ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Frankland River Olive Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2015 was 0.46%.
As of today (2026-06-27), Frankland River Olive Co's WACC % is 10.70%. Frankland River Olive Co's ROIC % is -51.80% (calculated using TTM income statement data).
Frankland River Olive Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Frankland River Olive Co (ASX:FLR) 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, Frankland River Olive Co's WACC % is 10.70%. Frankland River Olive Co's ROIC % is -51.80% (calculated using TTM income statement data).
Frankland River Olive Co 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 %, 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.
* 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.
Frankland River Olive Co ROIC % Competitor Comparison
For the Farm Products subindustry, Frankland River Olive Co'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.
Frankland River Olive Co ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Frankland River Olive Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Frankland River Olive Co's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2015) data.
The tax rate is limited to between 0% and 100%.
* 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.
Frankland River Olive Co (ASX:FLR) has a ROIC % of 0.46% as of Dec. 2015. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Frankland River Olive Co and its competitors.
Is Frankland River Olive Co's ROIC % too high?
Frankland River Olive Co's current ROIC % is 0.46%. The Consumer Packaged Goods industry median ROIC % is 5.14. Frankland River Olive Co's value of 0.46% is 91.1% below this industry median.
How does Frankland River Olive Co's ROIC % compare to competitors?
Frankland River Olive Co's ROIC % of 0.46% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.14. Frankland River Olive Co's value of 0.46% is 91.1% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.14, based on 1,948 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Frankland River Olive Co's current ROIC % of 0.46% is 91.1% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Frankland River Olive Co and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frankland River Olive Co's current ROIC % is 0.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frankland River Olive Co stock overvalued right now?
Frankland River Olive Co (ASX:FLR) has a current ROIC % of 0.46%. The current ROIC % is 0.46% and 91.1% below the Consumer Packaged Goods industry median of 5.14. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Frankland River Olive Co (ASX:FLR), the current ROIC % is 0.46% as of Dec. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Frankland River Olive Co Ltd was established in 1999. The Company is engaged in growing, harvesting, processing and sale of extra virgin olive oil for Australian and international markets.
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