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ESG Emirates Stallions Group PJSC (ADX:ESG) ROC %

: 6.33% (As of Dec. 2023)
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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. ESG Emirates Stallions Group PJSC's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 6.33%.

As of today (2024-02-24), ESG Emirates Stallions Group PJSC's WACC % is 10.14%. ESG Emirates Stallions Group PJSC's ROC % is 4.17% (calculated using TTM income statement data). ESG Emirates Stallions Group PJSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.


ESG Emirates Stallions Group PJSC ROC % Historical Data

The historical data trend for ESG Emirates Stallions Group PJSC's ROC % 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.

* Premium members only.

ESG Emirates Stallions Group PJSC Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROC %
1.79 14.49 15.79 7.44

ESG Emirates Stallions Group PJSC Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23
ROC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.81 14.07 3.79 4.97 6.33

ESG Emirates Stallions Group PJSC ROC % Calculation

ESG Emirates Stallions Group PJSC's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=81.961 * ( 1 - -0.07% )/( (333.306 + 1872.565)/ 2 )
=82.0183727/1102.9355
=7.44 %

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))
=1144.461 - 340.571 - ( 470.584 - max(0, 341.893 - 909.904+470.584))
=333.306

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))
=3060.501 - 564.461 - ( 623.803 - max(0, 629.316 - 1252.791+623.803))
=1872.565

ESG Emirates Stallions Group PJSC's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=107.672 * ( 1 - 0% )/( (1530.333 + 1872.565)/ 2 )
=107.672/1701.449
=6.33 %

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))
=2274.836 - 315.475 - ( 429.028 - max(0, 318.376 - 848.092+429.028))
=1530.333

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))
=3060.501 - 564.461 - ( 623.803 - max(0, 629.316 - 1252.791+623.803))
=1872.565

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


ESG Emirates Stallions Group PJSC  (ADX:ESG) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, ESG Emirates Stallions Group PJSC's WACC % is 10.14%. ESG Emirates Stallions Group PJSC's ROC % is 4.17% (calculated using TTM income statement data). ESG Emirates Stallions Group PJSC 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 %, ROC % 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.


ESG Emirates Stallions Group PJSC ROC % Related Terms

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ESG Emirates Stallions Group PJSC (ADX:ESG) Business Description

Traded in Other Exchanges
N/A
Address
Emirates Stallions Group, The Royal Group Building, PO Box 63811, 5th Floor, Abu Dhabi, ARE
ESG Emirates Stallions Group PJSC main activities are buying, selling, and dividing plots and real estates, management and leasing of real estate and developing real estate, management services of companies and private institutions, performing technical, commercial, and contracting services. The operating segments of company are Contracting & consultancy, Landscaping & Business process/manpower outsourcing.

ESG Emirates Stallions Group PJSC (ADX:ESG) Headlines