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PT United Tractors Tbk (FRA:UTY) ROIC % : 19.97% (As of Sep. 2024)


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What is PT United Tractors 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 United Tractors Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 19.97%.

As of today (2024-12-14), PT United Tractors Tbk's WACC % is 13.91%. PT United Tractors Tbk's ROIC % is 20.92% (calculated using TTM income statement data). PT United Tractors Tbk 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.


PT United Tractors Tbk ROIC % Historical Data

The historical data trend for PT United Tractors 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 United Tractors Tbk ROIC % Chart

PT United Tractors Tbk Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 16.40 8.68 16.90 32.07 25.56

PT United Tractors Tbk Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 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 Premium Member Only Premium Member Only Premium Member Only 17.32 24.17 19.36 20.20 19.97

Competitive Comparison of PT United Tractors Tbk's ROIC %

For the Other Industrial Metals & Mining subindustry, PT United Tractors 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 United Tractors Tbk's ROIC % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, PT United Tractors Tbk's ROIC % distribution charts can be found below:

* The bar in red indicates where PT United Tractors Tbk's ROIC % falls into.



PT United Tractors Tbk ROIC % Calculation

PT United Tractors 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 )
=1768.041 * ( 1 - 22.95% )/( (4469.392 + 6188.151)/ 2 )
=1362.2755905/5328.7715
=25.56 %

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))
=8429.943 - 1746.664 - ( 2297.231 - max(0, 2522.618 - 4736.505+2297.231))
=4469.392

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))
=9162.163 - 1966.476 - ( 1007.536 - max(0, 2560.075 - 3727.668+1007.536))
=6188.151

PT United Tractors 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 )
=1700.312 * ( 1 - 22.59% )/( (6587.611 + 6596.567)/ 2 )
=1316.2115192/6592.089
=19.97 %

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))
=10008.269 - 1980.833 - ( 1439.825 - max(0, 2756.719 - 4197.925+1439.825))
=6587.611

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))
=9866.762 - 1940.871 - ( 1329.324 - max(0, 2843.086 - 4189.13+1329.324))
=6596.567

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 United Tractors Tbk  (FRA:UTY) 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 United Tractors Tbk's WACC % is 13.91%. PT United Tractors Tbk's ROIC % is 20.92% (calculated using TTM income statement data). PT United Tractors Tbk 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. PT United Tractors Tbk 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.


PT United Tractors Tbk ROIC % Related Terms

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PT United Tractors Tbk Business Description

Traded in Other Exchanges
Address
Jalan Raya Bekasi Km. 22, Cakung, Jakarta Timur, Jakarta, IDN, 13910
PT United Tractors Tbk is one of the distributors of heavy equipment in Indonesia. It manufactures construction machinery and provides mining services to help customers tap natural resources. The machinery is distributed under various brands and works in the mining, construction, forestry, material handling, and transportation sectors. The company operates contact centers to deliver spare parts, mechanics support, and repair machines for customers. United Tractors operates five business segments: construction machinery, mining contracting (a majority of total revenues), mining, Construction Industry, and Energy. The majority of total sales are generated in Indonesia.

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