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Origin Enterprises ROIC %

: 1.55% (As of Jan. 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 %. Origin Enterprises's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2022 was 1.55%.

As of today (2022-05-16), Origin Enterprises's WACC % is 4.94%. Origin Enterprises's ROIC % is 8.80% (calculated using TTM income statement data). Origin Enterprises 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.


Origin Enterprises ROIC % Historical Data

The historical data trend for Origin Enterprises'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.

Origin Enterprises Annual Data
Trend Jul12 Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.54 12.00 11.51 5.45 7.65

Origin Enterprises Semi-Annual Data
Jul12 Jan13 Jul13 Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22
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 -1.84 11.81 -0.86 15.36 1.55

Competitive Comparison

For the Farm Products subindustry, Origin Enterprises'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.

   

Origin Enterprises ROIC % Distribution

For the Consumer Packaged Goods industry and Consumer Defensive sector, Origin Enterprises's ROIC % distribution charts can be found below:

* The bar in red indicates where Origin Enterprises's ROIC % falls into.



Origin Enterprises ROIC % Calculation

Origin Enterprises's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jul. 2021 is calculated as:

ROIC % (A: Jul. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jul. 2020 ) + Invested Capital (A: Jul. 2021 ))/ count )
=61.973995271868 * ( 1 - 20.05% )/( (608.91264367816 + 687.14184397163)/ 2 )
=49.548209219858/648.0272438249
=7.65 %

where

Invested Capital(A: Jul. 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))
=1416.5195402299 - 624.7632183908 - ( 198.05632183908 - max(0, 732.67471264368 - 915.5183908046+198.05632183908))
=608.91264367816

Invested Capital(A: Jul. 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))
=1534.0295508274 - 694.86406619385 - ( 199.36170212766 - max(0, 843.1524822695 - 995.17612293144+199.36170212766))
=687.14184397163

Origin Enterprises's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jan. 2022 is calculated as:

ROIC % (Q: Jan. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2021 ) + Invested Capital (Q: Jan. 2022 ))/ count )
=12.918552036199 * ( 1 - 23.24% )/( (687.14184397163 + 590.82352941176)/ 2 )
=9.9162805429864/638.9826866917
=1.55 %

where

Invested Capital(Q: Jul. 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))
=1534.0295508274 - 694.86406619385 - ( 199.36170212766 - max(0, 843.1524822695 - 995.17612293144+199.36170212766))
=687.14184397163

Invested Capital(Q: Jan. 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))
=1510.6266968326 - 757.72398190045 - ( 162.07918552036 - max(0, 789.72171945701 - 978.40497737557+162.07918552036))
=590.82352941176

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


Origin Enterprises  (OTCPK:ORENF) 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, Origin Enterprises's WACC % is 4.94%. Origin Enterprises's ROIC % is 8.80% (calculated using TTM income statement data). Origin Enterprises 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. Origin Enterprises earns returns that do not match up to its cost of capital. It will destroy value as it grows.


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.


Origin Enterprises ROIC % Related Terms

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Origin Enterprises Business Description

Origin Enterprises logo
Industry
Traded in Other Exchanges
Address
4-6 Riverwalk, Citywest Business Campus, Dublin, IRL, 24
Origin Enterprises PLC is an agri-service business with operations throughout Europe. It provides technologies and strategic products to support food production systems for primary food producers. The company acts as an advisor for varietal selection, nutrition, crop protection, and other techniques to improve crop performance. Fertilizers, animal feed, seeds, and other agricultural supplements are sold to enhance farming productivity. It delivers products to farms from local distribution centers, and agronomists study the timing of applications to achieve the best results for customers. Farm visitations happen throughout each year, and soil and tissue analysis is conducted to either stop deficiencies or prevent future occurrences.

Origin Enterprises Headlines

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