Penrice Soda Holdings (ASX:PSH) ROC % : -15.79% (As of Dec. 2013)

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What is Penrice Soda Holdings 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 %. Penrice Soda Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2013 was -15.79%.

As of today (2024-05-16), Penrice Soda Holdings's WACC % is 0.00%. Penrice Soda Holdings's ROC % is 0.00% (calculated using TTM income statement data). Penrice Soda Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Penrice Soda Holdings ROC % Historical Data

The historical data trend for Penrice Soda Holdings'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.

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Penrice Soda Holdings ROC % Chart

Penrice Soda Holdings Annual Data

Trend

Jun05

Jun06

Jun07

Jun08

Jun09

Jun10

Jun11

Jun12

Jun13

ROC %

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9.65

7.42

-12.35

-40.65

-47.48

Penrice Soda Holdings Semi-Annual Data
	Dec05	Jun06	Dec06	Jun07	Dec07	Jun08	Dec08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13
ROC %	Get a 7-Day Free Trial												-30.96	-49.52	-56.16	-44.18	-15.79

Penrice Soda Holdings ROC % Calculation

Penrice Soda Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2013 is calculated as:

	ROC % (A: Jun. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2012 )	+	Invested Capital (A: Jun. 2013 ))	/ count )
=	-48.338 * ( 1 - 1.16% )	/	( (106.895	+	94.371)	/ 2 )
=	-47.7772792	/	100.633
=	-47.48 %

where

	Invested Capital		(A: Jun. 2012 )
=	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	))
=	139.487	-	29.615	-	( 2.977	-	max(0, 44.106	-	48.268	+	2.977	))
=	106.895

	Invested Capital		(A: Jun. 2013 )
=	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	))
=	117.648	-	32.621	-	( 5.773	-	max(0, 52.025	-	42.681	+	5.773	))
=	94.371

Penrice Soda Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2013 is calculated as:

	ROC % (Q: Dec. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2013 )	+	Invested Capital (Q: Dec. 2013 ))	/ count )
=	-17.074 * ( 1 - -0.24% )	/	( (94.371	+	122.365)	/ 2 )
=	-17.1149776	/	108.368
=	-15.79 %

where

	Invested Capital		(Q: Jun. 2013 )
=	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	))
=	117.648	-	32.621	-	( 5.773	-	max(0, 52.025	-	42.681	+	5.773	))
=	94.371

	Invested Capital		(Q: Dec. 2013 )
=	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	))
=	110.019	-	35.3	-	( 0.207	-	max(0, 81.116	-	33.47	+	0.207	))
=	122.365

Note: The Operating Income data used here is two times the semi-annual (Dec. 2013) data.

Penrice Soda Holdings (ASX:PSH) 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, Penrice Soda Holdings's WACC % is 0.00%. Penrice Soda Holdings's ROC % is 0.00% (calculated using TTM income statement data). Penrice Soda Holdings 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 %, 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.

Penrice Soda Holdings ROC % Related Terms

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Penrice Soda Holdings (ASX:PSH) Business Description

Industry

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Traded in Other Exchanges

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Address

Website

http://www.penrice.com.au

Penrice Soda Holdings Limited (PSH) is a manufacturer of soda ash and sodium bicarbonate in Australia. Penrice operates the soda ash and sodium bicarbonate plant located at Osborne, close to Adelaide and also operates the marble and limestone mine in SA at Angaston in the Barossa Valley.