Future Kid Entertainment and Real Estate Co (KUW:FUTUREKID) ROIC % : -2.03% (As of Dec. 2023)

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What is Future Kid Entertainment and Real Estate Co 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 %. Future Kid Entertainment and Real Estate Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -2.03%.

As of today (2024-05-04), Future Kid Entertainment and Real Estate Co's WACC % is 7.65%. Future Kid Entertainment and Real Estate Co's ROIC % is 3.99% (calculated using TTM income statement data). Future Kid Entertainment and Real Estate Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Future Kid Entertainment and Real Estate Co ROIC % Historical Data

The historical data trend for Future Kid Entertainment and Real Estate Co'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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Future Kid Entertainment and Real Estate Co ROIC % Chart

Future Kid Entertainment and Real Estate Co Annual Data

Trend

Dec10

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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1.13

-15.15

-8.21

5.11

3.84

Future Kid Entertainment and Real Estate Co 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															4.32	2.87	9.55	6.30	-2.03

Competitive Comparison of Future Kid Entertainment and Real Estate Co's ROIC %

For the Leisure subindustry, Future Kid Entertainment and Real Estate Co'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.

Future Kid Entertainment and Real Estate Co's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Future Kid Entertainment and Real Estate Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Future Kid Entertainment and Real Estate Co's ROIC % falls into.

Future Kid Entertainment and Real Estate Co ROIC % Calculation

Future Kid Entertainment and Real Estate Co'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 )
=	1.153 * ( 1 - 4.19% )	/	( (27.177	+	30.392)	/ 2 )
=	1.1046893	/	28.7845
=	3.84 %

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	))
=	25.477	-	0.536	-	( 3.047	-	max(0, 6.423	-	4.187	+	3.047	))
=	27.177

	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	))
=	28.482	-	0.758	-	( 2.73	-	max(0, 6.534	-	3.866	+	2.73	))
=	30.392

Future Kid Entertainment and Real Estate Co'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 )
=	-0.628 * ( 1 - 4.63% )	/	( (28.532	+	30.392)	/ 2 )
=	-0.5989236	/	29.462
=	-2.03 %

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	))
=	28.848	-	2.251	-	( 2.955	-	max(0, 6.268	-	4.333	+	2.955	))
=	28.532

	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	))
=	28.482	-	0.758	-	( 2.73	-	max(0, 6.534	-	3.866	+	2.73	))
=	30.392

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

Future Kid Entertainment and Real Estate Co (KUW:FUTUREKID) 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, Future Kid Entertainment and Real Estate Co's WACC % is 7.65%. Future Kid Entertainment and Real Estate Co's ROIC % is 3.99% (calculated using TTM income statement data).

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.

Future Kid Entertainment and Real Estate Co ROIC % Related Terms

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Future Kid Entertainment and Real Estate Co (KUW:FUTUREKID) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Future Kid Entertainment and Real Estate Co (KUW:FUTUREKID) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Free Zone Area, Futur Ara, Block D20, P.O. Box 4277, Al-Safat, KWT, 13043

Website

https://www.futurekid.com.kw

Future Kid Entertainment and Real Estate Co operates and manages family entertainment centers in Kuwait. It provides recreational services for kids and families. It also operates entertainment complexes which include facilities like games & aqua parks. It also engages in the acquisition, development, and sale of real estate and lands. It derives revenue from customer charges and game cards used for games available in different branches.

Future Kid Entertainment and Real Estate Co (KUW:FUTUREKID) Headlines

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