ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Mega Metalnayi ve Ticaret AS's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 0.06%.
As of today (2025-03-30), Mega Metalnayi ve Ticaret AS's WACC % is 11.15%. Mega Metalnayi ve Ticaret AS's ROIC % is 13.26% (calculated using TTM income statement data).
Mega Metalnayi ve Ticaret AS 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.
Mega Metalnayi ve Ticaret AS 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 Mega Metalnayi ve Ticaret AS's ROIC %
For the Electrical Equipment & Parts subindustry, Mega Metalnayi ve Ticaret AS'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.
Mega Metalnayi ve Ticaret AS's ROIC % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Mega Metalnayi ve Ticaret AS's ROIC % distribution charts can be found below:
* The bar in red indicates where Mega Metalnayi ve Ticaret AS's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Dec. 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.
Mega Metalnayi ve Ticaret AS (IST:MEGMT) 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, Mega Metalnayi ve Ticaret AS's WACC % is 11.15%. Mega Metalnayi ve Ticaret AS's ROIC % is 13.26% (calculated using TTM income statement data).
Mega Metalnayi ve Ticaret AS 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.
Mega Metalnayi ve Ticaret AS 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.
Mega Metalnayi ve Ticaret AS ROIC % Related Terms
Thank you for viewing the detailed overview of Mega Metalnayi ve Ticaret AS's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mega Metal Sanayi ve Ticaret AS is a company produces electrolytic copper wire with conductive properties for low current in its production facilities located in Kayseri OSB with an annual melting capacity of forty eight thousand tons. The copper wire that makes up the products produced by Mega Metal is in the form of oxygen-free electrolytic copper wire with low current sectors. The products produced by the company are produced as bare or tin alloyed. The product range is generally bare or tinned which consists of Mono Wire, Multi-Wire Products, Stranded Wires and Coil Wires. The products it produces are used in various sectors such as electrical, electronics, communications, energy, defense and automotive industries.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
IST:MEGMT has been successfully added to your 