Livestock Transport & Trading Co (KUW:CATTL) ROC % : -13.17% (As of Sep. 2024)

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What is Livestock Transport & Trading Co 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 %. Livestock Transport & Trading Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -13.17%.

As of today (2025-04-04), Livestock Transport & Trading Co's WACC % is 7.41%. Livestock Transport & Trading Co's ROC % is 1.05% (calculated using TTM income statement data). Livestock Transport & Trading Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Livestock Transport & Trading Co ROC % Historical Data

The historical data trend for Livestock Transport & Trading Co'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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Livestock Transport & Trading Co ROC % Chart

Livestock Transport & Trading Co Annual Data

Trend

Dec12

Dec13

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-0.50

-3.59

-5.45

-6.33

1.20

Livestock Transport & Trading Co 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															-7.88	9.41	6.22	1.60	-13.17

Livestock Transport & Trading Co ROC % Calculation

Livestock Transport & Trading Co'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 )
=	0.461 * ( 1 - -25.26% )	/	( (53.873	+	42.577)	/ 2 )
=	0.5774486	/	48.225
=	1.20 %

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	))
=	58.863	-	1.927	-	( 3.063	-	max(0, 10.913	-	20.917	+	3.063	))
=	53.873

	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	))
=	55.152	-	2.199	-	( 251.351	-	max(0, 8.293	-	18.669	+	251.351	))
=	42.577

Livestock Transport & Trading Co'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 )
=	-6.404 * ( 1 - 0.96% )	/	( (47.661	+	48.69)	/ 2 )
=	-6.3425216	/	48.1755
=	-13.17 %

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	))
=	53.077	-	2.874	-	( 2.542	-	max(0, 6.969	-	18.154	+	2.542	))
=	47.661

	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	))
=	52.787	-	2.836	-	( 1.261	-	max(0, 8.34	-	17.111	+	1.261	))
=	48.69

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

Livestock Transport & Trading Co (KUW:CATTL) 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, Livestock Transport & Trading Co's WACC % is 7.41%. Livestock Transport & Trading Co's ROC % is 1.05% (calculated using TTM income statement data). Livestock Transport & Trading Co 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.

Livestock Transport & Trading Co ROC % Related Terms

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Livestock Transport & Trading Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Livestock Transport & Trading Co (KUW:CATTL) » Definitions » ROC %

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Traded in Other Exchanges

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Address

Sulaibiya Agricultural Area, Block 12, P.O. Box 23727, Kuwait, KWT, 13098

Website

https://www.almawashi.com.kw

Livestock Transport & Trading Co is engaged in livestock import & export business. It operates in three segments: Commercial, which includes purchasing, transporting, ranching, and selling the live and slaughtered sheep and all skins, intestines, and fertilizers, and also purchasing and selling fodder and chilled & frozen meat in wholesale and retail; Food processing segment includes meat processing and its classification in all products and selling it in wholesale; and Investments segment include investment portfolios managed by specialized companies and deposits. It generates the majority of its revenue from the Commercial segment. Its geographical segments are Kuwait, UAE, Australia, and South Africa, of which Kuwait accounts for majority of its revenue.

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