ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Insimbi Industrial Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Aug. 2024 was 1.88%.
As of today (2024-12-15), Insimbi Industrial Holdings's WACC % is 21.05%. Insimbi Industrial Holdings's ROIC % is 3.11% (calculated using TTM income statement data).
Insimbi Industrial Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Insimbi Industrial Holdings 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 Insimbi Industrial Holdings's ROIC %
For the Metal Fabrication subindustry, Insimbi Industrial Holdings'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.
Insimbi Industrial Holdings's ROIC % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Insimbi Industrial Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where Insimbi Industrial Holdings's ROIC % falls into.
Insimbi Industrial Holdings ROIC % Calculation
Insimbi Industrial Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Feb. 2024 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Aug. 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.
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, Insimbi Industrial Holdings's WACC % is 21.05%. Insimbi Industrial Holdings's ROIC % is 3.11% (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.
Insimbi Industrial Holdings ROIC % Related Terms
Thank you for viewing the detailed overview of Insimbi Industrial Holdings's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Insimbi Industrial Holdings Ltd is a South Africa based company engaged in providing commodities like ferrous and non-ferrous alloys to the steel, aluminum, cement and foundry industries. In addition, it also operates in refractory materials and plastics division. The company's business segments are Non-ferrous, Ferrous, Refractory and Plastics. The group generates the majority of the revenue from the Non-ferrous segment. Non-ferrous segment consists of the divisions which service the foundry and non-ferrous industry, both automotive and heavy, aluminum industry and the powder coating industry. The company exports internationally and derives its key revenue from South Africa.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
JSE:ISB has been successfully added to your 