GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Sameer Africa Ltd (NAI:SMER) » Definitions » ROC %

Sameer Africa (NAI:SMER) ROC % : 4.88% (As of Dec. 2023)


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

What is Sameer Africa 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 %. Sameer Africa's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 4.88%.

As of today (2025-03-17), Sameer Africa's WACC % is 7.79%. Sameer Africa's ROC % is 6.59% (calculated using TTM income statement data). Sameer Africa earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Sameer Africa ROC % Historical Data

The historical data trend for Sameer Africa'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.

Sameer Africa ROC % Chart

Sameer Africa Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -48.04 8.80 26.61 12.21 6.84

Sameer Africa Semi-Annual Data
Dec12 Dec13 Jun14 Dec14 Jun15 Dec15 Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 14.98 16.14 7.63 8.44 4.88

Sameer Africa ROC % Calculation

Sameer Africa'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 )
=222.282 * ( 1 - 63.63% )/( (1035.774 + 1327.066)/ 2 )
=80.8439634/1181.42
=6.84 %

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))
=1212.686 - 141.819 - ( 142.874 - max(0, 330.131 - 365.224+142.874))
=1035.774

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))
=1483.096 - 147.379 - ( 154.992 - max(0, 457.717 - 466.368+154.992))
=1327.066

Sameer Africa's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=193.182 * ( 1 - 66.55% )/( (1318.932 + 1327.066)/ 2 )
=64.619379/1322.999
=4.88 %

where

Invested Capital(Q: 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))
=1483.096 - 147.379 - ( 154.992 - max(0, 457.717 - 466.368+154.992))
=1327.066

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) 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.


Sameer Africa  (NAI:SMER) 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, Sameer Africa's WACC % is 7.79%. Sameer Africa's ROC % is 6.59% (calculated using TTM income statement data). Sameer Africa 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.


Sameer Africa ROC % Related Terms

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


Sameer Africa Business Description

Traded in Other Exchanges
N/A
Address
Mombasa Road Junction, PO Box 30429, LR No. 12081/9, Nairobi, KEN, 00100
Sameer Africa Ltd engages in the manufacturing and distribution of tyres and allied products and the letting of investment property. The company operates through four business segments: sourcing and distribution, regional operations, Yana tyre centre, and rental business where the sourcing and distribution segment is engaged in the manufacturing and distribution of tires, tubes, and flaps, the regional operations segment engages in the buying and distribution of tires, tubes, and flaps in the Eastern Africa region, Yana tyre center segment is involved in the retailing of tires, tubes, and flaps, and the provision of tire-related services and the rental business segment is engaged in the letting of investment properties.

Sameer Africa Headlines

No Headlines