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 Kertas Basuki Rachmat Indonesia Tbk's annualized return on capital (ROC %) for the quarter that ended in Sep. 2019 was -2.69%.
PT Kertas Basuki Rachmat Indonesia Tbk (ISX:KBRI) 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 Kertas Basuki Rachmat Indonesia Tbk's WACC % is 0.00%. PT Kertas Basuki Rachmat Indonesia Tbk's ROC % is 0.00% (calculated using TTM income statement data).
PT Kertas Basuki Rachmat Indonesia 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 Kertas Basuki Rachmat Indonesia Tbk ROC % Related Terms
PT Kertas Basuki Rachmat Indonesia Tbk ROC % Historical 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.
PT Kertas Basuki Rachmat Indonesia Tbk ROC % Chart
PT Kertas Basuki Rachmat Indonesia Tbk Annual Data
Note:
The Operating Income data used here is four times the quarterly (Sep. 2019) data.
The tax rate is limited to between 0% and 100%.
* 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.
PT Kertas Basuki Rachmat Indonesia Tbk (ISX:KBRI) has a ROC % of -2.69% as of Sep. 2019. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on PT Kertas Basuki Rachmat Indonesia Tbk and its competitors.
Is PT Kertas Basuki Rachmat Indonesia Tbk's ROC % too high?
PT Kertas Basuki Rachmat Indonesia Tbk's current ROC % is -2.69%. Overall, PT Kertas Basuki Rachmat Indonesia Tbk has a GF Score™ of 4/100, reflecting its overall financial health beyond just this single metric.
How does PT Kertas Basuki Rachmat Indonesia Tbk's ROC % compare to competitors?
PT Kertas Basuki Rachmat Indonesia Tbk's ROC % of -2.69% can be compared against companies in the Forest Products industry. The industry median ROC % is 1.55. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Forest Products company?
The median ROC % among Forest Products companies is 1.55, based on 277 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on PT Kertas Basuki Rachmat Indonesia Tbk and its competitors. For the Forest Products industry, the median ROC % is 1.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Kertas Basuki Rachmat Indonesia Tbk's current ROC % is -2.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Kertas Basuki Rachmat Indonesia Tbk stock overvalued right now?
PT Kertas Basuki Rachmat Indonesia Tbk (ISX:KBRI) has a current ROC % of -2.69%. The current ROC % is -2.69%. PT Kertas Basuki Rachmat Indonesia Tbk's overall GF Score™ is 4/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For PT Kertas Basuki Rachmat Indonesia Tbk (ISX:KBRI), the current ROC % is -2.69% as of Sep. 2019. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
PT Kertas Basuki Rachmat Indonesia Tbk Business Description
AddressJalan Letjen. TB. Simatupang no.1, Gedung Antam Office Park, Tower B Lantai 11, RT. 010/04 Tanjung Barat - Jagakarsa, Jakarta Selatan, IDN, 12530
PT Kertas Basuki Rachmat Indonesia Tbk manufactures a wide range of paper products for office and consumer use. It has produced various papers for offices and general needs such as intermediate liner, wrapping, back kraft and Uncoated Wood Free Paper. The firm also offers culture papers, writing papers, printing papers, and wrapping papers. Its products are in the form of sheets, plano size, and rolls. The firm mainly operates in Indonesia.
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