GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Barem Ambalaj Sanayi Ve Ticaret (IST:BARMA) » Definitions » ROIC %

Barem Ambalajnayi Ve Ticaret (IST:BARMA) ROIC % : 3.96% (As of Mar. 2024)


View and export this data going back to 2022. Start your Free Trial

What is Barem Ambalajnayi Ve Ticaret 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 %. Barem Ambalajnayi Ve Ticaret's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 3.96%.

As of today (2024-06-23), Barem Ambalajnayi Ve Ticaret's WACC % is 9.74%. Barem Ambalajnayi Ve Ticaret's ROIC % is 9.15% (calculated using TTM income statement data). Barem Ambalajnayi Ve Ticaret earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Barem Ambalajnayi Ve Ticaret ROIC % Historical Data

The historical data trend for Barem Ambalajnayi Ve Ticaret'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.

Barem Ambalajnayi Ve Ticaret ROIC % Chart

Barem Ambalajnayi Ve Ticaret Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
27.27 29.18 30.79 29.03 6.79

Barem Ambalajnayi Ve Ticaret Quarterly Data
Dec19 Dec20 Mar21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 21.74 14.36 18.31 23.19 3.96

Competitive Comparison of Barem Ambalajnayi Ve Ticaret's ROIC %

For the Packaging & Containers subindustry, Barem Ambalajnayi Ve Ticaret'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.


Barem Ambalajnayi Ve Ticaret's ROIC % Distribution in the Packaging & Containers Industry

For the Packaging & Containers industry and Consumer Cyclical sector, Barem Ambalajnayi Ve Ticaret's ROIC % distribution charts can be found below:

* The bar in red indicates where Barem Ambalajnayi Ve Ticaret's ROIC % falls into.



Barem Ambalajnayi Ve Ticaret ROIC % Calculation

Barem Ambalajnayi Ve Ticaret'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 )
=253.985 * ( 1 - 25.04% )/( (2284.954 + 3323.38)/ 2 )
=190.387156/2804.167
=6.79 %

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))
=2784.838 - 121.201 - ( 378.683 - max(0, 760.874 - 1803.248+378.683))
=2284.954

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))
=3761.992 - 126.15 - ( 312.462 - max(0, 870.37 - 1349.095+312.462))
=3323.38

Barem Ambalajnayi Ve Ticaret's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

ROIC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=347.792 * ( 1 - 57.76% )/( (3323.38 + 4102.329)/ 2 )
=146.9073408/3712.8545
=3.96 %

where

Invested Capital(Q: 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))
=3761.992 - 126.15 - ( 312.462 - max(0, 870.37 - 1349.095+312.462))
=3323.38

Invested Capital(Q: Mar. 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))
=4418.036 - 161.638 - ( 154.069 - max(0, 1127.768 - 1370.259+154.069))
=4102.329

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


Barem Ambalajnayi Ve Ticaret  (IST:BARMA) 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, Barem Ambalajnayi Ve Ticaret's WACC % is 9.74%. Barem Ambalajnayi Ve Ticaret's ROIC % is 9.15% (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.


Barem Ambalajnayi Ve Ticaret ROIC % Related Terms

Thank you for viewing the detailed overview of Barem Ambalajnayi Ve Ticaret's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Barem Ambalajnayi Ve Ticaret (IST:BARMA) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
?bni Melek OSB Mahallesi TOSB? Yol 4, Sokak No 14, Izmir, TUR
Barem Ambalaj Sanayi Ve Ticaret provides packaging solutions. It serves food, electronics, hygiene, toys, textile, cosmetics, automotive, agriculture, and other sectors. The services are offered in both domestic and international market.

Barem Ambalajnayi Ve Ticaret (IST:BARMA) Headlines

No Headlines