Right Tunnelling PCL (BKK:RT) ROC % : 2.43% (As of Sep. 2024)

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What is Right Tunnelling 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 %. Right Tunnelling PCL's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 2.43%.

As of today (2024-12-14), Right Tunnelling PCL's WACC % is 6.08%. Right Tunnelling PCL's ROC % is 3.84% (calculated using TTM income statement data). Right Tunnelling PCL earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Right Tunnelling PCL ROC % Historical Data

The historical data trend for Right Tunnelling 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.

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Right Tunnelling PCL ROC % Chart

Right Tunnelling PCL Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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4.75

7.91

2.69

-7.30

3.88

Right Tunnelling PCL Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															7.67	2.07	6.45	3.21	2.43

Right Tunnelling PCL ROC % Calculation

Right Tunnelling PCL's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	199.453 * ( 1 - 17.2% )	/	( (3711.638	+	4799.525)	/ 2 )
=	165.147084	/	4255.5815
=	3.88 %

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	))
=	4515.397	-	689.806	-	( 113.953	-	max(0, 2472.795	-	2744.36	+	113.953	))
=	3711.638

	Invested Capital		(A: 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	))
=	5738.406	-	905.845	-	( 33.036	-	max(0, 3037.839	-	3836.631	+	33.036	))
=	4799.525

Right Tunnelling 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 )
=	186.3 * ( 1 - 34.37% )	/	( (4981.155	+	5089.309)	/ 2 )
=	122.26869	/	5035.232
=	2.43 %

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	))
=	6103	-	1070.62	-	( 51.225	-	max(0, 3943.013	-	4265.274	+	51.225	))
=	4981.155

	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	))
=	6183.283	-	1075.244	-	( 18.73	-	max(0, 4015.311	-	4323.441	+	18.73	))
=	5089.309

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Right Tunnelling PCL (BKK:RT) 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, Right Tunnelling PCL's WACC % is 6.08%. Right Tunnelling PCL's ROC % is 3.84% (calculated using TTM income statement data). Right Tunnelling PCL 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.

Right Tunnelling PCL ROC % Related Terms

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Right Tunnelling PCL Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Construction » Right Tunnelling PCL (BKK:RT) » Definitions » ROC %

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RT-R:Thailand

Address

292 Moo 4 Bangna-Trad Road, Bang Bo Subdistrict, Bang Bo District, Samut Prakan Province, Samut Prakan, THA, 10560

Website

https://www.rtco.co.th

Right Tunnelling PCL is a civil engineering service provider. It specializes in geology and special techniques such as tunnel construction, rock drilling, rock blasting, mining construction, soil boring tests, and concrete structures. The clients of the company include both the public and private sectors. The company offers services related to tunnel and shaft construction, dam construction, hydropower plant construction, and pipe jacking projects. The company operates in two geographic areas of Thailand and overseas (Myanmar, The Lao People's Democratic Republic, and Cambodia). Geographically, it derives a majority of its revenue from Thailand.