Cheil Industries (XKRX:001300) ROC % : -4.14% (As of Mar. 2016)

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What is Cheil 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 %. Cheil Industries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2016 was -4.14%.

As of today (2024-06-11), Cheil Industries's WACC % is 0.00%. Cheil Industries's ROC % is -3.42% (calculated using TTM income statement data). Cheil Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cheil Industries ROC % Historical Data

The historical data trend for Cheil 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.

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Cheil Industries ROC % Chart

Cheil Industries Annual Data

Trend

Dec13

Dec14

Dec15

ROC %

0.86

-1.04

Cheil Industries Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
ROC %	Get a 7-Day Free Trial				-1.17	0.18	0.30	-2.48	-4.14

Cheil Industries ROC % Calculation

Cheil 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 )
=	-209029.561 * ( 1 - -0.49% )	/	( (8537924.873	+	31736497.933)	/ 2 )
=	-210053.8058489	/	20137211.403
=	-1.04 %

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	))
=	9245982.497	-	490427.632	-	( 217629.992	-	max(0, 972230.833	-	1526662.86	+	217629.992	))
=	8537924.873

	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	))
=	34157943.262	-	3678726.19	-	( 1348147.748	-	max(0, 10834230.193	-	9576949.332	+	1348147.748	))
=	31736497.933

Cheil Industries's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2016 is calculated as:

	ROC % (Q: Mar. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2015 )	+	Invested Capital (Q: Mar. 2016 ))	/ count )
=	-1624221.776 * ( 1 - 18.17% )	/	( (31736497.933	+	32421163.751)	/ 2 )
=	-1329100.6793008	/	32078830.842
=	-4.14 %

where

	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	))
=	34157943.262	-	3678726.19	-	( 1348147.748	-	max(0, 10834230.193	-	9576949.332	+	1348147.748	))
=	31736497.933

	Invested Capital		(Q: Mar. 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	))
=	32977048.389	-	2776825.615	-	( 1240020.967	-	max(0, 11048235.759	-	8827294.782	+	1240020.967	))
=	32421163.751

Note: The Operating Income data used here is four times the quarterly (Mar. 2016) data.

Cheil Industries (XKRX:001300) 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, Cheil Industries's WACC % is 0.00%. Cheil Industries's ROC % is -3.42% (calculated using TTM income statement data). Cheil 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.

Cheil Industries ROC % Related Terms

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Cheil Industries (XKRX:001300) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Cheil Industries Inc (XKRX:001300) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.samsungcnt.com

Samsung C&T Corp was founded in 1938. The Company was formed from the merger of Samsung C&T Corporation ('Samsung C&T') and Cheil Industries Inc. The Company operates four business including engineering & construction, trading & investment, fashion and resort & construction. In the engineering & construction business it provides services including planning, design, purchasing, construction and management of buildings, civil infrastructure, power plants and housing & developments. The Company's trading & investment business includes trading of industrial commodities such as chemicals, steel and natural resources, and organizing projects such as power plant, renewable energy and infrastructure development. The Company also trades chemicals and industrial materials including fertilizer, mining chemicals, methanol and electronic materials, steel products including hot rolled steel, plate and automotive steel, and natural resources including coal and copper. It also operates palm plantation. The Company's fashion business is engaged in manufacturing and designing fashion products and offers brands including 8 Seconds, 10 Corso Como Seoul, Aann Demeulemeester, Beanpole Men, Beanpole Ladies, Beanpole Kids, Beanpole Golf, Beanpole Accessory, Beanpole Outdoor, Balmain, Beaker, Colombo, Comme Des Garcons, Galaxy, Giuseppe Zanotti, Kuho, Lansmere, Lebeige and Valextra. The Company's resort business is engaged in operating Everland & Caribbean Bay resorts and Golf Clubs; and also engaged in construction, plant, and landscaping businesses.

Cheil Industries (XKRX:001300) Headlines

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