ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Pegasus International Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -0.14%.
As of today (2024-12-11), Pegasus International Holdings's WACC % is 5.26%. Pegasus International Holdings's ROIC % is -0.35% (calculated using TTM income statement data).
Pegasus International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Pegasus International Holdings ROIC % Historical 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.
Competitive Comparison of Pegasus International Holdings's ROIC %
For the Footwear & Accessories subindustry, Pegasus International 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.
Pegasus International Holdings's ROIC % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Pegasus International Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Pegasus International Holdings's ROIC % falls into.
Pegasus International Holdings ROIC % Calculation
Pegasus International Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (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.
Pegasus International Holdings (HKSE:00676) 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, Pegasus International Holdings's WACC % is 5.26%. Pegasus International Holdings's ROIC % is -0.35% (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.
Pegasus International Holdings ROIC % Related Terms
Thank you for viewing the detailed overview of Pegasus International Holdings's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Pegasus International Holdings Business Description
Pegasus International Holdings Ltd is an investment holding company. The group is engaged in the segment manufacture and sale of footwear products and leasing of investment properties to generate operating lease income. The majority of revenue is derived from the manufacture and sale of footwear products. Geographically the business is spread across the United States, Japan, and other regions. Its footwear categories include Safety shoes, Goodyear Welt, and Direct Attach Injected Dual Density PU/Rubber, PU/TPU, and PU/ PU. Its product line includes men's shoes, Women's shoes, and Child's shoes, Fashion casual shoes, Outdoor casual shoes, Hiking boots, Snowboard boots, Skateboard shoes, Aqua sports shoes, Athletic shoes, Sports sandals, and Golf shoes, among others.
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