sumbermas Sarana Tbk (ISX:SSMS) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

16S:Germany

Address

Jalan H. Udan Said Number 47, Kalimantan Tengah, Pangkalan Bun, IDN, 74113

Website

https://www.ssms.co.id

PT Sawit Sumbermas Sarana Tbk operates several palm oil plantations and mills in Southeast Asia. It acquired land by either purchasing, obtaining land permits, or through a licensing process. The company harvests and processes the crops into crude palm oil, palm kernels, and palm kernel oil. Performance and plantation management is consistently monitored by agronomists, plant engineers, and experienced management. To achieve optimal capacity at its mills, the company may purchase crude palm oil from local farmers. It markets, sells, and distributes products directly to consumers and implemented a system where its sales team negotiates the price and delivery terms for each sale.

PTwit Sumbermasrana Tbk (ISX:SSMS) Headlines

No Headlines