GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Barloworld Ltd (JSE:BAW) » Definitions » ROC %

Barloworld (JSE:BAW) ROC % : 9.36% (As of Sep. 2024)


View and export this data going back to 1941. Start your Free Trial

What is Barloworld 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 %. Barloworld's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 9.36%.

As of today (2025-03-16), Barloworld's WACC % is 12.40%. Barloworld's ROC % is 10.21% (calculated using TTM income statement data). Barloworld earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Barloworld ROC % Historical Data

The historical data trend for Barloworld'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.

Barloworld ROC % Chart

Barloworld Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.34 104.69 6.00 9.01 10.25

Barloworld Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.44 9.29 8.77 11.26 9.36

Barloworld ROC % Calculation

Barloworld's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2024 is calculated as:

ROC % (A: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2023 ) + Invested Capital (A: Sep. 2024 ))/ count )
=3787 * ( 1 - 32.97% )/( (24967 + 24540)/ 2 )
=2538.4261/24753.5
=10.25 %

where

Barloworld'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: Mar. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=3872 * ( 1 - 39.99% )/( (25090 + 24540)/ 2 )
=2323.5872/24815
=9.36 %

where

Note: The Operating Income data used here is two times the semi-annual (Sep. 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.


Barloworld  (JSE:BAW) 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, Barloworld's WACC % is 12.40%. Barloworld's ROC % is 10.21% (calculated using TTM income statement data). Barloworld 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.


Barloworld ROC % Related Terms

Thank you for viewing the detailed overview of Barloworld's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Barloworld Business Description

Traded in Other Exchanges
Address
61 Katherine Street, Sandton, Johannesburg, GT, ZAF, 2196
Barloworld Ltd is an industrial processing, distribution, and services company with two primary areas of focus: Industrial Equipment and Services and Consumer Industries (food and ingredient solutions). Industrial Equipment and related services offer earthmoving equipment, industrial services, and power systems. The Consumer Industries business provides large enterprises with the ingredients essential to the manufacturing of various products including food and beverages, paper, pharmaceuticals, building materials, and adhesives, among others. The company's business segment includes Equipments, which derives maximum revenue, Ingrain, and Others. Geographically, it derives its maximum revenue from South Africa and the rest from Australia, Russia, and Mongolia.

Barloworld Headlines

No Headlines