Dhofar Poultry CoOG (MUS:DPCI) ROC % : 3.71% (As of Mar. 2018)

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What is Dhofar Poultry CoOG 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 %. Dhofar Poultry CoOG's annualized return on capital (ROC %) for the quarter that ended in Mar. 2018 was 3.71%.

As of today (2024-05-28), Dhofar Poultry CoOG's WACC % is 0.00%. Dhofar Poultry CoOG's ROC % is 0.00% (calculated using TTM income statement data). Dhofar Poultry CoOG earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Dhofar Poultry CoOG ROC % Historical Data

The historical data trend for Dhofar Poultry CoOG'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.

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Dhofar Poultry CoOG ROC % Chart

Dhofar Poultry CoOG Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

ROC %

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11.36

-9.21

-1.70

4.84

2.77

Dhofar Poultry CoOG Quarterly Data
	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18
ROC %	Get a 7-Day Free Trial															4.11	2.86	5.46	17.21	3.71

Dhofar Poultry CoOG ROC % Calculation

Dhofar Poultry CoOG's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2017 is calculated as:

	ROC % (A: Dec. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2016 )	+	Invested Capital (A: Dec. 2017 ))	/ count )
=	0.402 * ( 1 - 17.27% )	/	( (11.665	+	12.306)	/ 2 )
=	0.3325746	/	11.9855
=	2.77 %

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	))
=	12.497	-	2.938	-	( 0.022	-	max(0, 8.171	-	6.065	+	0.022	))
=	11.665

	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	))
=	13.689	-	3.385	-	( 0.029	-	max(0, 9.075	-	7.073	+	0.029	))
=	12.306

Dhofar Poultry CoOG's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2018 is calculated as:

	ROC % (Q: Mar. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2017 )	+	Invested Capital (Q: Mar. 2018 ))	/ count )
=	0.452 * ( 1 - 0% )	/	( (12.306	+	12.049)	/ 2 )
=	0.452	/	12.1775
=	3.71 %

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	))
=	13.689	-	3.385	-	( 0.029	-	max(0, 9.075	-	7.073	+	0.029	))
=	12.306

	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	))
=	13.628	-	2.867	-	( 0.063	-	max(0, 8.352	-	7.064	+	0.063	))
=	12.049

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

Dhofar Poultry CoOG (MUS:DPCI) 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, Dhofar Poultry CoOG's WACC % is 0.00%. Dhofar Poultry CoOG's ROC % is 0.00% (calculated using TTM income statement data). Dhofar Poultry CoOG 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.

Dhofar Poultry CoOG ROC % Related Terms

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Dhofar Poultry CoOG (MUS:DPCI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Dhofar Poultry Co SAOG (MUS:DPCI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

P.O. Box 2855, Dhofar, Salalah, OMN, 211

Website

http://www.dhofarchicken.com

Dhofar Poultry Co SAOG is engaged in poultry farming, processing, and marketing of fresh and frozen whole chicken as well as portions in Oman and United Arab Emirates. The company undertakes poultry operations involving hatching, growing, and processing of poultry livestock which are sold through distributors and also directly to the retail market. It has broiler houses and processing plants located in Salalah. Its customers include hyper, supermarkets, specialty restaurants, and food service segments. Its product range includes fresh and frozen whole chicken, chicken portions comprising of boneless breast, drumstick, thighs, wings, and giblets, heart, gizzard, and liver. It generates the majority of the revenue from Gulf Cooperation Council countries followed by Sultanate of Oman.

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