GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Polaris Ltd (SGX:5BI) » Definitions » ROC %

Polaris (SGX:5BI) ROC % : -25.02% (As of Jun. 2024)


View and export this data going back to 1993. Start your Free Trial

What is Polaris 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 %. Polaris's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -25.02%.

As of today (2025-03-03), Polaris's WACC % is -3.06%. Polaris's ROC % is -27.68% (calculated using TTM income statement data). Polaris earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Polaris ROC % Historical Data

The historical data trend for Polaris'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.

Polaris ROC % Chart

Polaris 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 0.32 -1.96 -1.77 -8.49 -35.97

Polaris Quarterly Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 -6.43 -28.36 -52.57 -86.61 -25.02

Polaris ROC % Calculation

Polaris'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 )
=-2.446 * ( 1 - 0.73% )/( (6.072 + 7.428)/ 2 )
=-2.4281442/6.75
=-35.97 %

where

Polaris'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: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-1.884 * ( 1 - 0% )/( (7.428 + 7.632)/ 2 )
=-1.884/7.53
=-25.02 %

where

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.


Polaris  (SGX:5BI) 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, Polaris's WACC % is -3.06%. Polaris's ROC % is -27.68% (calculated using TTM income statement data). Polaris 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.


Polaris ROC % Related Terms

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


Polaris Business Description

Traded in Other Exchanges
N/A
Address
81 Ubi Avenue 4, Number 03-11 UB.One, Singapore, SGP, 408830
Polaris Ltd is an investment holding company. The segments of the company include the Pre-owned luxury goods segment, which engages in the business of importing and exporting pre-owned luxury goods and premium lifestyle products; the Consumer electronics segment, which engages in the corporate sale of telecommunication, IT, educational robotics, and consumer electronics products; Customer services segment, which provides after-market services to end consumers for equipment repairs, refurbishments, and technical services; and Corporate segment, which is involved in Group-level corporate services, treasury functions, and investments.

Polaris Headlines

No Headlines