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Coca-Cola FemsaB de CV ROIC %

: 8.49% (As of Jun. 2022)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Coca-Cola FemsaB de CV's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2022 was 8.49%.

As of today (2022-08-12), Coca-Cola FemsaB de CV's WACC % is 11.67%. Coca-Cola FemsaB de CV's ROIC % is 9.31% (calculated using TTM income statement data). Coca-Cola FemsaB de CV earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Coca-Cola FemsaB de CV ROIC % Historical Data

The historical data trend for Coca-Cola FemsaB de CV'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.

* Premium members only.

Coca-Cola FemsaB de CV Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.94 7.34 8.45 8.04 9.55

Coca-Cola FemsaB de CV Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROIC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.27 7.90 12.01 9.00 8.49

Competitive Comparison

For the Beverages - Non-Alcoholic subindustry, Coca-Cola FemsaB de CV'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.

   

Coca-Cola FemsaB de CV ROIC % Distribution

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Coca-Cola FemsaB de CV's ROIC % distribution charts can be found below:

* The bar in red indicates where Coca-Cola FemsaB de CV's ROIC % falls into.



Coca-Cola FemsaB de CV ROIC % Calculation

Coca-Cola FemsaB de CV's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:

ROIC % (A: Dec. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2020 ) + Invested Capital (A: Dec. 2021 ))/ count )
=1287.3936729428 * ( 1 - 28.92% )/( (9876.2048856736 + 9287.6803975915)/ 2 )
=915.07942272771/9581.9426416326
=9.55 %

where

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))
=13179.395202501 - 1820.5045991062 - ( 2179.1647461975 - max(0, 2146.5000701389 - 3629.18578786+2179.1647461975))
=9876.2048856736

Invested Capital(A: Dec. 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))
=12977.492115072 - 2058.2051036987 - ( 2257.8610341202 - max(0, 2208.7833317404 - 3840.3899455223+2257.8610341202))
=9287.6803975915

Coca-Cola FemsaB de CV's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2022 is calculated as:

ROIC % (Q: Jun. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2022 ) + Invested Capital (Q: Jun. 2022 ))/ count )
=1511.8365225561 * ( 1 - 34.94% )/( (11520.219621892 + 11661.760810791)/ 2 )
=983.600841575/11590.990216341
=8.49 %

where

Invested Capital(Q: Mar. 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))
=13816.855201417 - 1162.1658456806 - ( 2406.6412258328 - max(0, 2953.4569030977 - 4087.9266369424+2406.6412258328))
=11520.219621892

Invested Capital(Q: 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))
=13807.027451137 - 1276.3554405025 - ( 2277.4498878067 - max(0, 3136.0163117626 - 4004.9275116066+2277.4498878067))
=11661.760810791

Note: The Operating Income data used here is four times the quarterly (Jun. 2022) 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.


Coca-Cola FemsaB de CV  (NYSE:KOF) 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, Coca-Cola FemsaB de CV's WACC % is 11.67%. Coca-Cola FemsaB de CV's ROIC % is 9.31% (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.


Coca-Cola FemsaB de CV ROIC % Related Terms

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Coca-Cola FemsaB de CV Business Description

Coca-Cola FemsaB de CV logo
Address
Calle Mario Pani Number 100, Santa Fe Cuajimalpa, Cuajimalpa de Morelos, Ciudad de Mexico, DF, MEX, 05348
Coca-Cola Femsa, a subsidiary of Femsa, is the largest franchise bottler of the Coca-Cola Co. by volume. The firm primarily purchases beverage concentrates from TCCC, which it processes and packages, and then distributes the finished trademark beverages to on- and off-premises retailers. While Mexico and Brazil are Coca-Cola Femsa's most important markets, generating roughly 80% of volume, the firm operates in other Central and South American countries, including Panama, Guatemala, Uruguay, and Argentina. The equity value of the firm is divvied up between Femsa (which owns series A shares), TCCC (series D), and the public, holding 47%, 28%, and 25% economic interests, respectively. Series A and D shares control 89% of the voting rights and are not publicly listed.

Coca-Cola FemsaB de CV Headlines

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