GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » United Arab Float Glass Co (SAU:9611) » Definitions » ROC %

United Arab Float Glass Co (SAU:9611) ROC % : 7.64% (As of Jun. 2024)


View and export this data going back to 2024. Start your Free Trial

What is United Arab Float Glass 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 %. United Arab Float Glass Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 7.64%.

As of today (2024-12-14), United Arab Float Glass Co's WACC % is 0.00%. United Arab Float Glass Co's ROC % is 1.91% (calculated using TTM income statement data). United Arab Float Glass Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

United Arab Float Glass Co ROC % Historical Data

The historical data trend for United Arab Float Glass 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.

United Arab Float Glass Co ROC % Chart

United Arab Float Glass Co Annual Data
Trend
ROC %

United Arab Float Glass Co Quarterly Data
Jun23 Jun24
ROC % - 7.64

United Arab Float Glass Co ROC % Calculation

United Arab Float Glass 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, - +))
=

United Arab Float Glass 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 )
=45.252 * ( 1 - 3.72% )/( (0 + 570.416)/ 1 )
=43.5686256/570.416
=7.64 %

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))
=613.245 - 38.134 - ( 8.198 - max(0, 121.477 - 126.172+8.198))
=570.416

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

United Arab Float Glass Co  (SAU:9611) 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, United Arab Float Glass Co's WACC % is 0.00%. United Arab Float Glass Co's ROC % is 1.91% (calculated using TTM income statement data). United Arab Float Glass Co generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

United Arab Float Glass Co ROC % Related Terms

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

United Arab Float Glass Co Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » United Arab Float Glass Co (SAU:9611) » Definitions » ROC %
Comparable Companies
Traded in Other Exchanges
N/A
Address
Al Thumama Road, 13316 P.O. Box, All Rabie District, Riyadh, SAU, 26994
Website
https://www.aufgc.com
United Arab Float Glass Co is engaged in the float glass market that designs, thicknesses, and dimensions glasses. Its products are Clear float glass, Pattern glass, Silver, and Decorative mirrors. The company's activity is represented in the wholesale and retail trade of the company's products and building materials, including importing and exporting them abroad, owning lands and real estate, constructing buildings on them, practicing manufacturing industries related to the glass industry, and manufacturing and mining all glass industry requirements from raw materials and others.

United Arab Float Glass Co Headlines

No Headlines