Dhofar International Development & Investment Holding (MUS:DIDI) ROIC % : -3.47% (As of Dec. 2023)

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What is Dhofar International Development & Investment Holding 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 %. Dhofar International Development & Investment Holding's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -3.47%.

As of today (2024-12-13), Dhofar International Development & Investment Holding's WACC % is 8.39%. Dhofar International Development & Investment Holding's ROIC % is -1.31% (calculated using TTM income statement data). Dhofar International Development & Investment Holding earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Dhofar International Development & Investment Holding ROIC % Historical Data

The historical data trend for Dhofar International Development & Investment Holding'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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Dhofar International Development & Investment Holding ROIC % Chart

Dhofar International Development & Investment Holding Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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3.85

-0.89

2.27

1.76

-1.31

Dhofar International Development & Investment Holding Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															1.69	0.44	-1.30	-0.87	-3.47

Competitive Comparison of Dhofar International Development & Investment Holding's ROIC %

For the Asset Management subindustry, Dhofar International Development & Investment Holding'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.

Dhofar International Development & Investment Holding's ROIC % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Dhofar International Development & Investment Holding's ROIC % distribution charts can be found below:

* The bar in red indicates where Dhofar International Development & Investment Holding's ROIC % falls into.

Dhofar International Development & Investment Holding ROIC % Calculation

Dhofar International Development & Investment Holding'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 )
=	-2.866 * ( 1 - 0.5% )	/	( (215.581	+	221.048)	/ 2 )
=	-2.85167	/	218.3145
=	-1.31 %

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	))
=	218.811	-	0.678	-	( 2.552	-	max(0, 0.678	-	3.258	+	2.552	))
=	215.581

	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	))
=	223.813	-	0.702	-	( 2.063	-	max(0, 0.702	-	2.911	+	2.063	))
=	221.048

Dhofar International Development & Investment Holding's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-7.712 * ( 1 - 1% )	/	( (218.832	+	221.048)	/ 2 )
=	-7.63488	/	219.94
=	-3.47 %

where

	Invested Capital		(Q: Sep. 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	))
=	222.722	-	0.464	-	( 3.426	-	max(0, 0.464	-	4.248	+	3.426	))
=	218.832

	Invested Capital		(Q: 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	))
=	223.813	-	0.702	-	( 2.063	-	max(0, 0.702	-	2.911	+	2.063	))
=	221.048

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Dhofar International Development & Investment Holding (MUS:DIDI) 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, Dhofar International Development & Investment Holding's WACC % is 8.39%. Dhofar International Development & Investment Holding's ROIC % is -1.31% (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.

Dhofar International Development & Investment Holding ROIC % Related Terms

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Dhofar International Development & Investment Holding Business Description

Industry

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Traded in Other Exchanges

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Address

DIDIC Building, 23rd July Street, P.O.Box: 2163, Salalah, OMN, 211

Website

https://www.didic.com

Dhofar International Development & Investment Holding is an investment company operating in Oman whose objective is promoting economic and industrial development in Oman through investment in various viable investment projects of all sectors while maximizing returns to its shareholders. It invests in subsidiaries, associates, and other assets. The firm recognizes its revenue from interest, dividends, and gains on the appreciation in the value of investments. Its segments include Strategic Investments, Non-Strategic Investments, and Hospitality.

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