PT Indoritel Makmur Internasional Tbk (ISX:DNET) ROC % : 1.21% (As of Sep. 2024)

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What is PT Indoritel Makmur Internasional 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 Indoritel Makmur Internasional Tbk's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 1.21%.

As of today (2025-03-23), PT Indoritel Makmur Internasional Tbk's WACC % is 3.45%. PT Indoritel Makmur Internasional Tbk's ROC % is 1.61% (calculated using TTM income statement data). PT Indoritel Makmur Internasional Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PT Indoritel Makmur Internasional Tbk ROC % Historical Data

The historical data trend for PT Indoritel Makmur Internasional 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.

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PT Indoritel Makmur Internasional Tbk ROC % Chart

PT Indoritel Makmur Internasional Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-0.93

0.32

1.94

2.33

PT Indoritel Makmur Internasional Tbk Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															3.14	1.53	1.70	1.46	1.21

PT Indoritel Makmur Internasional Tbk ROC % Calculation

PT Indoritel Makmur Internasional 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 )
=	455532 * ( 1 - 8.17% )	/	( (17647898	+	18267219)	/ 2 )
=	418315.0356	/	17957558.5
=	2.33 %

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	))
=	18918152	-	457294	-	( 4407199	-	max(0, 4122650	-	4935610	+	4407199	))
=	17647898

	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	))
=	20710860	-	712556	-	( 2955837	-	max(0, 1796207	-	3527292	+	2955837	))
=	18267219

PT Indoritel Makmur Internasional Tbk's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	226960 * ( 1 - 1.2% )	/	( (18405464	+	18728813)	/ 2 )
=	224236.48	/	18567138.5
=	1.21 %

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	))
=	21163653	-	609919	-	( 2985028	-	max(0, 1533790	-	3682060	+	2985028	))
=	18405464

	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	))
=	21481568	-	674559	-	( 2879671	-	max(0, 1520361	-	3598557	+	2879671	))
=	18728813

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

PT Indoritel Makmur Internasional Tbk (ISX:DNET) 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 Indoritel Makmur Internasional Tbk's WACC % is 3.45%. PT Indoritel Makmur Internasional Tbk's ROC % is 1.61% (calculated using TTM income statement data). PT Indoritel Makmur Internasional 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 Indoritel Makmur Internasional Tbk ROC % Related Terms

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PT Indoritel Makmur Internasional Tbk Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » PT Indoritel Makmur Internasional Tbk (ISX:DNET) » Definitions » ROC %

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Address

Jalan Jenderal Sudirman Kav. 70-71, Gedung Wisma Indocement Lantai 10, Jakarta, IDN, 12910

Website

https://www.indoritel.co.id

PT Indoritel Makmur Internasional Tbk is an investment holding company. The company, through its subsidiaries, is engaged in providing infrastructure through fiber optic media and serving telecommunication services ranging from data communication to interactive video, managing SDWAN services, and a variety of other Internet of Things (IoT) derivatives. Its segments are Corporate segment, Retail segment, and Others. It generates the majority of revenue from the Corporate segment. The Corporate Business Segment provides fiber-optic-based telecommunications data connection service products for business customers such as Last Mile Solution, Fiberization, IP Transit, IEPL, MPLS, and DWDM to other telecommunications operators and international customers.

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