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TOL Gases (DAR:TOL) ROIC % : 0.00% (As of . 20)


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What is TOL Gases 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 %. TOL Gases's annualized return on invested capital (ROIC %) for the quarter that ended in . 20 was 0.00%.

As of today (2024-12-13), TOL Gases's WACC % is 0.00%. TOL Gases's ROIC % is 0.00% (calculated using TTM income statement data). TOL Gases earns returns that do not match up to its cost of capital. It will destroy value as it grows.


TOL Gases ROIC % Historical Data

The historical data trend for TOL Gases'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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TOL Gases ROIC % Chart

TOL Gases Annual Data
Trend
ROIC %

TOL Gases Semi-Annual Data
ROIC %

Competitive Comparison of TOL Gases's ROIC %

For the Specialty Chemicals subindustry, TOL Gases'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.


TOL Gases's ROIC % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, TOL Gases's ROIC % distribution charts can be found below:

* The bar in red indicates where TOL Gases's ROIC % falls into.



TOL Gases ROIC % Calculation

TOL Gases's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in . 20 is calculated as:

ROIC % (A: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: . 20 ) + Invested Capital (A: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

TOL Gases's annualized Return on Invested Capital (ROIC %) for the quarter that ended in . 20 is calculated as:

ROIC % (Q: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: . 20 ) + Invested Capital (Q: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Note: The Operating Income data used here is one times the annual (. 20) 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.


TOL Gases  (DAR:TOL) 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, TOL Gases's WACC % is 0.00%. TOL Gases's ROIC % is 0.00% (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.


TOL Gases ROIC % Related Terms

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TOL Gases Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
4B Nyerere Road, P.O. Box 911, Plot No. 4, Dar es Salaam, TZA
TOL Gases Ltd is engaged in the manufacture and distribution of industrial gases, welding equipment, and medical gases, among others. It offers products such as oxygen, compressed air, argon, nitrogen, and ammonia.