Saudi Public Transport Co (SAU:4040) ROC % : 2.65% (As of Dec. 2024)

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What is Saudi Public Transport 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 %. Saudi Public Transport Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 2.65%.

As of today (2025-03-23), Saudi Public Transport Co's WACC % is 9.42%. Saudi Public Transport Co's ROC % is 4.28% (calculated using TTM income statement data). Saudi Public Transport Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Saudi Public Transport Co ROC % Historical Data

The historical data trend for Saudi Public Transport 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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Saudi Public Transport Co ROC % Chart

Saudi Public Transport Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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-6.26

-2.75

1.45

6.70

2.29

Saudi Public Transport Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															-2.99	-1.88	6.72	5.76	2.65

Saudi Public Transport Co ROC % Calculation

Saudi Public Transport Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	145.617 * ( 1 - 47.86% )	/	( (3441.278	+	3182.071)	/ 2 )
=	75.9247038	/	3311.6745
=	2.29 %

where

	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	))
=	4036.217	-	239.566	-	( 355.373	-	max(0, 1186.425	-	1843.336	+	355.373	))
=	3441.278

	Invested Capital		(A: Dec. 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	))
=	3855.634	-	316.745	-	( 459.743	-	max(0, 1372.957	-	1729.775	+	459.743	))
=	3182.071

Saudi Public Transport Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	118.652 * ( 1 - 24.57% )	/	( (3572.168	+	3182.071)	/ 2 )
=	89.4992036	/	3377.1195
=	2.65 %

where

	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	))
=	4041.716	-	107.88	-	( 361.668	-	max(0, 1340.735	-	1907.658	+	361.668	))
=	3572.168

	Invested Capital		(Q: Dec. 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	))
=	3855.634	-	316.745	-	( 459.743	-	max(0, 1372.957	-	1729.775	+	459.743	))
=	3182.071

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

Saudi Public Transport Co (SAU:4040) 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, Saudi Public Transport Co's WACC % is 9.42%. Saudi Public Transport Co's ROC % is 4.28% (calculated using TTM income statement data). Saudi Public Transport 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.

Saudi Public Transport Co ROC % Related Terms

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Saudi Public Transport Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Saudi Public Transport Co (SAU:4040) » Definitions » ROC %

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Address

Al-Takhasusi Street, Building No. 7995, P.O. Box 10667, Al-Nakheel neighborhood, Riyadh, SAU, 11443

Website

https://www.saptco.com.sa

Saudi Public Transport Co provides transportation services. It is engaged in passenger land transport services in both intra and inter-city throughout the Kingdom and outside the Kingdom of Saudi Arabia, Group is also involved in the transfer of non-postal parcels, cargo, school transport, teachers transport, car rental and sand and gravel transport. The segments include Passenger transport, Specialised services, Head office, Digital mobility solutions and Concession for the Abdul-Aziz Project for Public transport in Riyadh, out of which the majority is from the Passenger Transport segment. Business activity mainly functions through Saudi.

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