PT Chandra Asri Pacific Tbk (ISX:TPIA) ROC % : -2.95% (As of Mar. 2024)

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What is PT Chandra Asri Pacific Tbk ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. PT Chandra Asri Pacific Tbk's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -2.95%.

As of today (2024-05-15), PT Chandra Asri Pacific Tbk's WACC % is 9.56%. PT Chandra Asri Pacific Tbk's ROC % is -1.34% (calculated using TTM income statement data). PT Chandra Asri Pacific Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PT Chandra Asri Pacific Tbk ROC % Historical Data

The historical data trend for PT Chandra Asri Pacific Tbk'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.

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PT Chandra Asri Pacific Tbk ROC % Chart

PT Chandra Asri Pacific Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.58

6.74

8.67

-4.09

-0.56

PT Chandra Asri Pacific Tbk Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															0.98	-2.90	-1.65	-	-2.95

PT Chandra Asri Pacific Tbk ROC % Calculation

PT Chandra Asri Pacific Tbk'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 )
=	-429720.801 * ( 1 - 42.18% )	/	( (44142069.918	+	44958076.208)	/ 2 )
=	-248464.5671382	/	44550073.063
=	-0.56 %

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	))
=	77551861.215	-	7078263.359	-	( 27321685.043	-	max(0, 9559468.732	-	35890996.67	+	27321685.043	))
=	44142069.918

	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	))
=	86552351.941	-	10452459.39	-	( 32183259.157	-	max(0, 12599830.116	-	43741646.459	+	32183259.157	))
=	44958076.208

PT Chandra Asri Pacific Tbk's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-1809097.596 * ( 1 - 22% )	/	( (44958076.208	+	50617718.834)	/ 2 )
=	-1411096.12488	/	47787897.521
=	-2.95 %

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	))
=	86552351.941	-	10452459.39	-	( 32183259.157	-	max(0, 12599830.116	-	43741646.459	+	32183259.157	))
=	44958076.208

	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	))
=	82822298.309	-	4937372.529	-	( 27267206.946	-	max(0, 9278207.798	-	39094680.403	+	27267206.946	))
=	50617718.834

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

PT Chandra Asri Pacific Tbk (ISX:TPIA) 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, PT Chandra Asri Pacific Tbk's WACC % is 9.56%. PT Chandra Asri Pacific Tbk's ROC % is -1.34% (calculated using TTM income statement data). PT Chandra Asri Pacific Tbk 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.

PT Chandra Asri Pacific Tbk ROC % Related Terms

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PT Chandra Asri Pacific Tbk (ISX:TPIA) Business Description

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PTPIF:USA PTCAY:USA

Address

Jalan Let. Jend. S. Parman Kav. 62 - 63, Wisma Barito Pacific Tower A, 7th Floor, Jakarta, IDN, 11410

Website

https://www.chandra-asri.com

PT Chandra Asri Petrochemical Tbk produces petrochemicals. Its products are olefins, polyolefins, styrene monomer, butadiene, and its byproducts. The company operates through Olefin; Polyolefin; Styrene monomer; Butadiene; Methyl Tertiary Butyl Ether (MTBE) and Butene-1 and Tanks and jetty rental. It generates maximum revenue from the polyolefins segment. The Polyolefins segment comprises the manufacturing of polyethylene and polypropylene petrochemicals.