Walmart Chile (XSGO:WMTCL) ROC % : 13.14% (As of Jun. 2016)

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What is Walmart Chile 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 %. Walmart Chile's annualized return on capital (ROC %) for the quarter that ended in Jun. 2016 was 13.14%.

As of today (2024-05-29), Walmart Chile's WACC % is 0.00%. Walmart Chile's ROC % is 0.00% (calculated using TTM income statement data). Walmart Chile earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Walmart Chile ROC % Historical Data

The historical data trend for Walmart Chile'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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Walmart Chile ROC % Chart

Walmart Chile Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROC %

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10.49

8.62

7.88

6.40

15.46

Walmart Chile Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
ROC %	Get a 7-Day Free Trial															16.50	34.45	9.76	6.63	13.14

Walmart Chile ROC % Calculation

Walmart Chile's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	223256.395 * ( 1 - -99.05% )	/	( (2810474.057	+	2938738.008)	/ 2 )
=	444391.8542475	/	2874606.0325
=	15.46 %

where

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	3186452.497	-	489155.757	-	( 112452.599	-	max(0, 925218.706	-	812041.389	+	112452.599	))
=	2810474.057

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	3554883.46	-	621339.652	-	( 94028.605	-	max(0, 1170704.622	-	1165510.422	+	94028.605	))
=	2938738.008

Walmart Chile's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2016 is calculated as:

	ROC % (Q: Jun. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2016 )	+	Invested Capital (Q: Jun. 2016 ))	/ count )
=	180348.196 * ( 1 - -110.84% )	/	( (2857930.079	+	2929750.703)	/ 2 )
=	380246.1364464	/	2893840.391
=	13.14 %

where

	Invested Capital		(Q: Mar. 2016 )
=	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	))
=	3509011.25	-	610185.208	-	( 53098.743	-	max(0, 1080510.143	-	1121406.106	+	53098.743	))
=	2857930.079

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	3542768.969	-	569604.121	-	( 69160.098	-	max(0, 1041331.333	-	1084745.478	+	69160.098	))
=	2929750.703

Note: The Operating Income data used here is four times the quarterly (Jun. 2016) data.

Walmart Chile (XSGO:WMTCL) 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, Walmart Chile's WACC % is 0.00%. Walmart Chile's ROC % is 0.00% (calculated using TTM income statement data). Walmart Chile 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.

Walmart Chile ROC % Related Terms

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Walmart Chile (XSGO:WMTCL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Walmart Chile SA (XSGO:WMTCL) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Av eduardo frei montalva 8301, Casilla, Santiago, CHL, 620

Website

http://www.walmartchile.cl

Walmart Chile SA is engaged in the operation of supermarkets. The company operates supermarkets under the brands lider, express lider, acuenta, ekono, central mayorista, and lider.cl. The firm also provides financial services which include offering financing to its customers through MasterCard and presto credit cards, requesting advances in cash, consumer loans, access to various products and services such as insurance, payment of accounts, and Real estate services which includes construction of new premises of the company and management of commercial premises that are part of company's supermarkets.

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