Bisalloy Steel Group (ASX:BIS) ROC % : 13.67% (As of Jun. 2024)

View and export this data going back to 2003. Start your Free Trial

What is Bisalloy Steel Group 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 %. Bisalloy Steel Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 13.67%.

As of today (2025-01-18), Bisalloy Steel Group's WACC % is 6.87%. Bisalloy Steel Group's ROC % is 14.98% (calculated using TTM income statement data). Bisalloy Steel Group 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.

Bisalloy Steel Group ROC % Historical Data

The historical data trend for Bisalloy Steel Group'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.

* Premium members only.

Bisalloy Steel Group ROC % Chart

Bisalloy Steel Group Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

Get a 7-Day Free Trial

9.11

9.95

16.87

13.10

15.65

Bisalloy Steel Group Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															15.92	14.24	11.43	15.68	13.67

Bisalloy Steel Group ROC % Calculation

Bisalloy Steel Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	19.115 * ( 1 - 29.65% )	/	( (84.369	+	87.509)	/ 2 )
=	13.4474025	/	85.939
=	15.65 %

where

	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	))
=	112.259	-	25.838	-	( 2.052	-	max(0, 30.229	-	75.771	+	2.052	))
=	84.369

	Invested Capital		(A: Jun. 2024 )
=	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	))
=	118.575	-	24.766	-	( 6.3	-	max(0, 34.278	-	78.509	+	6.3	))
=	87.509

Bisalloy Steel Group's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	18.026 * ( 1 - 29.86% )	/	( (97.448	+	87.509)	/ 2 )
=	12.6434364	/	92.4785
=	13.67 %

where

	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	))
=	117.372	-	19.273	-	( 0.651	-	max(0, 36.865	-	78.593	+	0.651	))
=	97.448

	Invested Capital		(Q: Jun. 2024 )
=	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	))
=	118.575	-	24.766	-	( 6.3	-	max(0, 34.278	-	78.509	+	6.3	))
=	87.509

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

Bisalloy Steel Group (ASX:BIS) 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, Bisalloy Steel Group's WACC % is 6.87%. Bisalloy Steel Group's ROC % is 14.98% (calculated using TTM income statement data). Bisalloy Steel Group 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.

Bisalloy Steel Group ROC % Related Terms

Thank you for viewing the detailed overview of Bisalloy Steel Group's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Bisalloy Steel Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Bisalloy Steel Group Ltd (ASX:BIS) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

18 Resolution Drive, Unanderra, Wollongong, NSW, AUS, 2526

Website

https://www.bisalloy.com.au

Bisalloy Steel Group Ltd is engaged in the processing and sale of quenched and tempered high-tensile, and abrasion-resistant steel plates. The company is organized into geographical operating segments, being Australian Operations is engaged in the distribution of wear-grade and high tensile plates through distributors and directly to original equipment manufacturers in both Australia and Overseas. Its Overseas Operations engage in the distribution of the abrasion-resistant plate as well as other steel plate products. The Overseas Operations also focus on the marketing and distribution of quench and tempered steel plates. The majority of its revenue is derived from Australian Operations.