Ausupreme International Holdings (HKSE:02031) ROIC % : 24.77% (As of Sep. 2023)

Ausupreme International Holdings ROIC % Chart

Ausupreme International Holdings Annual Data
	Trend	Mar14	Mar15	Mar16	Mar17	Mar18	Mar19	Mar20	Mar21	Mar22	Mar23
ROIC %		Get a 7-Day Free Trial					37.34	12.93	-3.34	-1.11	0.28

Ausupreme International Holdings Semi-Annual Data
	Mar14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROIC %	Get a 7-Day Free Trial														4.42	-1.53	0.10	0.66	24.77

Competitive Comparison of Ausupreme International Holdings's ROIC %

For the Household & Personal Products subindustry, Ausupreme 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.

Ausupreme International Holdings's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Ausupreme International Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Ausupreme International Holdings's ROIC % falls into.

Ausupreme International Holdings ROIC % Calculation

Ausupreme International Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

where

Ausupreme International Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

where

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

Ausupreme International Holdings  (HKSE:02031) 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, Ausupreme International Holdings's WACC % is 3.56%. Ausupreme International Holdings's ROIC % is 13.76% (calculated using TTM income statement data). Ausupreme International Holdings 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. Ausupreme International Holdings 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.

Ausupreme International Holdings ROIC % Related Terms

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Ausupreme International Holdings (HKSE:02031) Business Description