ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Sunshine Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 18.51%.
As of today (2024-09-27), Sunshine Holdings's WACC % is 8.95%. Sunshine Holdings's ROIC % is 22.37% (calculated using TTM income statement data).
Sunshine Holdings 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.
Sunshine Holdings ROIC % Historical Data
The historical data trend for Sunshine Holdings'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 Sunshine Holdings's ROIC %
For the Conglomerates subindustry, Sunshine Holdings'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.
Sunshine Holdings's ROIC % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Sunshine Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Sunshine Holdings's ROIC % falls into.
Sunshine Holdings ROIC % Calculation
Sunshine Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2024 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (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.
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, Sunshine Holdings's WACC % is 8.95%. Sunshine Holdings's ROIC % is 22.37% (calculated using TTM income statement data).
Sunshine Holdings 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.
Sunshine Holdings 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.
Sunshine Holdings ROIC % Related Terms
Thank you for viewing the detailed overview of Sunshine Holdings's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Sunshine Holdings PLC, through its subsidiaries, mainly operates in the following segments: Healthcare, Agribusiness, Consumer Goods, Investment, Energy, Rental business, and Management service. The maximum revenue for the company is generated from the healthcare segment which is engaged in manufacturing, importing, and marketing pharmaceuticals, nutraceuticals, medical diagnostic equipment, and surgical products The company's geographical segments include Sri Lanka, China, Singapore, Japan, and other countries, out of which the majority of the revenue is generated from Sri Lanka.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
COL:SUN.N0000 has been successfully added to your 