Samudera Shipping Line (SGX:S56) ROC % : 6.95% (As of Jun. 2024)

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What is Samudera Shipping Line 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 %. Samudera Shipping Line's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 6.95%.

As of today (2024-12-16), Samudera Shipping Line's WACC % is 11.21%. Samudera Shipping Line's ROC % is 10.12% (calculated using TTM income statement data). Samudera Shipping Line earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Samudera Shipping Line ROC % Historical Data

The historical data trend for Samudera Shipping Line'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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Samudera Shipping Line ROC % Chart

Samudera Shipping Line Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.07

6.86

44.29

76.93

16.45

Samudera Shipping Line Semi-Annual 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															87.01	62.90	22.54	12.81	6.95

Samudera Shipping Line ROC % Calculation

Samudera Shipping Line'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 )
=	118.889 * ( 1 - 3.76% )	/	( (664.734	+	726.679)	/ 2 )
=	114.4187736	/	695.7065
=	16.45 %

where

	Invested Capital		(A: Dec. 2022 )
=	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	))
=	1200.854	-	58.194	-	( 514.84	-	max(0, 293.27	-	771.196	+	514.84	))
=	664.734

	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	))
=	1212.459	-	40.279	-	( 477.844	-	max(0, 187.833	-	633.334	+	477.844	))
=	726.679

Samudera Shipping Line'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 )
=	50.614 * ( 1 - 6.53% )	/	( (726.679	+	634.871)	/ 2 )
=	47.3089058	/	680.775
=	6.95 %

where

	Invested Capital		(Q: 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	))
=	1212.459	-	40.279	-	( 477.844	-	max(0, 187.833	-	633.334	+	477.844	))
=	726.679

	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	))
=	1147.512	-	98.458	-	( 422.614	-	max(0, 154.151	-	568.334	+	422.614	))
=	634.871

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

Samudera Shipping Line (SGX:S56) 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, Samudera Shipping Line's WACC % is 11.21%. Samudera Shipping Line's ROC % is 10.12% (calculated using TTM income statement data). Samudera Shipping Line 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.

Samudera Shipping Line ROC % Related Terms

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Samudera Shipping Line Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Samudera Shipping Line Ltd (SGX:S56) » Definitions » ROC %

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Address

6 Raffles Quay, No. 25-01, Singapore, SGP, 048580

Website

https://www.samudera.id

Samudera Shipping Line Ltd is a cargo transportation company that is engaged in owning and operating ocean-going ships and the provision of containerized feeder shipping services. Its segments include Container Shipping, Bulk and Tanker, Agencies and Logistics. The Container Shipping segment provides feeder services for the transportation of containerized cargo between Singapore as a hub port and other outgoing spoke ports in Asia, as well as inter-region and intra-region container shipping services to end users. The Bulk and Tanker segment provides transportation of special dry bulk, liquid, and gas cargo in the international, as well as Indonesian domestic market. Its Agencies and Logistics segment provides agency services, forwarding, warehousing and general logistics services.

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