GMT Global (ROCO:4573) ROIC % : -1.14% (As of Jun. 2024)

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What is GMT Global 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 %. GMT Global's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -1.14%.

As of today (2024-12-14), GMT Global's WACC % is 6.10%. GMT Global's ROIC % is -4.36% (calculated using TTM income statement data). GMT Global earns returns that do not match up to its cost of capital. It will destroy value as it grows.

GMT Global ROIC % Historical Data

The historical data trend for GMT Global'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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GMT Global ROIC % Chart

GMT Global Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-4.74

0.26

-1.81

-1.84

-7.67

GMT Global Semi-Annual Data
	Dec15	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROIC %	Get a 7-Day Free Trial												-0.08	-3.70	-7.64	-7.54	-1.14

Competitive Comparison of GMT Global's ROIC %

For the Electronic Components subindustry, GMT Global'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.

GMT Global's ROIC % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, GMT Global's ROIC % distribution charts can be found below:

* The bar in red indicates where GMT Global's ROIC % falls into.

GMT Global ROIC % Calculation

GMT Global'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 )
=	-130.181 * ( 1 - 11.32% )	/	( (1583.893	+	1425.391)	/ 2 )
=	-115.4445108	/	1504.642
=	-7.67 %

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	))
=	1776.319	-	140.623	-	( 51.803	-	max(0, 284.33	-	658.44	+	51.803	))
=	1583.893

	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	))
=	1579.965	-	113.682	-	( 40.892	-	max(0, 245.059	-	618.994	+	40.892	))
=	1425.391

GMT Global's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROIC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-30.134 * ( 1 - 45.91% )	/	( (1425.391	+	1422.553)	/ 2 )
=	-16.2994806	/	1423.972
=	-1.14 %

where

	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	))
=	1579.965	-	113.682	-	( 40.892	-	max(0, 245.059	-	618.994	+	40.892	))
=	1425.391

	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	))
=	1626.334	-	148.802	-	( 54.979	-	max(0, 305.601	-	707.473	+	54.979	))
=	1422.553

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

GMT Global (ROCO:4573) 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, GMT Global's WACC % is 6.10%. GMT Global's ROIC % is -4.36% (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.

GMT Global ROIC % Related Terms

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GMT Global Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » GMT Global Inc (ROCO:4573) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 357, Section 1, Yaofeng Road, Puxin Township, Changhua County, Changhua, TWN, 50442

Website

https://www.gmtlinear.com

GMT Global Inc is engaged in the manufacturing of the precision die, precision dies sets and mold components. The company also helps in the fields of biomedical genetic engineering, precision optical engineering, MEMS manufacturing and other fields with the manufacturing of positioning stage elements. Its products profile include Actuators, Electric Gripper, Linear Cylinder, Optical Table, Hi-resolution stage, and others.

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