Dubai Taxi Co (DFM:DTC) ROC % : 23.76% (As of Dec. 2024)

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What is Dubai Taxi Co 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 %. Dubai Taxi Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 23.76%.

As of today (2025-03-23), Dubai Taxi Co's WACC % is 9.66%. Dubai Taxi Co's ROC % is 23.24% (calculated using TTM income statement data). Dubai Taxi Co 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.

Dubai Taxi Co ROC % Historical Data

The historical data trend for Dubai Taxi Co'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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Dubai Taxi Co ROC % Chart

Dubai Taxi Co Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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-13.10

12.38

14.92

24.12

23.13

Dubai Taxi Co Quarterly Data
	Dec19	Dec20	Dec21	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial									19.55	33.00	20.40	16.80	23.76

Dubai Taxi Co ROC % Calculation

Dubai Taxi Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	375.255 * ( 1 - 9.04% )	/	( (1340.296	+	1610.796)	/ 2 )
=	341.331948	/	1475.546
=	23.13 %

where

	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	))
=	1956.008	-	616.147	-	( 404.233	-	max(0, 616.147	-	615.712	+	404.233	))
=	1340.296

	Invested Capital		(A: Dec. 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	))
=	2318.361	-	709.082	-	( 418.027	-	max(0, 709.78	-	708.263	+	418.027	))
=	1610.796

Dubai Taxi Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	404.352 * ( 1 - 8.96% )	/	( (1487.645	+	1610.796)	/ 2 )
=	368.1220608	/	1549.2205
=	23.76 %

where

	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	))
=	2098.729	-	665.782	-	( 350.756	-	max(0, 666.47	-	611.772	+	350.756	))
=	1487.645

	Invested Capital		(Q: Dec. 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	))
=	2318.361	-	709.082	-	( 418.027	-	max(0, 709.78	-	708.263	+	418.027	))
=	1610.796

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

Dubai Taxi Co (DFM:DTC) 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, Dubai Taxi Co's WACC % is 9.66%. Dubai Taxi Co's ROC % is 23.24% (calculated using TTM income statement data). Dubai Taxi Co 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.

Dubai Taxi Co ROC % Related Terms

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Dubai Taxi Co Business Description

Industry

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Address

Amman Street, P.O. Box 2647, First floor, main building, Al Muhaisnah area, Dubai, ARE

Website

https://www.dubaitaxi.ae

Dubai Taxi Co is a mobility solutions and taxi operator company in Dubai. It offers a wide range of transportation solutions across its four main business lines, which include taxi services through its large, environmentally friendly fleet, VIP limousine services consisting of chauffeur-driven vehicles to provide luxury service, bus services, and last-mile delivery services via delivery bikes. It generates the majority of its revenue from Regular Taxi.