Omani Euro Food Industries (MUS:OEFI) ROIC % : 1.75% (As of Mar. 2018)

View and export this data going back to 1998. Start your Free Trial

What is Omani Euro Food Industries 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 %. Omani Euro Food Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2018 was 1.75%.

As of today (2024-09-26), Omani Euro Food Industries's WACC % is 0.00%. Omani Euro Food Industries's ROIC % is 0.00% (calculated using TTM income statement data). Omani Euro Food Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Omani Euro Food Industries ROIC % Historical Data

The historical data trend for Omani Euro Food Industries'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.

Omani Euro Food Industries ROIC % Chart

Omani Euro Food Industries Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

ROIC %

Get a 7-Day Free Trial

-1.82

-3.52

-1.26

0.59

Omani Euro Food Industries Quarterly Data
	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18
ROIC %	Get a 7-Day Free Trial															3.34	-1.19	-	-	1.75

Competitive Comparison of Omani Euro Food Industries's ROIC %

For the Packaged Foods subindustry, Omani Euro Food Industries'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.

Omani Euro Food Industries's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Omani Euro Food Industries's ROIC % distribution charts can be found below:

* The bar in red indicates where Omani Euro Food Industries's ROIC % falls into.

Omani Euro Food Industries ROIC % Calculation

Omani Euro Food Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2017 is calculated as:

	ROIC % (A: Dec. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2016 )	+	Invested Capital (A: Dec. 2017 ))	/ count )
=	0.025 * ( 1 - 0% )	/	( (4.098	+	4.365)	/ 2 )
=	0.025	/	4.2315
=	0.59 %

where

	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	))
=	4.154	-	0.244	-	( 0.38	-	max(0, 1.505	-	1.317	+	0.38	))
=	4.098

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	4.11	-	0.287	-	( 0.495	-	max(0, 1.982	-	1.44	+	0.495	))
=	4.365

Omani Euro Food Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2018 is calculated as:

	ROIC % (Q: Mar. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2017 )	+	Invested Capital (Q: Mar. 2018 ))	/ count )
=	0.076 * ( 1 - 0% )	/	( (4.365	+	4.313)	/ 2 )
=	0.076	/	4.339
=	1.75 %

where

	Invested Capital		(Q: Dec. 2017 )
=	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	))
=	4.11	-	0.287	-	( 0.495	-	max(0, 1.982	-	1.44	+	0.495	))
=	4.365

	Invested Capital		(Q: Mar. 2018 )
=	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	))
=	4.081	-	0.27	-	( 0.598	-	max(0, 1.957	-	1.455	+	0.598	))
=	4.313

Note: The Operating Income data used here is four times the quarterly (Mar. 2018) data.

Omani Euro Food Industries (MUS:OEFI) 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, Omani Euro Food Industries's WACC % is 0.00%. Omani Euro Food Industries's ROIC % is 0.00% (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.

Omani Euro Food Industries ROIC % Related Terms

Thank you for viewing the detailed overview of Omani Euro Food Industries's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Omani Euro Food Industries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Omani Euro Food Industries (MUS:OEFI) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Jawharat Al Shatti, P.O. Box 23, Sultanate of Oman, OMN, 134

Website

http://www.babyfoodoman.com

Omani Euro Food Industries is a health food manufacturing company in Oman. It is engaged in the manufacturing and marketing of baby foods and related products. The company offers a range of baby food and nutritional food under the brand name of Mother's Choice. It is also involved in the contract manufacturing of baby cereals, biscuits, rusks and health drink powder for other food brands. Its products are exported to many countries in Gulf Cooperation Council, Africa, and Asia.

Omani Euro Food Industries Headlines

No Headlines