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# Bunge ROC %

: 9.93% (As of Sep. 2021)
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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 %. Bunge's annualized return on capital (ROC %) for the quarter that ended in Sep. 2021 was 9.93%.

As of today (2021-11-28), Bunge's WACC % is 4.20%. Bunge's ROC % is 10.56% (calculated using TTM income statement data). Bunge generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

## Bunge ROC % Historical Data

The historical data trend for Bunge'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.

Bunge Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROC %
6.35 1.76 3.56 -6.02 7.01

 Bunge Quarterly Data Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 ROC % 5.52 10.13 14.82 6.55 9.93

## Bunge ROC % Calculation

Bunge's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

 ROC % (A: Dec. 2020 ) = NOPAT / Average Invested Capital = Operating Income * ( 1 - Tax Rate % ) / ( (Invested Capital (A: Dec. 2019 ) + Invested Capital (A: Dec. 2020 )) / count ) = 1427 * ( 1 - 17.55% ) / ( (14053 + 19520) / 2 ) = 1176.5615 / 16786.5 = 7.01 %

where

 Invested Capital (A: Dec. 2019 ) = 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 )) = 18317 - 3551 - ( 713 - max(0, 6595 - 10248 + 713 )) = 14053

 Invested Capital (A: Dec. 2020 ) = 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 )) = 23655 - 3437 - ( 698 - max(0, 10985 - 16181 + 698 )) = 19520

Bunge's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2021 is calculated as:

 ROC % (Q: Sep. 2021 ) = NOPAT / Average Invested Capital = Operating Income * ( 1 - Tax Rate % ) / ( (Invested Capital (Q: Jun. 2021 ) + Invested Capital (Q: Sep. 2021 )) / count ) = 2140 * ( 1 - 12.42% ) / ( (19982 + 17749) / 2 ) = 1874.212 / 18865.5 = 9.93 %

where

 Invested Capital (Q: Jun. 2021 ) = 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 )) = 25085 - 4202 - ( 901 - max(0, 10321 - 17555 + 901 )) = 19982

 Invested Capital (Q: Sep. 2021 ) = 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 )) = 24109 - 4876 - ( 1484 - max(0, 9759 - 16534 + 1484 )) = 17749

Note: The Operating Income data used here is four times the quarterly (Sep. 2021) 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.

Bunge  (NYSE:BG) 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, Bunge's WACC % is 4.20%. Bunge's ROC % is 10.56% (calculated using TTM income statement data). Bunge generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

## Bunge ROC % Related Terms

Thank you for viewing the detailed overview of Bunge's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Industry
Consumer Defensive NAICS : 311225 SIC : 2079
1391 Timberlake Manor Parkway, St. Louis, MO, USA, 63017
Website
Founded in 1818, Bunge is a global agribusiness and food company with operations along the farm-to-consumer food chain. The agribusiness segment generates roughly two thirds of profits and includes the largest oilseed processing capacity globally. The company is a leading oilseed processor and seller of packaged vegetable oils and other food and ingredients products.
Executives
 Wagner Robert officer: Chief Risk Officer 1391 TIMBERLAKE MANOR PARKWAY CHESTERFIELD MT 63017 Browner Carol M. director C/O BUNGE LIMITED 50 MAIN STREET, 6TH FLOOR WHITE PLAINS NY 10606 Mauger Pierre officer: Chief Transformation Officer C/O BUNGE LIMITED, 50 MAIN STREET 6TH FLOOR WHITE PLAINS NY 10606 Winship Henry Ward Iv director PO BOX 8614 RANCHO SANTA FE CA 92067 Padilla Raul officer: President, Global Operations C/O BUNGE LTD 50 MAIN STREET WHITE PLAINS NY 10606 Borg Deborah officer: EVP & Chief HR, Comms Officer C/O BUNGE LIMITED, 50 MAIN STREET 8TH FLOOR WHITE PLAINS NY 10606 Dimopoulos Christos officer: Pres., Global Supply Chains C/O BUNGE LIMITED 50 MAIN STREET, 6TH FLOOR WHITE PLAINS NY 10606 Neppl John W officer: EVP, Chief Financial Officer 1811 AKSARBEN DRIVE OMAHA NE 68106 Zachman Brian officer: President Global Risk Mgmnt C/O BUNGE LIMITED 50 MAIN STREET, 6TH FLOOR WHITE PLAINS NY 10606 Buettner Aaron officer: SVP, Bunge Loders Croklaan C/O BUNGE LIMITED 50 MAIN STREET, 6TH FLOOR WHITE PLAINS NY 10606 Podwika Joseph officer: EVP and Chief Legal Officer C/O BUNGE LIMITED 50 MAIN STREET, 6TH FLOOR WHITE PLAINS NY 10606 Simmons Jerry Matthews Jr officer: Controller, Principal Actg Off TWO N. NINTH STREET ALLENTOWN PA 18101 Bair Sheila Colleen director 6903 ROCKLEDGE DRIVE, SUITE 1500 BETHESDA MD 20817 Fribourg Paul J director 667 MADISON AVE NEW YORK NY 10021 Fyrwald J Erik director LILLY CORPORATE CENTER INDIANAPOLIS IN 46285

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