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Taqat Mineral Trading Co (SAU:9599) ROC % : -6.78% (As of Jun. 2024)


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What is Taqat Mineral 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 %. Taqat Mineral Trading Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -6.78%.

As of today (2025-03-24), Taqat Mineral Trading Co's WACC % is 10.89%. Taqat Mineral Trading Co's ROC % is -3.39% (calculated using TTM income statement data). Taqat Mineral Trading Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Taqat Mineral Trading Co ROC % Historical Data

The historical data trend for Taqat Mineral 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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Taqat Mineral Trading Co ROC % Chart

Taqat Mineral Trading Co Annual Data
Trend
ROC %

Taqat Mineral Trading Co Semi-Annual Data
Jun23 Jun24
ROC % - -6.78

Taqat Mineral Trading Co ROC % Calculation

Taqat Mineral Trading Co's annualized Return on Capital (ROC %) for the fiscal year that ended in . 20 is calculated as:

ROC % (A: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: . 20 ) + Invested Capital (A: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Invested Capital(A: . 20 )
=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))
= - - ( - max(0, - +))
=

Invested Capital(A: . 20 )
=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))
= - - ( - max(0, - +))
=

Taqat Mineral Trading Co's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-7.222 * ( 1 - -24.56% )/( (0 + 132.712)/ 1 )
=-8.9957232/132.712
=-6.78 %

where

Invested Capital(Q: Jun. 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))
=0 - 0 - ( 0 - max(0, 0 - 0+0))
=0

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))
=154.498 - 7.96 - ( 13.826 - max(0, 20.208 - 63.45+13.826))
=132.712

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) 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.

Taqat Mineral Trading Co  (SAU:9599) 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, Taqat Mineral Trading Co's WACC % is 10.89%. Taqat Mineral Trading Co's ROC % is -3.39% (calculated using TTM income statement data). Taqat Mineral 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.

Taqat Mineral Trading Co ROC % Related Terms

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Taqat Mineral Trading Co Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Taqat Mineral Trading Co (SAU:9599) » Definitions » ROC %
Comparable Companies
SAU:1832 CRS MLI ATI ESAB SZSE:000039 TPE:2474 SHSE:688122 SZSE:300748 XTER:NDA SHSE:601399 SHSE:688409 SZSE:300953 WBO:RHIM WOR SHSE:603308 XBRU:BEKB SZSE:301522 BOM:539006 SZSE:002541
Traded in Other Exchanges
N/A
Address
Abu Nasr Al Dabbas Road, Al Musfat District, Riyadh, SAU, 14545
Website
https://www.taqatco.sa
Taqat Mineral Trading Co is a company whose business activities are represented in its record. commercial in construction, manufacturing, transportation, storage, water supply, sanitation activities, waste management and treatment. It works in the field of metal and scrap iron recycling.

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