ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Star Combo Pharma's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -1.45%.
As of today (2024-12-12), Star Combo Pharma's WACC % is 7.14%. Star Combo Pharma's ROIC % is -0.24% (calculated using TTM income statement data).
Star Combo Pharma earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Star Combo Pharma ROIC % Historical Data
The historical data trend for Star Combo Pharma'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.
Competitive Comparison of Star Combo Pharma's ROIC %
For the Household & Personal Products subindustry, Star Combo Pharma'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.
Star Combo Pharma's ROIC % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Star Combo Pharma's ROIC % distribution charts can be found below:
* The bar in red indicates where Star Combo Pharma's ROIC % falls into.
Star Combo Pharma ROIC % Calculation
Star Combo Pharma's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2024 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Jun. 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.
Star Combo Pharma (ASX:S66) 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, Star Combo Pharma's WACC % is 7.14%. Star Combo Pharma's ROIC % is -0.24% (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.
Star Combo Pharma ROIC % Related Terms
Thank you for viewing the detailed overview of Star Combo Pharma's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Star Combo Pharma Ltd is engaged in the manufacturing and distribution of food products and nutritional supplements. The company offers products such as face masks, moisturizing creams, serums, concentrates, and oils. Star Combo Pharma markets its products. It operates in two segments. Star Combo segment engages in the development, manufacturing, marketing and sales of natural health supplements and skincare products. The Austoyou retail business segment has made up of the Australia-China e-commerce platform that offers product lines directly to Chinese health product consumers; and Koala Mall's two retail stores in Sydney. Geographically, it operates in China and Australia.
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