PNE Industries (SGX:BDA) ROIC % : 0.99% (As of Mar. 2024)

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What is PNE Industries 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 %. PNE Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 0.99%.

As of today (2024-06-06), PNE Industries's WACC % is 6.21%. PNE Industries's ROIC % is -0.05% (calculated using TTM income statement data). PNE Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PNE Industries ROIC % Historical Data

The historical data trend for PNE Industries'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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PNE Industries ROIC % Chart

PNE Industries Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROIC %

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14.62

14.02

-2.96

6.16

-1.05

PNE Industries Semi-Annual Data
	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
ROIC %	Get a 7-Day Free Trial															9.28	2.38	-1.02	-2.17	0.99

Competitive Comparison of PNE Industries's ROIC %

For the Electronic Components subindustry, PNE Industries'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.

PNE Industries's ROIC % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, PNE Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where PNE Industries's ROIC % falls into.

PNE Industries ROIC % Calculation

PNE Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Sep. 2023 is calculated as:

	ROIC % (A: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2022 )	+	Invested Capital (A: Sep. 2023 ))	/ count )
=	-0.519 * ( 1 - 1.57% )	/	( (50.374	+	46.732)	/ 2 )
=	-0.5108517	/	48.553
=	-1.05 %

where

	Invested Capital		(A: Sep. 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	))
=	89.713	-	8.383	-	( 30.956	-	max(0, 12.384	-	78.285	+	30.956	))
=	50.374

	Invested Capital		(A: 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	))
=	82.469	-	7.689	-	( 28.048	-	max(0, 11.952	-	73.212	+	28.048	))
=	46.732

PNE Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROIC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	0.756 * ( 1 - 43.2% )	/	( (46.732	+	40.086)	/ 2 )
=	0.429408	/	43.409
=	0.99 %

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	))
=	82.469	-	7.689	-	( 28.048	-	max(0, 11.952	-	73.212	+	28.048	))
=	46.732

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	78.831	-	10.017	-	( 28.728	-	max(0, 10.69	-	69.809	+	28.728	))
=	40.086

Note: The Operating Income data used here is two times the semi-annual (Mar. 2024) data.

PNE Industries (SGX:BDA) 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, PNE Industries's WACC % is 6.21%. PNE Industries's ROIC % is -0.05% (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.

PNE Industries ROIC % Related Terms

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PNE Industries (SGX:BDA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » PNE Industries Ltd (SGX:BDA) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

996 Bendemeer Road, No. 07-06, Singapore, SGP, 339944

Website

https://www.pne.com.sg

PNE Industries Ltd is an investment holding company. Its business operates in two segments. The Contract Manufacturing segment includes the manufacturing of electronic controllers and other electrical and electronic products. The Trading segment manufacture and trading of emergency lighting equipment and related products. The Contract Manufacturing segment generates maximum revenue for the company. Geographically the company exports its products to the Romania, Netherlands, Singapore, Europe, the People's Republic of China, Malaysia, and other regions.

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