ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Vanachai Group PCL's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2025 was 2.45%.
As of today (2025-07-24), Vanachai Group PCL's WACC % is 4.48%. Vanachai Group PCL's ROIC % is 0.83% (calculated using TTM income statement data).
Vanachai Group PCL earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Vanachai Group PCL ROIC % Historical Data
The historical data trend for Vanachai Group PCL'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 Vanachai Group PCL's ROIC %
For the Lumber & Wood Production subindustry, Vanachai Group PCL'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.
Vanachai Group PCL's ROIC % Distribution in the Forest Products Industry
For the Forest Products industry and Basic Materials sector, Vanachai Group PCL's ROIC % distribution charts can be found below:
* The bar in red indicates where Vanachai Group PCL's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2025) 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.
Vanachai Group PCL (BKK:VNG-R) 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, Vanachai Group PCL's WACC % is 4.48%. Vanachai Group PCL's ROIC % is 0.83% (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.
Vanachai Group PCL ROIC % Related Terms
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Vanachai Group PCL is a Thailand-based company. The principal activities of the Company and its subsidiaries involve the production and distribution of wood plates, MDF boards, Particle boards, Doorskin, and Malamine on wood plates. The company creates wood-based goods such as particleboards, medium-density fiberboards (MDF boards), Doorskin, and melamine laminated particleboards, which are distributed to both domestic and international markets. Vanachai also sells finished products that include melamine doors, door frames, resins, formaldehyde adhesives, and finished flooring. The company generates the vast majority of its revenue in Thailand.
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