Empresa Siderurgica del PeruA (LIM:SIDERC1) ROIC %: 8.50% (As of Dec. 2016)


What is Empresa Siderurgica del PeruA ROIC %?

Empresa Siderurgica del PeruA LIM:SIDERC1 +0.41% ROIC % is 8.50% as of Dec. 2016.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Empresa Siderurgica del PeruA's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2016 was 8.50%.

As of today (2026-07-02), Empresa Siderurgica del PeruA's WACC % is 0.00%. Empresa Siderurgica del PeruA's ROIC % is 0.00% (calculated using TTM income statement data). Empresa Siderurgica del PeruA earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Empresa Siderurgica del PeruA  (LIM:SIDERC1) 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, Empresa Siderurgica del PeruA's WACC % is 0.00%. Empresa Siderurgica del PeruA's ROIC % is 0.00% (calculated using TTM income statement data). Empresa Siderurgica del PeruA 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.

Empresa Siderurgica del PeruA ROIC % Related Terms

Empresa Siderurgica del PeruA ROIC % Historical Data

* Premium members only.

The historical data trend for Empresa Siderurgica del PeruA'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.

Empresa Siderurgica del PeruA ROIC % Chart

Empresa Siderurgica del PeruA Annual Data
Trend Dec08 Dec09 Dec10 Dec14 Dec15 Dec16
ROIC %
Get a 7-Day Free Trial -7.94 4.94 -2.15 4.25 8.50

Empresa Siderurgica del PeruA Semi-Annual Data
Dec08 Dec09 Dec10 Dec14 Dec15 Dec16
ROIC % Get a 7-Day Free Trial -7.94 4.94 -2.15 4.25 8.50

Empresa Siderurgica del PeruA ROIC % Competitor Comparison

For the Steel subindustry, Empresa Siderurgica del PeruA'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.

Empresa Siderurgica del PeruA ROIC % vs Steel Industry

For the Steel industry and Basic Materials sector, Empresa Siderurgica del PeruA's ROIC % distribution charts can be found below:

* The bar in red indicates where Empresa Siderurgica del PeruA's ROIC % falls into.


Empresa Siderurgica del PeruA ROIC % Calculation

Empresa Siderurgica del PeruA's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2016 is calculated as:

ROIC % (A: Dec. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2015 ) + Invested Capital (A: Dec. 2016 ))/ count )
=127.192 * ( 1 - 17.07% )/( (1336.559 + 1145.329)/ 2 )
=105.4803256/1240.944
=8.50 %

where

Invested Capital(A: Dec. 2015 )
=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))
=1579.306 - 125.062 - ( 117.685 - max(0, 160.648 - 806.92+117.685))
=1336.559

Invested Capital(A: Dec. 2016 )
=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))
=1383.923 - 184.256 - ( 54.338 - max(0, 206.118 - 683.531+54.338))
=1145.329

Empresa Siderurgica del PeruA's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2016 is calculated as:

ROIC % (Q: Dec. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2015 ) + Invested Capital (Q: Dec. 2016 ))/ count )
=127.192 * ( 1 - 17.07% )/( (1336.559 + 1145.329)/ 2 )
=105.4803256/1240.944
=8.50 %

where

Invested Capital(Q: Dec. 2015 )
=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))
=1579.306 - 125.062 - ( 117.685 - max(0, 160.648 - 806.92+117.685))
=1336.559

Invested Capital(Q: Dec. 2016 )
=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))
=1383.923 - 184.256 - ( 54.338 - max(0, 206.118 - 683.531+54.338))
=1145.329

Note: The Operating Income data used here is one times the annual (Dec. 2016) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 8.50% mean?
Empresa Siderurgica del PeruA (LIM:SIDERC1) has a ROIC % of 8.50% as of Dec. 2016. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Empresa Siderurgica del PeruA and its competitors.
Is Empresa Siderurgica del PeruA's ROIC % too high?
Empresa Siderurgica del PeruA's current ROIC % is 8.50%. The Steel industry median ROIC % is 2.52. Empresa Siderurgica del PeruA's value of 8.50% is 237.3% above this industry median.
How does Empresa Siderurgica del PeruA's ROIC % compare to competitors?
Empresa Siderurgica del PeruA's ROIC % of 8.50% can be compared against companies in the Steel industry. The industry median ROIC % is 2.52. Empresa Siderurgica del PeruA's value of 8.50% is 237.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Steel company?
The median ROIC % among Steel companies is 2.52, based on 621 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Empresa Siderurgica del PeruA's current ROIC % of 8.50% is 237.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Empresa Siderurgica del PeruA and its competitors. For the Steel industry, the median ROIC % is 2.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Empresa Siderurgica del PeruA's current ROIC % is 8.50%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Empresa Siderurgica del PeruA stock overvalued right now?
Empresa Siderurgica del PeruA (LIM:SIDERC1) has a current ROIC % of 8.50%. The current ROIC % is 8.50% and 237.3% above the Steel industry median of 2.52. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Empresa Siderurgica del PeruA (LIM:SIDERC1), the current ROIC % is 8.50% as of Dec. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Empresa Siderurgica del PeruA Business Description

Address Avenue Juan de Arona 151, Tower B, Floor 5, Lima, PER
Empresa Siderurgica del Peru SAA is a steel manufacturing company. The company produces long steel designed for the construction and mining industry. The company provides long, flat, tubular, and road products.