Salamis Tours (Holdings) Public (CYS:SAL) ROIC % : 38.99% (As of Dec. 2023)

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What is Salamis Tours (Holdings) Public 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 %. Salamis Tours (Holdings) Public's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 38.99%.

As of today (2024-06-08), Salamis Tours (Holdings) Public's WACC % is 10.47%. Salamis Tours (Holdings) Public's ROIC % is 38.92% (calculated using TTM income statement data). Salamis Tours (Holdings) Public 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.

Salamis Tours (Holdings) Public ROIC % Historical Data

The historical data trend for Salamis Tours (Holdings) Public'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.

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Salamis Tours (Holdings) Public ROIC % Chart

Salamis Tours (Holdings) Public Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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24.12

19.99

29.96

46.70

38.92

Salamis Tours (Holdings) Public Semi-Annual Data
	Dec15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial											27.05	49.13	45.61	38.87	38.99

Competitive Comparison of Salamis Tours (Holdings) Public's ROIC %

For the Travel Services subindustry, Salamis Tours (Holdings) Public'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.

Salamis Tours (Holdings) Public's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Salamis Tours (Holdings) Public's ROIC % distribution charts can be found below:

* The bar in red indicates where Salamis Tours (Holdings) Public's ROIC % falls into.

Salamis Tours (Holdings) Public ROIC % Calculation

Salamis Tours (Holdings) Public'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 )
=	13.316 * ( 1 - 6.47% )	/	( (28.233	+	35.766)	/ 2 )
=	12.4544548	/	31.9995
=	38.92 %

where

	Invested Capital		(A: Dec. 2022 )
=	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	))
=	73.131	-	6.707	-	( 39.879	-	max(0, 7.803	-	45.994	+	39.879	))
=	28.233

	Invested Capital		(A: Dec. 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	))
=	83.999	-	7.676	-	( 42.913	-	max(0, 8.95	-	49.507	+	42.913	))
=	35.766

Salamis Tours (Holdings) Public's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	14.07 * ( 1 - 6.13% )	/	( (31.989	+	35.766)	/ 2 )
=	13.207509	/	33.8775
=	38.99 %

where

	Invested Capital		(Q: Jun. 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	))
=	81.912	-	13.364	-	( 42.868	-	max(0, 13.461	-	50.02	+	42.868	))
=	31.989

	Invested Capital		(Q: Dec. 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	))
=	83.999	-	7.676	-	( 42.913	-	max(0, 8.95	-	49.507	+	42.913	))
=	35.766

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Salamis Tours (Holdings) Public (CYS:SAL) 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, Salamis Tours (Holdings) Public's WACC % is 10.47%. Salamis Tours (Holdings) Public's ROIC % is 38.92% (calculated using TTM income statement data). Salamis Tours (Holdings) Public 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. Salamis Tours (Holdings) Public 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.

Salamis Tours (Holdings) Public ROIC % Related Terms

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Salamis Tours (Holdings) Public (CYS:SAL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Salamis Tours (Holdings) Public Ltd (CYS:SAL) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1, G. Katsounotos Street, P.O.Box 50531, Salamis House, Limassol, CYP, 3607

Website

http://www.salamistours.com

Salamis Tours (Holdings) Public Ltd provides cruise shipping services. It is engaged in providing cruise, travel, tourism, shipping, and transportation services.