ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Thessaloniki Port Authority's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was 11.70%.
As of today (2024-05-16), Thessaloniki Port Authority's WACC % is 4.83%. Thessaloniki Port Authority's ROIC % is 10.34% (calculated using TTM income statement data).
Thessaloniki Port Authority generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Thessaloniki Port Authority ROIC % Historical 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.
Competitive Comparison of Thessaloniki Port Authority's ROIC %
For the Marine Shipping subindustry, Thessaloniki Port Authority'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.
Thessaloniki Port Authority's ROIC % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Thessaloniki Port Authority's ROIC % distribution charts can be found below:
* The bar in red indicates where Thessaloniki Port Authority's ROIC % falls into.
Thessaloniki Port Authority ROIC % Calculation
Thessaloniki Port Authority's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Jun. 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.
Thessaloniki Port Authority (ATH:OLTH) 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, Thessaloniki Port Authority's WACC % is 4.83%. Thessaloniki Port Authority's ROIC % is 10.34% (calculated using TTM income statement data).
Thessaloniki Port Authority generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Thessaloniki Port Authority 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 %, 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.
Thessaloniki Port Authority ROIC % Related Terms
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Thessaloniki Port Authority (ATH:OLTH) Business Description
Thessaloniki Port Authority SA is a shipping company based in Greece. It manages the port of Thessaloniki and provides ship berthing, anchoring, mooring, loading, unloading and cargo handling and passenger services along with add-on services like water, electricity, telephone connections, The company's operational areas are categorized into four, which are vessels, containers, event halls and parking services. Most of its revenues are obtained from its container and vessel operations catering to industries, shipping agents, container transportation companies, and freight transport companies. The Event halls are another aspect of its service area, wherein the company provides premises to host multipurpose activities.
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