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Tipco Asphalt PCL (BKK:TASCO) ROC % : 4.17% (As of Dec. 2023)


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What is Tipco Asphalt 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 %. Tipco Asphalt PCL's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 4.17%.

As of today (2024-04-29), Tipco Asphalt PCL's WACC % is 2.01%. Tipco Asphalt PCL's ROC % is 10.55% (calculated using TTM income statement data). Tipco Asphalt 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.


Tipco Asphalt PCL ROC % Historical Data

The historical data trend for Tipco Asphalt 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.

Tipco Asphalt PCL ROC % Chart

Tipco Asphalt PCL Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.73 16.92 14.78 13.97 11.06

Tipco Asphalt PCL Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 24.51 19.00 13.06 5.33 4.17

Tipco Asphalt PCL ROC % Calculation

Tipco Asphalt 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 )
=2565.495 * ( 1 - 20.05% )/( (19401.308 + 17692.765)/ 2 )
=2051.1132525/18547.0365
=11.06 %

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))
=26257.183 - 4252.38 - ( 2603.495 - max(0, 8526.283 - 16506.877+2603.495))
=19401.308

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))
=23664.091 - 2969.755 - ( 3001.571 - max(0, 5941.572 - 14380.126+3001.571))
=17692.765

Tipco Asphalt PCL's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=1076.464 * ( 1 - 26.21% )/( (20394.195 + 17692.765)/ 2 )
=794.3227856/19043.48
=4.17 %

where

Invested Capital(Q: Sep. 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))
=25631.908 - 2888.901 - ( 2348.812 - max(0, 7843.325 - 15792.137+2348.812))
=20394.195

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))
=23664.091 - 2969.755 - ( 3001.571 - max(0, 5941.572 - 14380.126+3001.571))
=17692.765

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) 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.


Tipco Asphalt PCL  (BKK:TASCO) 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, Tipco Asphalt PCL's WACC % is 2.01%. Tipco Asphalt PCL's ROC % is 10.55% (calculated using TTM income statement data). Tipco Asphalt 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.


Tipco Asphalt PCL ROC % Related Terms

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Tipco Asphalt PCL (BKK:TASCO) Business Description

Traded in Other Exchanges
Address
118/1 Rama 6 Road, Phayathai Sub district, Phayathai District, Bangkok, THA, 10400
Tipco Asphalt PCL operates in two segment based on types of products and services. The Group conducts manufacturing and trading of asphalt, petroleum oil products and asphalt concrete in both domestic and overseas markets. Whereas, the marine logistic business complements the manufacturing and trading of asphalt and petroleum oil products. The Group conducts construction service related to highway construction and road rehabilitation in Thailand. The company operates in Thailand and Overseas, majority of its revenue being from Overseas. The company generates majority revenue from Manufacturing and trading segment.

Tipco Asphalt PCL (BKK:TASCO) Headlines

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