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PT Ifishdeco Tbk (ISX:IFSH) ROIC % : 18.02% (As of Sep. 2024)


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What is PT Ifishdeco 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 Ifishdeco Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 18.02%.

As of today (2024-12-12), PT Ifishdeco Tbk's WACC % is 3.71%. PT Ifishdeco Tbk's ROIC % is 24.65% (calculated using TTM income statement data). PT Ifishdeco Tbk 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.


PT Ifishdeco Tbk ROIC % Historical Data

The historical data trend for PT Ifishdeco 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.

* Premium members only.

PT Ifishdeco Tbk ROIC % Chart

PT Ifishdeco Tbk Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial 11.98 0.77 7.24 14.83 25.86

PT Ifishdeco Tbk Quarterly Data
Dec18 Dec19 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.72 60.22 -2.43 21.32 18.02

Competitive Comparison of PT Ifishdeco Tbk's ROIC %

For the Other Industrial Metals & Mining subindustry, PT Ifishdeco 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 Ifishdeco Tbk's ROIC % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, PT Ifishdeco Tbk's ROIC % distribution charts can be found below:

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



PT Ifishdeco Tbk ROIC % Calculation

PT Ifishdeco 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 )
=287582.52 * ( 1 - 25.16% )/( (845589.508 + 818940.829)/ 2 )
=215226.757968/832265.1685
=25.86 %

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))
=1094941.799 - 142076.825 - ( 107275.466 - max(0, 257791.504 - 506723.324+107275.466))
=845589.508

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))
=1072483.807 - 107619.83 - ( 145923.148 - max(0, 259330.181 - 478938.039+145923.148))
=818940.829

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

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=179275.132 * ( 1 - 26.11% )/( (748274.085 + 721551.256)/ 2 )
=132466.3950348/734912.6705
=18.02 %

where

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))
=998909.427 - 128608.123 - ( 122027.219 - max(0, 213959.126 - 399388.416+122027.219))
=748274.085

Invested Capital(Q: Sep. 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))
=1032189.048 - 110807.013 - ( 209378.866 - max(0, 199683.23 - 399514.009+209378.866))
=721551.256

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


PT Ifishdeco Tbk  (ISX:IFSH) 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 Ifishdeco Tbk's WACC % is 3.71%. PT Ifishdeco Tbk's ROIC % is 24.65% (calculated using TTM income statement data). PT Ifishdeco Tbk 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. PT Ifishdeco Tbk 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.


PT Ifishdeco Tbk ROIC % Related Terms

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PT Ifishdeco Tbk Business Description

Traded in Other Exchanges
N/A
Address
Jl. Jenderal Sudirman No. 86, Gedung Sahid Sudirman Center Lantai 42 F, Karet Tengsin, Tanah Abang, Jakarta Pusat, Jakarta, IDN, 10220
PT Ifishdeco Tbk is an Indonesia based company engaged in the mining of nickel ore. The business activities are primarily carried out in Southeast Sulawesi, it undertakes the exploration, development, production, smelting, and marketing of nickel ore.

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