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Ritamix Global (HKSE:01936) ROC % : 6.16% (As of Jun. 2024)


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What is Ritamix Global 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 %. Ritamix Global's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 6.16%.

As of today (2024-12-14), Ritamix Global's WACC % is 1.96%. Ritamix Global's ROC % is 7.97% (calculated using TTM income statement data). Ritamix Global 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.


Ritamix Global ROC % Historical Data

The historical data trend for Ritamix Global'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.

Ritamix Global ROC % Chart

Ritamix Global Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial 18.04 8.74 12.23 15.03 10.10

Ritamix Global Semi-Annual Data
Dec17 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.49 14.94 11.59 9.84 6.16

Ritamix Global ROC % Calculation

Ritamix Global'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 )
=18.074 * ( 1 - 26.73% )/( (135.089 + 127.222)/ 2 )
=13.2428198/131.1555
=10.10 %

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))
=280.984 - 14.531 - ( 131.364 - max(0, 17.637 - 255.93+131.364))
=135.089

Ritamix Global'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 )
=11.96 * ( 1 - 33.82% )/( (127.222 + 129.835)/ 2 )
=7.915128/128.5285
=6.16 %

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))
=293.798 - 15.532 - ( 148.431 - max(0, 18.864 - 268.364+148.431))
=129.835

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.


Ritamix Global  (HKSE:01936) 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, Ritamix Global's WACC % is 1.96%. Ritamix Global's ROC % is 7.97% (calculated using TTM income statement data). Ritamix Global 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.


Ritamix Global ROC % Related Terms

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Ritamix Global Business Description

Traded in Other Exchanges
N/A
Address
No. 7, Jalan TP 7, UEP Industrial Park, Shah Alam, SGR, MYS, 40400
Ritamix Global Ltd is engaged in the distribution of animal feed additives and, human food ingredients; and the manufacturing of animal feed additives premixes. The company offers a wide range of animal feed additives including amino acids, vitamins, minerals, enzymes, and photogenic ingredients produced by chemical and feed ingredients companies of international brand names. It has diversified its product portfolio to include human food ingredients such as baking soda, minerals, hydrocolloids, emulsifiers, and vitamins. Its operating segments include the Animal feed additives products segment: manufacturing and distribution of animal feed additives products; and the Human food ingredient products segment: distribution of human food ingredient products.
Executives
Garry-worth Investment Limited
Lee Haw Hann
Lee Haw Shyang
Lee Haw Yih
Yaw Sook Kean
Yee Mei Loon
Voon Sze Lin
Warrants Capital Ltd
Lim Ee Min

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