Avgol Industries 1953 (XTAE:AVGL) ROIC % : 1.40% (As of Mar. 2024)

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What is Avgol Industries 1953 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 %. Avgol Industries 1953's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 1.40%.

As of today (2024-05-21), Avgol Industries 1953's WACC % is 6.32%. Avgol Industries 1953's ROIC % is 2.71% (calculated using TTM income statement data). Avgol Industries 1953 earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Avgol Industries 1953 ROIC % Historical Data

The historical data trend for Avgol Industries 1953'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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Avgol Industries 1953 ROIC % Chart

Avgol Industries 1953 Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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7.62

12.37

4.24

8.19

2.78

Avgol Industries 1953 Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROIC %	Get a 7-Day Free Trial															2.29	2.58	5.40	1.67	1.40

Competitive Comparison of Avgol Industries 1953's ROIC %

For the Textile Manufacturing subindustry, Avgol Industries 1953'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.

Avgol Industries 1953's ROIC % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Avgol Industries 1953's ROIC % distribution charts can be found below:

* The bar in red indicates where Avgol Industries 1953's ROIC % falls into.

Avgol Industries 1953 ROIC % Calculation

Avgol Industries 1953'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 )
=	61.305 * ( 1 - 33.19% )	/	( (1488.832	+	1454.223)	/ 2 )
=	40.9578705	/	1471.5275
=	2.78 %

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	))
=	1707.459	-	135.374	-	( 225.535	-	max(0, 446.172	-	529.425	+	225.535	))
=	1488.832

	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	))
=	1619.303	-	130.189	-	( 182.611	-	max(0, 419.12	-	454.011	+	182.611	))
=	1454.223

Avgol Industries 1953'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: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	52.08 * ( 1 - 61.14% )	/	( (1454.223	+	1433.084)	/ 2 )
=	20.238288	/	1443.6535
=	1.40 %

where

	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	))
=	1619.303	-	130.189	-	( 182.611	-	max(0, 419.12	-	454.011	+	182.611	))
=	1454.223

	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	))
=	1632.371	-	190.967	-	( 168.102	-	max(0, 440.899	-	449.219	+	168.102	))
=	1433.084

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Avgol Industries 1953 (XTAE:AVGL) 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, Avgol Industries 1953's WACC % is 6.32%. Avgol Industries 1953's ROIC % is 2.71% (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.

Avgol Industries 1953 ROIC % Related Terms

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Avgol Industries 1953 (XTAE:AVGL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Avgol Industries 1953 Ltd (XTAE:AVGL) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

20 Lincoln Street, 29th floor, Rubinstein House, Tel Aviv, ISR, 67134

Website

http://www.avgol.com

Avgol Industries 1953 Ltd manufactures non-woven fabric solutions. The company focuses on the hygiene market delivering non-woven fabric innovation to the baby diaper, adult incontinence and feminine hygiene product manufacturers and brands, as well as number of medical and industrial applications. It serves in approximately 30 countries worldwide, with manufacturing sites in Israel, United States, China and Russia.

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