Ataa Educational Co (SAU:4292) ROC % : 4.01% (As of Jan. 2025)

View and export this data going back to 2019. Start your Free Trial

What is Ataa Educational 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 %. Ataa Educational Co's annualized return on capital (ROC %) for the quarter that ended in Jan. 2025 was 4.01%.

As of today (2025-03-24), Ataa Educational Co's WACC % is 8.97%. Ataa Educational Co's ROC % is 5.19% (calculated using TTM income statement data). Ataa Educational Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Ataa Educational Co ROC % Historical Data

The historical data trend for Ataa Educational 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.

* Premium members only.

Ataa Educational Co ROC % Chart

Ataa Educational Co Annual Data

Trend

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Jul24

ROC %

Get a 7-Day Free Trial

7.22

3.79

4.08

5.09

5.45

Ataa Educational Co Quarterly Data
	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24	Jan25
ROC %	Get a 7-Day Free Trial															4.16	4.04	7.58	5.15	4.01

Ataa Educational Co ROC % Calculation

Ataa Educational Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2024 is calculated as:

	ROC % (A: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2023 )	+	Invested Capital (A: Jul. 2024 ))	/ count )
=	126.245 * ( 1 - 2.6% )	/	( (2164.852	+	2349.252)	/ 2 )
=	122.96263	/	2257.052
=	5.45 %

where

	Invested Capital		(A: Jul. 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	))
=	2083.45	-	63.389	-	( 39.493	-	max(0, 346.852	-	202.061	+	39.493	))
=	2164.852

	Invested Capital		(A: Jul. 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	))
=	2175.338	-	16.889	-	( 85.6	-	max(0, 424.52	-	233.717	+	85.6	))
=	2349.252

Ataa Educational Co's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2025 is calculated as:

	ROC % (Q: Jan. 2025 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2024 )	+	Invested Capital (Q: Jan. 2025 ))	/ count )
=	97.116 * ( 1 - 3.45% )	/	( (2386.19	+	2292.893)	/ 2 )
=	93.765498	/	2339.5415
=	4.01 %

where

	Invested Capital		(Q: Oct. 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	))
=	2198.595	-	18.38	-	( 35.782	-	max(0, 442.197	-	236.222	+	35.782	))
=	2386.19

	Invested Capital		(Q: Jan. 2025 )
=	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	))
=	2133.329	-	17.437	-	( 71.283	-	max(0, 390.233	-	213.232	+	71.283	))
=	2292.893

Note: The Operating Income data used here is four times the quarterly (Jan. 2025) data.

Ataa Educational Co (SAU:4292) 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, Ataa Educational Co's WACC % is 8.97%. Ataa Educational Co's ROC % is 5.19% (calculated using TTM income statement data). Ataa Educational 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.

Ataa Educational Co ROC % Related Terms

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

Ataa Educational Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Education » Ataa Educational Co (SAU:4292) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Al-Hussein Bin Ali Street, P.O Box 87527, Exit 9, Al Izdihar District, Riyadh, SAU, 11652

Website

https://www.ataa.sa

Ataa Educational Co is a Saudi Arabia-based company involved in the establishment of national and international schools, kindergarten, primary, intermediate, and secondary schools for boys and girls, colleges and universities in the Kingdom of Saudi Arabia and abroad. It is also engaged in establishing, managing, and maintaining vocational training centers. The company's operating segments are; Education, Training, and Recruitment. The majority of its revenue is derived from the Education segment which is engaged in establishing and managing private, international, French and Indian schools.

Ataa Educational Co Headlines

No Headlines