Top Shelf International Holdings (ASX:TSI) ROIC % : -16.84% (As of Dec. 2023)

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What is Top Shelf International Holdings 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 %. Top Shelf International Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -16.84%.

As of today (2024-04-29), Top Shelf International Holdings's WACC % is 12.95%. Top Shelf International Holdings's ROIC % is -36.48% (calculated using TTM income statement data). Top Shelf International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Top Shelf International Holdings ROIC % Historical Data

The historical data trend for Top Shelf International Holdings'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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Top Shelf International Holdings ROIC % Chart

Top Shelf International Holdings Annual Data

Trend

Jun20

Jun21

Jun22

Jun23

ROIC %

-19.02

-27.70

-47.88

Top Shelf International Holdings Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial			-29.47	-25.44	-43.88	-55.41	-16.84

Competitive Comparison of Top Shelf International Holdings's ROIC %

For the Beverages - Brewers subindustry, Top Shelf International Holdings'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.

Top Shelf International Holdings's ROIC % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, Top Shelf International Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Top Shelf International Holdings's ROIC % falls into.

Top Shelf International Holdings ROIC % Calculation

Top Shelf International Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROIC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-27.796 * ( 1 - -42.7% )	/	( (72.612	+	93.06)	/ 2 )
=	-39.664892	/	82.836
=	-47.88 %

where

	Invested Capital		(A: Jun. 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	))
=	105.805	-	13.064	-	( 20.129	-	max(0, 14.95	-	39.791	+	20.129	))
=	72.612

	Invested Capital		(A: Jun. 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	))
=	79.446	-	14.016	-	( 2.855	-	max(0, 48.161	-	20.531	+	2.855	))
=	93.06

Top Shelf International Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-14.522 * ( 1 - -2.31% )	/	( (93.06	+	83.431)	/ 2 )
=	-14.8574582	/	88.2455
=	-16.84 %

where

	Invested Capital		(Q: Jun. 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	))
=	79.446	-	14.016	-	( 2.855	-	max(0, 48.161	-	20.531	+	2.855	))
=	93.06

	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	))
=	84.645	-	10.937	-	( 2.786	-	max(0, 35.736	-	26.013	+	2.786	))
=	83.431

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Top Shelf International Holdings (ASX:TSI) 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, Top Shelf International Holdings's WACC % is 12.95%. Top Shelf International Holdings's ROIC % is -36.48% (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.

Top Shelf International Holdings ROIC % Related Terms

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Top Shelf International Holdings (ASX:TSI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Top Shelf International Holdings Ltd (ASX:TSI) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

16-18 National Boulevard, Campbellfield, VIC, AUS, 3061

Website

https://www.topshelfgroup.com.au

Top Shelf International Holdings Ltd is a beverages manufacturer and distributor in Australia. The company's beverage manufacturing capability includes spirit distillation, maturation, mixing, carbonation along with canning and glass and PET bottling lines for supply into domestic and international markets of non-alcoholic and alcoholic beverages.