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APWC (Asia Pacific Wire & Cable) ROIC % : 3.25% (As of Sep. 2024)


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What is Asia Pacific Wire & Cable ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Asia Pacific Wire & Cable's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 3.25%.

As of today (2024-12-11), Asia Pacific Wire & Cable's WACC % is 3.66%. Asia Pacific Wire & Cable's ROIC % is 2.32% (calculated using TTM income statement data). Asia Pacific Wire & Cable earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Asia Pacific Wire & Cable ROIC % Historical Data

The historical data trend for Asia Pacific Wire & Cable's ROIC % 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.

Asia Pacific Wire & Cable ROIC % Chart

Asia Pacific Wire & Cable Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.06 1.81 -1.78 2.10 1.58

Asia Pacific Wire & Cable Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Jun20 Sep20 Dec20 Jun21 Sep21 Dec21 Jun22 Sep22 Dec22 Jun23 Sep23 Dec23 Jun24 Sep24
ROIC % 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 - 4.16 5.45 - 3.25

Competitive Comparison of Asia Pacific Wire & Cable's ROIC %

For the Electrical Equipment & Parts subindustry, Asia Pacific Wire & Cable's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Asia Pacific Wire & Cable's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Asia Pacific Wire & Cable's ROIC % distribution charts can be found below:

* The bar in red indicates where Asia Pacific Wire & Cable's ROIC % falls into.



Asia Pacific Wire & Cable ROIC % Calculation

Asia Pacific Wire & Cable's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=5.9 * ( 1 - 34.91% )/( (236.518 + 251.117)/ 2 )
=3.84031/243.8175
=1.58 %

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))
=371.019 - 80.445 - ( 54.056 - max(0, 133.599 - 299.525+54.056))
=236.518

Asia Pacific Wire & Cable's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=11.46 * ( 1 - 27.57% )/( (249.171 + 261.993)/ 2 )
=8.300478/255.582
=3.25 %

where

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))
=349.961 - 67.123 - ( 33.667 - max(0, 127.857 - 282.499+33.667))
=249.171

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))
=361.343 - 64.947 - ( 34.403 - max(0, 116.643 - 287.872+34.403))
=261.993

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.


Asia Pacific Wire & Cable  (NAS:APWC) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Asia Pacific Wire & Cable's WACC % is 3.66%. Asia Pacific Wire & Cable's ROIC % is 2.32% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


Asia Pacific Wire & Cable ROIC % Related Terms

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Asia Pacific Wire & Cable Business Description

Traded in Other Exchanges
N/A
Address
Dunhua South Road, 15th Floor, B, No. 77, Section. 2, Taipei, TWN, 106
Asia Pacific Wire & Cable Corp Ltd is a holding company. It is principally engaged in owning operating companies engaged in the power cable, telecommunication cable, enameled wire, and electronic cable industry. It also provides project engineering services to customers. Some of the company's products are Bare wires, Power cables, Communication cables, Electronic wires & cables, and Enamelled wires. The company's geographical segments are North Asia, Thailand, and Rest of the World.
Executives
Msd Capital L P 10 percent owner 1 VANDERBILT AVENUE, 26TH FLOOR, NEW YORK NY 10017-5407
Sof Investments Lp 10 percent owner