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NAT Absolute Technologies PCL (BKK:NAT) ROC % : 54.89% (As of Sep. 2024)


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What is NAT Absolute Technologies PCL 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 %. NAT Absolute Technologies PCL's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 54.89%.

As of today (2024-12-15), NAT Absolute Technologies PCL's WACC % is 10.35%. NAT Absolute Technologies PCL's ROC % is 68.88% (calculated using TTM income statement data). NAT Absolute Technologies PCL 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.


NAT Absolute Technologies PCL ROC % Historical Data

The historical data trend for NAT Absolute Technologies PCL'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.

NAT Absolute Technologies PCL ROC % Chart

NAT Absolute Technologies PCL Annual Data
Trend Dec21 Dec22
ROC %
71.76 220.06

NAT Absolute Technologies PCL Quarterly Data
Dec21 Sep22 Dec22 Mar23 Jun23 Sep23 Mar24 Jun24 Sep24
ROC % Get a 7-Day Free Trial Premium Member Only - 134.87 165.87 99.78 54.89

NAT Absolute Technologies PCL ROC % Calculation

NAT Absolute Technologies PCL's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=135.212 * ( 1 - 20.25% )/( (37.558 + 60.443)/ 2 )
=107.83157/49.0005
=220.06 %

where

Invested Capital(A: Dec. 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))
=501.742 - 361.729 - ( 200.645 - max(0, 377.087 - 456.657+200.645))
=60.443

NAT Absolute Technologies PCL's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=213.612 * ( 1 - 20.09% )/( (273.529 + 348.426)/ 2 )
=170.6973492/310.9775
=54.89 %

where

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))
=1097.418 - 295.683 - ( 528.206 - max(0, 342.244 - 1017.35+528.206))
=273.529

Invested Capital(Q: Sep. 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))
=1019.167 - 259.857 - ( 410.884 - max(0, 291.931 - 940.01+410.884))
=348.426

Note: The Operating Income data used here is four times the quarterly (Sep. 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.


NAT Absolute Technologies PCL  (BKK:NAT) 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, NAT Absolute Technologies PCL's WACC % is 10.35%. NAT Absolute Technologies PCL's ROC % is 68.88% (calculated using TTM income statement data). NAT Absolute Technologies PCL 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.


NAT Absolute Technologies PCL ROC % Related Terms

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NAT Absolute Technologies PCL Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Ratchadaphisek Road, 89 AIA Capital Center Building, Room 908, 9th Floor, Din Daeng Subdistrict, Din Daeng District, Bangkok, THA, 10400
NAT Absolute Technologies PCL is engaged in information and communication technology services in Thailand. It provides consulting services, designs, procures and distributes equipment ready for installation, including providing contract system installation services related to information and communication technology systems (Information and Communication Technology System Integration).