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ME Group International (CHIX:MEGPL) ROIC % : 23.19% (As of Apr. 2024)


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What is ME Group International 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 %. ME Group International's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2024 was 23.19%.

As of today (2024-12-14), ME Group International's WACC % is 8.79%. ME Group International's ROIC % is 28.93% (calculated using TTM income statement data). ME Group International generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


ME Group International ROIC % Historical Data

The historical data trend for ME Group International'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.

ME Group International ROIC % Chart

ME Group International Annual Data
Trend Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Oct21 Oct22 Oct23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.56 18.98 22.49 20.55 26.72

ME Group International Semi-Annual Data
Oct13 Apr14 Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24
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 23.05 21.99 22.16 33.52 23.19

Competitive Comparison of ME Group International's ROIC %

For the Business Equipment & Supplies subindustry, ME Group International'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.


ME Group International's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, ME Group International's ROIC % distribution charts can be found below:

* The bar in red indicates where ME Group International's ROIC % falls into.



ME Group International ROIC % Calculation

ME Group International's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Oct. 2023 is calculated as:

ROIC % (A: Oct. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Oct. 2022 ) + Invested Capital (A: Oct. 2023 ))/ count )
=70.514 * ( 1 - 24.45% )/( (190.304 + 208.419)/ 2 )
=53.273327/199.3615
=26.72 %

where

Invested Capital(A: Oct. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=332.522 - 57.799 - ( 111.091 - max(0, 102.458 - 168.762+111.091))
=208.419

ME Group International's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Apr. 2024 is calculated as:

ROIC % (Q: Apr. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Apr. 2024 ))/ count )
=60.55 * ( 1 - 24.49% )/( (208.419 + 185.836)/ 2 )
=45.721305/197.1275
=23.19 %

where

Invested Capital(Q: Oct. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=332.522 - 57.799 - ( 111.091 - max(0, 102.458 - 168.762+111.091))
=208.419

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


ME Group International  (CHIX:MEGPl) 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, ME Group International's WACC % is 8.79%. ME Group International's ROIC % is 28.93% (calculated using TTM income statement data). ME Group International generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. ME Group International 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.


ME Group International ROIC % Related Terms

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ME Group International Business Description

Traded in Other Exchanges
Address
Blenheim Road, Unit 3B, Epsom, London, Surrey, GBR, KT19 9AP
ME Group International PLC operates, sells and services a wide range of instant-service vending equipment, aimed at the consumer market. The group operates vending units across 20 countries and its technological innovation is focused on four principal areas namely Photobooths and integrated biometric identification solutions; Unattended laundry services and launderettes; High-quality digital printigg kiosks and Vending equipment for the food service market. Geographically, the company reports its segments and operates in UK & Republic of Ireland, Asia Pacific and Continental Europe, which is the majority revenue generator.

ME Group International Headlines

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