ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Kingmaker Footwear Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was -3.63%.
As of today (2024-04-27), Kingmaker Footwear Holdings's WACC % is 6.79%. Kingmaker Footwear Holdings's ROIC % is -3.11% (calculated using TTM income statement data).
Kingmaker Footwear Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Kingmaker Footwear Holdings ROIC % Historical 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.
Competitive Comparison of Kingmaker Footwear Holdings's ROIC %
For the Footwear & Accessories subindustry, Kingmaker Footwear 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.
Kingmaker Footwear Holdings's ROIC % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Kingmaker Footwear Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Kingmaker Footwear Holdings's ROIC % falls into.
Kingmaker Footwear Holdings ROIC % Calculation
Kingmaker Footwear Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Sep. 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.
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, Kingmaker Footwear Holdings's WACC % is 6.79%. Kingmaker Footwear Holdings's ROIC % is -3.11% (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.
Kingmaker Footwear Holdings ROIC % Related Terms
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Kingmaker Footwear Holdings (Kingmaker Footwear Holdings) Business Description
Kingmaker Footwear Holdings Ltd is a Hong Kong-based company involved in the footwear business. The company focuses on the production of athletic, lifestyle shoes, rugged footwear, and children's shoes. The firm has two operating segments, Manufacturing and sale of footwear products; and Property Investment. It derives a majority of its revenue from the Manufacturing and sale of footwear products. Geographically, the group has a business presence in the United States Asia, Europe, and Other countries, the firm generates the majority of its revenue from the United States.
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