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STC Concrete Product (BKK:STC) ROIC % : 4.79% (As of Sep. 2024)


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What is STC Concrete Product 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 %. STC Concrete Product's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 4.79%.

As of today (2024-12-14), STC Concrete Product's WACC % is 4.83%. STC Concrete Product's ROIC % is 2.37% (calculated using TTM income statement data). STC Concrete Product earns returns that do not match up to its cost of capital. It will destroy value as it grows.


STC Concrete Product ROIC % Historical Data

The historical data trend for STC Concrete Product'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.

STC Concrete Product ROIC % Chart

STC Concrete Product Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial 6.80 3.60 1.33 1.26 2.75

STC Concrete Product Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 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 0.88 0.65 0.49 2.14 4.79

Competitive Comparison of STC Concrete Product's ROIC %

For the Building Materials subindustry, STC Concrete Product'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.


STC Concrete Product's ROIC % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, STC Concrete Product's ROIC % distribution charts can be found below:

* The bar in red indicates where STC Concrete Product's ROIC % falls into.



STC Concrete Product ROIC % Calculation

STC Concrete Product'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 )
=22.536 * ( 1 - 16.29% )/( (614.928 + 754.807)/ 2 )
=18.8648856/684.8675
=2.75 %

where

STC Concrete Product'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 )
=38.604 * ( 1 - 2.05% )/( (779.902 + 799.212)/ 2 )
=37.812618/789.557
=4.79 %

where

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.


STC Concrete Product  (BKK:STC) 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, STC Concrete Product's WACC % is 4.83%. STC Concrete Product's ROIC % is 2.37% (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.


STC Concrete Product ROIC % Related Terms

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STC Concrete Product Business Description

Traded in Other Exchanges
Address
220/26 Moo 6, Sukhumvit Road, Nakluea Subdistrict, Banglamung District, Chonburi Province, Pattaya, THA, 20150
STC Concrete Product PLC is engaged in the production and distribution of precast concrete products under the trademark STC CONCRETE. Its products portfolio includes ready mixed concrete, concrete drainage pipes, precast concrete slabs, prestressed concrete pile, lightweight gray brick block, and prefabricated fence panels. The company operates in only one reportable segment that is manufacture and sales of ready-mixed concrete and aggregate and the single geographical area of its operations in Thailand.