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PT Multi Bintang Indonesia Tbk (ISX:MLBI) ROIC % : 45.99% (As of Sep. 2024)


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What is PT Multi Bintang Indonesia 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 Multi Bintang Indonesia Tbk's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 45.99%.

As of today (2025-03-03), PT Multi Bintang Indonesia Tbk's WACC % is 8.31%. PT Multi Bintang Indonesia Tbk's ROIC % is 38.70% (calculated using TTM income statement data). PT Multi Bintang Indonesia 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 Multi Bintang Indonesia Tbk ROIC % Historical Data

The historical data trend for PT Multi Bintang Indonesia 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 Multi Bintang Indonesia Tbk ROIC % Chart

PT Multi Bintang Indonesia Tbk Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 42.71 12.17 23.01 30.38 34.55

PT Multi Bintang Indonesia Tbk Quarterly Data
Dec19 Mar20 Jun20 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 Premium Member Only 30.32 49.62 27.40 32.17 45.99

Competitive Comparison of PT Multi Bintang Indonesia Tbk's ROIC %

For the Beverages - Brewers subindustry, PT Multi Bintang Indonesia 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 Multi Bintang Indonesia Tbk's ROIC % Distribution in the Beverages - Alcoholic Industry

For the Beverages - Alcoholic industry and Consumer Defensive sector, PT Multi Bintang Indonesia Tbk's ROIC % distribution charts can be found below:

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



PT Multi Bintang Indonesia Tbk ROIC % Calculation

PT Multi Bintang Indonesia 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 )
=1409978 * ( 1 - 23.7% )/( (3237758 + 2988947)/ 2 )
=1075813.214/3113352.5
=34.55 %

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))
=3374502 - 642264 - ( 842329 - max(0, 2154777 - 1649257+842329))
=3237758

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))
=3407442 - 555734 - ( 798000 - max(0, 1870445 - 1733206+798000))
=2988947

PT Multi Bintang Indonesia 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 )
=1743416 * ( 1 - 21.5% )/( (2930122 + 3021356)/ 2 )
=1368581.56/2975739
=45.99 %

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))
=3785932 - 1297435 - ( 1422105 - max(0, 2646785 - 2205160+1422105))
=2930122

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))
=3483575 - 597810 - ( 1047586 - max(0, 2032746 - 1897155+1047586))
=3021356

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 Multi Bintang Indonesia Tbk  (ISX:MLBI) 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 Multi Bintang Indonesia Tbk's WACC % is 8.31%. PT Multi Bintang Indonesia Tbk's ROIC % is 38.70% (calculated using TTM income statement data). PT Multi Bintang Indonesia 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 Multi Bintang Indonesia 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 Multi Bintang Indonesia Tbk ROIC % Related Terms

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PT Multi Bintang Indonesia Tbk Business Description

Traded in Other Exchanges
N/A
Address
Jalan Let. Jend TB Simatupang Kavling 22 - 26, 20th Floor, Talavera Office Park Building, Jakarta, IDN, 12430
PT Multi Bintang Indonesia Tbk is a beverage company. The firm is involved in the production, distribution, and sale of beer, including low-alcohol and alcohol-free beer products, cider and carbonated soft drinks. Its brands include Heineken, Bintang, Bintang Radler, Bintang Zero, and Greensands. The firm has a Beverage business segment and operates mainly in Indonesia.

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