British Polythene Industries (LSE:BPI) ROC % : 9.60% (As of Dec. 2015)

View and export this data going back to 1965. Start your Free Trial

What is British Polythene Industries 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 %. British Polythene Industries's annualized return on capital (ROC %) for the quarter that ended in Dec. 2015 was 9.60%.

As of today (2024-05-29), British Polythene Industries's WACC % is 0.00%. British Polythene Industries's ROC % is 0.00% (calculated using TTM income statement data). British Polythene Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

British Polythene Industries ROC % Historical Data

The historical data trend for British Polythene Industries'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.

British Polythene Industries ROC % Chart

British Polythene Industries Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROC %

Get a 7-Day Free Trial

11.02

10.22

10.06

11.86

12.39

British Polythene Industries Semi-Annual Data
	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15
ROC %	Get a 7-Day Free Trial															5.47	14.88	9.19	16.01	9.60

British Polythene Industries ROC % Calculation

British Polythene Industries's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	27.5 * ( 1 - 24.24% )	/	( (168.2	+	168.1)	/ 2 )
=	20.834	/	168.15
=	12.39 %

where

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	250.4	-	81.7	-	( 0.5	-	max(0, 85.3	-	127.4	+	0.5	))
=	168.2

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	249.5	-	80.9	-	( 0.5	-	max(0, 83.3	-	138.3	+	0.5	))
=	168.1

British Polythene Industries's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2015 is calculated as:

	ROC % (Q: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2015 )	+	Invested Capital (Q: Dec. 2015 ))	/ count )
=	19 * ( 1 - 17.57% )	/	( (158.3	+	168.1)	/ 2 )
=	15.6617	/	163.2
=	9.60 %

where

	Invested Capital		(Q: Jun. 2015 )
=	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	))
=	254.2	-	93.9	-	( 2	-	max(0, 94.4	-	142.7	+	2	))
=	158.3

	Invested Capital		(Q: Dec. 2015 )
=	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	))
=	249.5	-	80.9	-	( 0.5	-	max(0, 83.3	-	138.3	+	0.5	))
=	168.1

Note: The Operating Income data used here is two times the semi-annual (Dec. 2015) data.

British Polythene Industries (LSE:BPI) 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, British Polythene Industries's WACC % is 0.00%. British Polythene Industries's ROC % is 0.00% (calculated using TTM income statement data). British Polythene Industries 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.

British Polythene Industries ROC % Related Terms

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

British Polythene Industries (LSE:BPI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » British Polythene Industries PLC (LSE:BPI) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Website

http://www.bpipoly.com

British Polythene Industries PLC was incorporated on March 16, 1910. It manufactures and supplies polythene films and related products for packaging for the protection of food and other goods. Its products are in use across different market sectors with a focus on agriculture, retail food chain, healthcare and waste services. The Company also engages in recycling of waste polythene film in Europe. The Company has three reportable segments: UK and Ireland, Mainland Europe and North America. UK & Ireland includes all of the UK manufacturing and merchanting activities along with the Irish sales operation which distributes predominately UK manufactured products.It also includes the manufacturing operations in China. Mainland Europe comprises the manufacturing and merchanting activities located in Belgium, the Netherlands and France. North America comprises the manufacturing business in Canada with sales throughout North America and Canada.

British Polythene Industries (LSE:BPI) Headlines

No Headlines