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Gediz Ambalajnayi ve Ticaret AS (IST:GEDZA) ROC % : 4.12% (As of Mar. 2024)


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What is Gediz Ambalajnayi ve Ticaret AS 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 %. Gediz Ambalajnayi ve Ticaret AS's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 4.12%.

As of today (2025-03-02), Gediz Ambalajnayi ve Ticaret AS's WACC % is 10.36%. Gediz Ambalajnayi ve Ticaret AS's ROC % is 32.96% (calculated using TTM income statement data). Gediz Ambalajnayi ve Ticaret AS 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.


Gediz Ambalajnayi ve Ticaret AS ROC % Historical Data

The historical data trend for Gediz Ambalajnayi ve Ticaret AS'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.

Gediz Ambalajnayi ve Ticaret AS ROC % Chart

Gediz Ambalajnayi ve Ticaret AS Annual Data
Trend Dec13 Dec14 Dec21 Dec22 Dec23
ROC %
15.48 11.17 51.47 -10.78 25.74

Gediz Ambalajnayi ve Ticaret AS Quarterly Data
Jun13 Sep13 Dec13 Jun14 Sep14 Dec14 Sep15 Dec21 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 6.20 44.78 51.93 47.41 4.12

Gediz Ambalajnayi ve Ticaret AS ROC % Calculation

Gediz Ambalajnayi ve Ticaret AS'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 )
=177.376 * ( 1 - 7.81% )/( (608.918 + 661.461)/ 2 )
=163.5229344/635.1895
=25.74 %

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))
=818.682 - 53.202 - ( 104.019 - max(0, 102.87 - 396.979+104.019))
=661.461

Gediz Ambalajnayi ve Ticaret AS's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

ROC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=198.076 * ( 1 - 85.53% )/( (661.461 + 729.852)/ 2 )
=28.6615972/695.6565
=4.12 %

where

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))
=818.682 - 53.202 - ( 104.019 - max(0, 102.87 - 396.979+104.019))
=661.461

Invested Capital(Q: Mar. 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))
=945.575 - 97.203 - ( 118.52 - max(0, 122.051 - 468.833+118.52))
=729.852

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


Gediz Ambalajnayi ve Ticaret AS  (IST:GEDZA) 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, Gediz Ambalajnayi ve Ticaret AS's WACC % is 10.36%. Gediz Ambalajnayi ve Ticaret AS's ROC % is 32.96% (calculated using TTM income statement data). Gediz Ambalajnayi ve Ticaret AS 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.


Gediz Ambalajnayi ve Ticaret AS ROC % Related Terms

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Gediz Ambalajnayi ve Ticaret AS Business Description

Traded in Other Exchanges
N/A
Address
Highway 3 Km, Kutahya, Gediz, TUR, 43600
Gediz Ambalaj Sanayi ve Ticaret AS is a manufacturer of corrugated polypropylene (PP) sheet in Turkey. Its PP sheets are used in various applications, such as separators, white appliances and electronics, automotive products, logistic products, iron works, stationery products, project bags, magazine boxes, archive boxes, vegetable and fruit boxes, multipurpose boxes, recycling bins, signboards and stands, agricultural products, flower boxes, pet kennels, beehives, greenhouses, sapling shield products, and building and isolation products.

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