Rogers Sugar (Rogers Sugar) ROC % : 9.35% (As of Dec. 2023)

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What is Rogers Sugar 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 %. Rogers Sugar's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 9.35%.

As of today (2024-04-28), Rogers Sugar's WACC % is 5.33%. Rogers Sugar's ROC % is 8.66% (calculated using TTM income statement data). Rogers Sugar 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.

Rogers Sugar ROC % Historical Data

The historical data trend for Rogers Sugar'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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Rogers Sugar ROC % Chart

Rogers Sugar Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROC %

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-13.39

6.66

8.46

31.29

8.65

Rogers Sugar Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial															9.75	7.79	9.16	8.21	9.35

Rogers Sugar ROC % Calculation

Rogers Sugar's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2023 is calculated as:

	ROC % (A: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2022 )	+	Invested Capital (A: Sep. 2023 ))	/ count )
=	70.182 * ( 1 - 26.42% )	/	( (586.68	+	607.082)	/ 2 )
=	51.6399156	/	596.881
=	8.65 %

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	))
=	703.168	-	116.375	-	( 0.113	-	max(0, 162.36	-	292.833	+	0.113	))
=	586.68

	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	))
=	710.148	-	103.032	-	( 0.034	-	max(0, 169.48	-	296.931	+	0.034	))
=	607.082

Rogers Sugar'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 )
=	77.848 * ( 1 - 27.87% )	/	( (607.082	+	593.431)	/ 2 )
=	56.1517624	/	600.2565
=	9.35 %

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	))
=	710.148	-	103.032	-	( 0.034	-	max(0, 169.48	-	296.931	+	0.034	))
=	607.082

	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	))
=	696.725	-	98.945	-	( 4.349	-	max(0, 152.597	-	277.14	+	4.349	))
=	593.431

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Rogers Sugar (OTCPK:RSGUF) 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, Rogers Sugar's WACC % is 5.33%. Rogers Sugar's ROC % is 8.66% (calculated using TTM income statement data). Rogers Sugar 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.

Rogers Sugar ROC % Related Terms

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Rogers Sugar (Rogers Sugar) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Rogers Sugar Inc (OTCPK:RSGUF) » Definitions » ROC %

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16R:Germany RSI:Canada

Address

123 Rogers Street, Vancouver, BC, CAN, V6B 3V2

Website

https://www.lanticrogers.com

Rogers Sugar Inc is a Canada-based sugar-producing company. The company along with its subsidiaries is principally engaged in refining, packaging, and marketing sugar products. The products offered by the company include Brown sugar, Yellow sugar, Icing sugar and other related sugar products. It operates in the following reportable segments: Sugar and Maple products, of which the majority of the revenue comes from sugar products. Its geographical segments include Canada, which is the key revenue generator; the United States; Europe; and others.