PT Budi Starch & Sweetener Tbk (ISX:BUDI) ROC % : 6.48% (As of Mar. 2024)

View and export this data going back to 1995. Start your Free Trial

What is PT Budi Starch & Sweetener Tbk 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 %. PT Budi Starch & Sweetener Tbk's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 6.48%.

As of today (2024-06-20), PT Budi Starch & Sweetener Tbk's WACC % is 8.19%. PT Budi Starch & Sweetener Tbk's ROC % is 6.08% (calculated using TTM income statement data). PT Budi Starch & Sweetener Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PT Budi Starch & Sweetener Tbk ROC % Historical Data

The historical data trend for PT Budi Starch & Sweetener Tbk'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.

PT Budi Starch & Sweetener Tbk ROC % Chart

PT Budi Starch & Sweetener Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

6.15

6.95

6.55

6.28

6.48

PT Budi Starch & Sweetener Tbk Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															8.10	5.27	5.43	7.26	6.48

PT Budi Starch & Sweetener Tbk ROC % Calculation

PT Budi Starch & Sweetener Tbk'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 )
=	242642 * ( 1 - 19.46% )	/	( (2941203	+	3090454)	/ 2 )
=	195423.8668	/	3015828.5
=	6.48 %

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	))
=	3173651	-	167063	-	( 65385	-	max(0, 1189965	-	1582322	+	65385	))
=	2941203

	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	))
=	3327846	-	120892	-	( 116500	-	max(0, 1251674	-	1708152	+	116500	))
=	3090454

PT Budi Starch & Sweetener Tbk'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 )
=	255596 * ( 1 - 20.28% )	/	( (3090454	+	3202317)	/ 2 )
=	203761.1312	/	3146385.5
=	6.48 %

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	))
=	3327846	-	120892	-	( 116500	-	max(0, 1251674	-	1708152	+	116500	))
=	3090454

	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	))
=	3512869	-	223543	-	( 87009	-	max(0, 1446867	-	1917499	+	87009	))
=	3202317

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

PT Budi Starch & Sweetener Tbk (ISX:BUDI) 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, PT Budi Starch & Sweetener Tbk's WACC % is 8.19%. PT Budi Starch & Sweetener Tbk's ROC % is 6.08% (calculated using TTM income statement data). PT Budi Starch & Sweetener Tbk 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.

PT Budi Starch & Sweetener Tbk ROC % Related Terms

Thank you for viewing the detailed overview of PT Budi Starch & Sweetener Tbk's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

PT Budi Starch & Sweetener Tbk (ISX:BUDI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » PT Budi Starch & Sweetener Tbk (ISX:BUDI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jalan H.R. Rasuna Said Kav. C-6, Wisma Budi 8th - 9th Floor, Jakarta, IDN, 12940

Website

https://www.budistarchsweetener.com

PT Budi Starch & Sweetener Tbk is an Indonesia-based company involved in the packaged food business sector. The Company's primary activities include industrial food processing and chemicals, and all derivative products produced from cassava, sweet potato, palm oil, copra, and other agricultural products and a wide variety of industries, especially the plastics industry. The segments of the company are tapioca starch, sweeteners, PP Woven Bags, Sulphuric Acid, and Other Chemical Products. The company generates maximum revenue from Tapioca starch products.

PT Budi Starch & Sweetener Tbk (ISX:BUDI) Headlines

No Headlines