Fab-Form Industries (TSXV:FBF) ROC % : 14.65% (As of Dec. 2024)

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What is Fab-Form Industries 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 %. Fab-Form Industries's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 14.65%.

As of today (2025-03-25), Fab-Form Industries's WACC % is 2.27%. Fab-Form Industries's ROC % is 31.27% (calculated using TTM income statement data). Fab-Form Industries 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.

Fab-Form Industries ROC % Historical Data

The historical data trend for Fab-Form Industries'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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Fab-Form Industries ROC % Chart

Fab-Form Industries Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Jun23

Jun24

ROC %

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23.26

55.28

72.97

32.25

Fab-Form Industries Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															27.64	10.27	41.47	53.70	14.65

Fab-Form Industries ROC % Calculation

Fab-Form Industries's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	0.887 * ( 1 - 27.72% )	/	( (1.905	+	2.071)	/ 2 )
=	0.6411236	/	1.988
=	32.25 %

where

	Invested Capital		(A: 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	))
=	5.204	-	0.244	-	( 3.055	-	max(0, 0.374	-	4.557	+	3.055	))
=	1.905

	Invested Capital		(A: 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	))
=	6.058	-	0.394	-	( 3.593	-	max(0, 0.532	-	5.333	+	3.593	))
=	2.071

Fab-Form Industries's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	0.328 * ( 1 - 25.48% )	/	( (1.608	+	1.728)	/ 2 )
=	0.2444256	/	1.668
=	14.65 %

where

	Invested Capital		(Q: Sep. 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	))
=	6.388	-	0.481	-	( 4.299	-	max(0, 0.599	-	5.6	+	4.299	))
=	1.608

	Invested Capital		(Q: Dec. 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	))
=	6.489	-	0.49	-	( 4.271	-	max(0, 0.608	-	5.664	+	4.271	))
=	1.728

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

Fab-Form Industries (TSXV:FBF) 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, Fab-Form Industries's WACC % is 2.27%. Fab-Form Industries's ROC % is 31.27% (calculated using TTM income statement data). Fab-Form Industries 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.

Fab-Form Industries ROC % Related Terms

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Fab-Form Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Fab-Form Industries Ltd (TSXV:FBF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

FABFF:USA

Address

1610 Derwent Way, Unit 19, Delta, BC, CAN, V3M 6W1

Website

https://www.fab-form.com

Fab-Form Industries Ltd is a Canadian based company that develops, manufactures and distributes proprietary technology to form concrete footings, columns, foundations and walls for building structures. The company also distributes Helix micro rebar into the BC market and Nudura insulating concrete form into the Lower Mainland of BC market.

Executives

Richard Neil Fearn	Director, Director or Senior Officer of 10% Security Holder, Senior Officer
Nigel Peter Protter	Director
John Rodway Hoffmeister	Deemed Insider - 6 Months before becoming Insider

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