Mumias Sugar Co (NAI:MSC) ROC % : -23.12% (As of Jun. 2018)

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What is Mumias Sugar 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 %. Mumias Sugar Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2018 was -23.12%.

As of today (2024-09-21), Mumias Sugar Co's WACC % is 0.00%. Mumias Sugar Co's ROC % is 0.00% (calculated using TTM income statement data). Mumias Sugar Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Mumias Sugar Co ROC % Historical Data

The historical data trend for Mumias Sugar 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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Mumias Sugar Co ROC % Chart

Mumias Sugar Co Annual Data

Trend

Jun09

Jun10

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

ROC %

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-10.11

-14.99

-12.03

-13.24

-23.12

Mumias Sugar Co Semi-Annual Data
	Jun09	Jun10	Jun11	Jun12	Jun13	Jun14	Jun15	Jun16	Jun17	Jun18
ROC %	Get a 7-Day Free Trial					-10.11	-14.99	-12.03	-13.24	-23.12

Mumias Sugar Co ROC % Calculation

Mumias Sugar Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2018 is calculated as:

	ROC % (A: Jun. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2017 )	+	Invested Capital (A: Jun. 2018 ))	/ count )
=	-4500.09 * ( 1 - -49.74% )	/	( (30809.379	+	27475.94)	/ 2 )
=	-6738.434766	/	29142.6595
=	-23.12 %

where

	Invested Capital		(A: Jun. 2017 )
=	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	))
=	24091.095	-	8442.67	-	( 8.769	-	max(0, 17021.245	-	1860.291	+	8.769	))
=	30809.379

	Invested Capital		(A: Jun. 2018 )
=	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	))
=	15735.609	-	9264.418	-	( 34.399	-	max(0, 21632.991	-	628.242	+	34.399	))
=	27475.94

Mumias Sugar Co's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2018 is calculated as:

	ROC % (Q: Jun. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2017 )	+	Invested Capital (Q: Jun. 2018 ))	/ count )
=	-4500.09 * ( 1 - -49.74% )	/	( (30809.379	+	27475.94)	/ 2 )
=	-6738.434766	/	29142.6595
=	-23.12 %

where

	Invested Capital		(Q: Jun. 2017 )
=	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	))
=	24091.095	-	8442.67	-	( 8.769	-	max(0, 17021.245	-	1860.291	+	8.769	))
=	30809.379

	Invested Capital		(Q: Jun. 2018 )
=	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	))
=	15735.609	-	9264.418	-	( 34.399	-	max(0, 21632.991	-	628.242	+	34.399	))
=	27475.94

Note: The Operating Income data used here is one times the annual (Jun. 2018) data.

Mumias Sugar Co (NAI:MSC) 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, Mumias Sugar Co's WACC % is 0.00%. Mumias Sugar Co's ROC % is 0.00% (calculated using TTM income statement data). Mumias Sugar 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.

Mumias Sugar Co ROC % Related Terms

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Mumias Sugar Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Mumias Sugar Co Ltd (NAI:MSC) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Kakamega-Bungoma Road, P. O Box Private Bag, Kakamega County, Mumias, KEN

Website

http://www.mumias-sugar.com

Mumias Sugar Co Ltd is engaged in the production and sale of sugar, ethanol, water. The company is also engaged in the generation and sale of electricity, and also sells bottled drinking water. Its segments include Sugar; Energy; Ethanol and Water in which Sugar segment generates most of the revenue.