PT Global Mediacom Tbk (STU:06L) ROC % : 9.62% (As of Mar. 2024)

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What is PT Global Mediacom Tbk 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 %. PT Global Mediacom Tbk's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 9.62%.

As of today (2024-06-25), PT Global Mediacom Tbk's WACC % is 8.12%. PT Global Mediacom Tbk's ROC % is 4.84% (calculated using TTM income statement data). PT Global Mediacom Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PT Global Mediacom Tbk ROC % Historical Data

The historical data trend for PT Global Mediacom Tbk'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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PT Global Mediacom Tbk ROC % Chart

PT Global Mediacom Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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11.61

8.83

10.55

8.08

4.69

PT Global Mediacom Tbk Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															8.94	3.17	-2.24	10.45	9.62

PT Global Mediacom Tbk ROC % Calculation

PT Global Mediacom Tbk'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 )
=	92.963 * ( 1 - 1.74% )	/	( (1993.174	+	1905.587)	/ 2 )
=	91.3454438	/	1949.3805
=	4.69 %

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	))
=	2155.051	-	67.353	-	( 94.524	-	max(0, 298.797	-	656.49	+	94.524	))
=	1993.174

	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	))
=	2097.887	-	38.797	-	( 153.503	-	max(0, 263.339	-	709.207	+	153.503	))
=	1905.587

PT Global Mediacom Tbk's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	214.376 * ( 1 - 15.08% )	/	( (1905.587	+	1880.196)	/ 2 )
=	182.0480992	/	1892.8915
=	9.62 %

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	))
=	2097.887	-	38.797	-	( 153.503	-	max(0, 263.339	-	709.207	+	153.503	))
=	1905.587

	Invested Capital		(Q: Mar. 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	))
=	2113.646	-	34.741	-	( 198.709	-	max(0, 252.451	-	781.292	+	198.709	))
=	1880.196

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

PT Global Mediacom Tbk (STU:06L) 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, PT Global Mediacom Tbk's WACC % is 8.12%. PT Global Mediacom Tbk's ROC % is 4.84% (calculated using TTM income statement data). PT Global Mediacom Tbk 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.

PT Global Mediacom Tbk ROC % Related Terms

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PT Global Mediacom Tbk (STU:06L) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » PT Global Mediacom Tbk (STU:06L) » Definitions » ROC %

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PTGOF:USA BMTR:Indonesia

Address

Jl. Kebon Sirih Kav. 17 - 19, MNC Tower, 27th Floor, Jakarta Pusat, IDN, 1034

Website

https://www.mediacom.co.id

PT Global Mediacom Tbk is a diversified media company, primarily operating in the entertainment industry. The company operates in two business segments: advertising and content, pay TV, and broadband. Its largest segment, advertising, and content, provides advertisement-based media, subscriber-based media, and free-to-air media content. The pay-TV and broadband segment distributes television channels and has other businesses, such as radio and print media. The other business segment creates mobile app games, among many other ventures. The company generates the vast majority of its revenue in Indonesia.

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