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Timah Resources (ASX:TML) ROIC % : 1.59% (As of Dec. 2024)


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What is Timah Resources 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 %. Timah Resources's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 1.59%.

As of today (2025-03-17), Timah Resources's WACC % is 5.78%. Timah Resources's ROIC % is 1.84% (calculated using TTM income statement data). Timah Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Timah Resources ROIC % Historical Data

The historical data trend for Timah Resources'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.

Timah Resources ROIC % Chart

Timah Resources Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Dec20 Dec21 Dec22 Dec23 Dec24
ROIC %
Get a 7-Day Free Trial Premium Member Only 3.87 -2.03 -54.72 -3.29 1.98

Timah Resources Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
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 44.51 -1.38 -6.95 0.82 1.59

Competitive Comparison of Timah Resources's ROIC %

For the Utilities - Renewable subindustry, Timah Resources'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.


Timah Resources's ROIC % Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Timah Resources's ROIC % distribution charts can be found below:

* The bar in red indicates where Timah Resources's ROIC % falls into.



Timah Resources ROIC % Calculation

Timah Resources's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROIC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=0.181 * ( 1 - -62.96% )/( (15.048 + 14.746)/ 2 )
=0.2949576/14.897
=1.98 %

where

Timah Resources's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2024 is calculated as:

ROIC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=0.168 * ( 1 - -40.8% )/( (15.036 + 14.746)/ 2 )
=0.236544/14.891
=1.59 %

where

Note: The Operating Income data used here is two times the semi-annual (Dec. 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.


Timah Resources  (ASX:TML) 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, Timah Resources's WACC % is 5.78%. Timah Resources's ROIC % is 1.84% (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.


Timah Resources ROIC % Related Terms

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Timah Resources Business Description

Traded in Other Exchanges
N/A
Address
348 Pacific Highway, Crows Nest, Sydney, NSW, AUS, 2065
Timah Resources Ltd engages in the generation of renewable energy power. It focuses on generating energy to meet the needs of society sustainably. Its projects include Biogas Power Generation Plant which it operates through its subsidiary in Malaysia. The Plant uses Palm Oil Mill Effluent to produce Methane Gas, used as fuel to run Gas Engines to generate green and renewable energy.

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