Fortune Parts Industry PCL (BKK:FPI) ROIC % : 16.89% (As of Dec. 2023)

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What is Fortune Parts Industry PCL ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Fortune Parts Industry PCL's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 16.89%.

As of today (2024-05-21), Fortune Parts Industry PCL's WACC % is 12.88%. Fortune Parts Industry PCL's ROIC % is 15.67% (calculated using TTM income statement data). Fortune Parts Industry PCL 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.

Fortune Parts Industry PCL ROIC % Historical Data

The historical data trend for Fortune Parts Industry PCL's ROIC % 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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Fortune Parts Industry PCL ROIC % Chart

Fortune Parts Industry PCL Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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9.35

6.64

13.74

18.10

15.88

Fortune Parts Industry PCL Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															19.62	10.95	17.73	16.64	16.89

Competitive Comparison of Fortune Parts Industry PCL's ROIC %

For the Auto Parts subindustry, Fortune Parts Industry PCL'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.

Fortune Parts Industry PCL's ROIC % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Fortune Parts Industry PCL's ROIC % distribution charts can be found below:

* The bar in red indicates where Fortune Parts Industry PCL's ROIC % falls into.

Fortune Parts Industry PCL ROIC % Calculation

Fortune Parts Industry PCL's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	572.105 * ( 1 - 20.91% )	/	( (2752.725	+	2945.861)	/ 2 )
=	452.4778445	/	2849.293
=	15.88 %

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	))
=	3719.2	-	496.698	-	( 469.777	-	max(0, 1509.895	-	2467.862	+	469.777	))
=	2752.725

	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	))
=	3547.897	-	380.63	-	( 221.406	-	max(0, 1118.177	-	2190.274	+	221.406	))
=	2945.861

Fortune Parts Industry PCL's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	640.096 * ( 1 - 21.17% )	/	( (3029.697	+	2945.861)	/ 2 )
=	504.5876768	/	2987.779
=	16.89 %

where

	Invested Capital		(Q: Sep. 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	))
=	3884.354	-	379.858	-	( 474.799	-	max(0, 1563.714	-	2526.875	+	474.799	))
=	3029.697

	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	))
=	3547.897	-	380.63	-	( 221.406	-	max(0, 1118.177	-	2190.274	+	221.406	))
=	2945.861

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Fortune Parts Industry PCL (BKK:FPI) 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, Fortune Parts Industry PCL's WACC % is 12.88%. Fortune Parts Industry PCL's ROIC % is 15.67% (calculated using TTM income statement data). Fortune Parts Industry PCL 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. Fortune Parts Industry PCL 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.

Fortune Parts Industry PCL ROIC % Related Terms

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Fortune Parts Industry PCL (BKK:FPI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Fortune Parts Industry PCL (BKK:FPI) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Nimitmai Road, 11/22 Moo 20, Lamlukka, Pathumthani, THA, 12150

Website

https://www.fpiautoparts.com

Fortune Parts Industry PCL is engaged in the manufacture and distribution of automotive replacement parts, dipping, and painting services based in Thailand. It has three operating segments Domestic sales, which manufacture and domestic distribution of automotive parts and equipment; Export sales, which manufacture and overseas distribution of automotive parts and equipment; and Services from dipping and painting. Some of the products offered by the company are Plastic injection parts, Lamp and mirrors, Coolants, Engine and Break parts, among others. Export sales generate the majority of the revenue. Geographically, it makes sales in Thailand, Saudi Arabia, and other countries.