PT Greenwood Sejahtera Tbk (ISX:GWSA) ROIC % : -0.56% (As of Jun. 2024)

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What is PT Greenwood Sejahtera 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 Greenwood Sejahtera Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -0.56%.

As of today (2024-09-27), PT Greenwood Sejahtera Tbk's WACC % is 8.63%. PT Greenwood Sejahtera Tbk's ROIC % is -0.63% (calculated using TTM income statement data). PT Greenwood Sejahtera Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PT Greenwood Sejahtera Tbk ROIC % Historical Data

The historical data trend for PT Greenwood Sejahtera 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.

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PT Greenwood Sejahtera Tbk ROIC % Chart

PT Greenwood Sejahtera Tbk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-0.71

-0.84

-0.74

-0.79

-0.82

PT Greenwood Sejahtera Tbk Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROIC %	Get a 7-Day Free Trial															-1.33	-0.68	-0.47	-0.80	-0.56

Competitive Comparison of PT Greenwood Sejahtera Tbk's ROIC %

For the Real Estate - Development subindustry, PT Greenwood Sejahtera 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 Greenwood Sejahtera Tbk's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, PT Greenwood Sejahtera Tbk's ROIC % distribution charts can be found below:

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

PT Greenwood Sejahtera Tbk ROIC % Calculation

PT Greenwood Sejahtera 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 )
=	-62502.077 * ( 1 - 0.33% )	/	( (7692929.442	+	7529819.259)	/ 2 )
=	-62295.8201459	/	7611374.3505
=	-0.82 %

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	))
=	7788405.537	-	16670.411	-	( 78805.684	-	max(0, 94849.017	-	1452318.607	+	78805.684	))
=	7692929.442

	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	))
=	7869221.528	-	18227.094	-	( 321175.175	-	max(0, 148802.425	-	1755477.257	+	321175.175	))
=	7529819.259

PT Greenwood Sejahtera Tbk's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROIC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-42646.52 * ( 1 - 0% )	/	( (7551726.697	+	7585589.427)	/ 2 )
=	-42646.52	/	7568658.062
=	-0.56 %

where

	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	))
=	7885596.728	-	17940.131	-	( 315929.9	-	max(0, 145872.557	-	1767104.943	+	315929.9	))
=	7551726.697

	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	))
=	7796635.833	-	18471.585	-	( 192574.821	-	max(0, 167136.655	-	1677452.933	+	192574.821	))
=	7585589.427

Note: The Operating Income data used here is four times the quarterly (Jun. 2024) data.

PT Greenwood Sejahtera Tbk (ISX:GWSA) 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 Greenwood Sejahtera Tbk's WACC % is 8.63%. PT Greenwood Sejahtera Tbk's ROIC % is -0.63% (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.

PT Greenwood Sejahtera Tbk ROIC % Related Terms

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PT Greenwood Sejahtera Tbk Business Description

Industry

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Address

Jalan K.H. Mas Mansyur Kavling 126, TCC-Batavia Tower One Lantai 35, Jakarta Pusat, Jakarta, IDN, 10220

Website

https://www.greenwoodsejahtera.com

PT Greenwood Sejahtera Tbk is a real estate development company. The Company is engaged in the sector of construction and development, investment, trade, industry and transportation service. Its operating segments are Office, Apartment, and Hotel. It generated majority of its revenue from the Hotel segment. Some of its projects are Holiday Inn Express Pluit, TCC Batavia Tower 2, and Capital Square Surabaya, TCC Batavia 1, Seneyan City among others.

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