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Top Shelf International Holdings (ASX:TSI) ROC % : -20.57% (As of Jun. 2024)


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What is Top Shelf International 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 %. Top Shelf International Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -20.57%.

As of today (2025-03-19), Top Shelf International Holdings's WACC % is 12.94%. Top Shelf International Holdings's ROC % is -18.48% (calculated using TTM income statement data). Top Shelf International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Top Shelf International Holdings ROC % Historical Data

The historical data trend for Top Shelf International 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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Top Shelf International Holdings ROC % Chart

Top Shelf International Holdings Annual Data
Trend Jun20 Jun21 Jun22 Jun23 Jun24
ROC %
- -19.02 -27.70 -47.88 -18.14

Top Shelf International Holdings Semi-Annual Data
Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial -25.44 -43.88 -55.41 -16.84 -20.57

Top Shelf International Holdings ROC % Calculation

Top Shelf International Holdings'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 )
=-16.047 * ( 1 - 0.11% )/( (93.06 + 83.649)/ 2 )
=-16.0293483/88.3545
=-18.14 %

where

Top Shelf International Holdings'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 )
=-17.572 * ( 1 - 2.21% )/( (83.431 + 83.649)/ 2 )
=-17.1836588/83.54
=-20.57 %

where

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


Top Shelf International Holdings  (ASX:TSI) 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, Top Shelf International Holdings's WACC % is 12.94%. Top Shelf International Holdings's ROC % is -18.48% (calculated using TTM income statement data). Top Shelf International 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.


Top Shelf International Holdings ROC % Related Terms

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Top Shelf International Holdings Business Description

Traded in Other Exchanges
N/A
Address
16-18 National Boulevard, Campbellfield, VIC, AUS, 3061
Top Shelf International Holdings Ltd is a beverages manufacturer and distributor in Australia. The company's beverage manufacturing capability includes spirit distillation, maturation, mixing, carbonation along with canning and glass and PET bottling lines for supply into domestic and international markets of non-alcoholic and alcoholic beverages.

Top Shelf International Holdings Headlines

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