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Tata Steel Thailand PCL (STU:MVX) ROC % : -4.71% (As of Sep. 2024)


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What is Tata Steel Thailand PCL 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 %. Tata Steel Thailand PCL's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -4.71%.

As of today (2024-12-14), Tata Steel Thailand PCL's WACC % is 7.65%. Tata Steel Thailand PCL's ROC % is -2.22% (calculated using TTM income statement data). Tata Steel Thailand PCL earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Tata Steel Thailand PCL ROC % Historical Data

The historical data trend for Tata Steel Thailand PCL'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.

Tata Steel Thailand PCL ROC % Chart

Tata Steel Thailand PCL Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.24 6.64 23.34 5.98 -2.03

Tata Steel Thailand PCL Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -2.28 -3.89 -2.81 2.03 -4.71

Tata Steel Thailand PCL ROC % Calculation

Tata Steel Thailand PCL's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=-6.224 * ( 1 - -3.75% )/( (337.336 + 297.568)/ 2 )
=-6.4574/317.452
=-2.03 %

where

Tata Steel Thailand PCL's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-15.428 * ( 1 - 0.44% )/( (313.182 + 339.388)/ 2 )
=-15.3601168/326.285
=-4.71 %

where

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


Tata Steel Thailand PCL  (STU:MVX) 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, Tata Steel Thailand PCL's WACC % is 7.65%. Tata Steel Thailand PCL's ROC % is -2.22% (calculated using TTM income statement data). Tata Steel Thailand PCL 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.


Tata Steel Thailand PCL ROC % Related Terms

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Tata Steel Thailand PCL Business Description

Traded in Other Exchanges
Address
555 Phaholyothin Road, Rasa Tower 2, 20th Floor, Chatuchak Sub-district, Chatuchak District, Bangkok, THA, 10900
Tata Steel Thailand PCL is a Thailand-based holding company which is engaged in investing in other companies and providing management services. It is engaged in manufacturing, rendering manufacturing services, distributing and trading of steel bars, wire rods, and small-section products through its subsidiaries. The company operates in a single segment being the Manufacturing and distribution of long steel products. The product line of the company includes rebar, deformed bar, round bar, seismic bar, cut and bend bars, wire roads including high carbon wire rods and low carbon, special wire rods, and others.

Tata Steel Thailand PCL Headlines

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