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PT Goto Gojek Tokopedia Tbk (FRA:CK8) ROIC % : -5.77% (As of Sep. 2024)


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What is PT Goto Gojek Tokopedia Tbk 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 %. PT Goto Gojek Tokopedia Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -5.77%.

As of today (2024-12-16), PT Goto Gojek Tokopedia Tbk's WACC % is 10.46%. PT Goto Gojek Tokopedia Tbk's ROIC % is -8.83% (calculated using TTM income statement data). PT Goto Gojek Tokopedia Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.


PT Goto Gojek Tokopedia Tbk ROIC % Historical Data

The historical data trend for PT Goto Gojek Tokopedia Tbk'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.

PT Goto Gojek Tokopedia Tbk ROIC % Chart

PT Goto Gojek Tokopedia Tbk Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial -146.95 -65.81 -32.61 -25.27 -14.99

PT Goto Gojek Tokopedia Tbk Quarterly Data
Dec18 Dec19 Dec20 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 -9.86 -8.85 -14.93 -13.52 -5.77

Competitive Comparison of PT Goto Gojek Tokopedia Tbk's ROIC %

For the Software - Infrastructure subindustry, PT Goto Gojek Tokopedia Tbk'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.


PT Goto Gojek Tokopedia Tbk's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, PT Goto Gojek Tokopedia Tbk's ROIC % distribution charts can be found below:

* The bar in red indicates where PT Goto Gojek Tokopedia Tbk's ROIC % falls into.



PT Goto Gojek Tokopedia Tbk ROIC % Calculation

PT Goto Gojek Tokopedia Tbk'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 )
=-611.431 * ( 1 - 0.13% )/( (6589.965 + 1557.195)/ 2 )
=-610.6361397/4073.58
=-14.99 %

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))
=8354.233 - 442.991 - ( 1756.777 - max(0, 729.856 - 2051.133+1756.777))
=6589.965

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))
=3217.902 - 423.76 - ( 1651.167 - max(0, 762.732 - 1999.679+1651.167))
=1557.195

PT Goto Gojek Tokopedia Tbk's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-77.052 * ( 1 - 0.62% )/( (1348.827 + 1305.335)/ 2 )
=-76.5742776/1327.081
=-5.77 %

where

Invested Capital(Q: Jun. 2024 )
=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))
=2759.2 - 253.066 - ( 1338.052 - max(0, 573.152 - 1730.459+1338.052))
=1348.827

Invested Capital(Q: Sep. 2024 )
=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))
=2606.88 - 229.319 - ( 1248.719 - max(0, 547.214 - 1619.44+1248.719))
=1305.335

Note: The Operating Income data used here is four times the quarterly (Sep. 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.


PT Goto Gojek Tokopedia Tbk  (FRA:CK8) 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, PT Goto Gojek Tokopedia Tbk's WACC % is 10.46%. PT Goto Gojek Tokopedia Tbk's ROIC % is -8.83% (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.


PT Goto Gojek Tokopedia Tbk ROIC % Related Terms

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PT Goto Gojek Tokopedia Tbk Business Description

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Traded in Other Exchanges
Address
Jalan Iskandarsyah II No. 2, Gedung Pasaraya Blok M, 6-7th Floor, Jakarta, IDN, 12160
GoTo is an Indonesian ecosystem that combines ride-hailing, delivery, and financial services under one app. The company operates primarily in Indonesia and is the product of a merger between Gojek and Tokopedia in May 2021, but recently divested the e-commerce business into a combined entity with TikTok Indonesia in 2024. Looking ahead, we expect the on-demand service to account for the majority of revenue while its financial services begin to ramp. Prior to the deconsolidation, 82% of nonfinancial services gross transactional value came from e-commerce, and the firm will begin to expand into financial services such as providing loans and buy now, pay later programs. The company competes with Grab in the ride-hailing and delivery business, and Sea and Lazada for e-commerce.

PT Goto Gojek Tokopedia Tbk Headlines

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