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ROYMF (International Distribution Services) ROIC % : -23.07% (As of Sep. 2024)


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What is International Distribution Services 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 %. International Distribution Services's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -23.07%.

As of today (2024-12-13), International Distribution Services's WACC % is 12.49%. International Distribution Services's ROIC % is 4.71% (calculated using TTM income statement data). International Distribution Services earns returns that do not match up to its cost of capital. It will destroy value as it grows.


International Distribution Services ROIC % Historical Data

The historical data trend for International Distribution Services'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.

International Distribution Services ROIC % Chart

International Distribution Services Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.22 6.52 6.52 -12.05 0.08

International Distribution Services Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.22 -25.51 -8.75 7.12 -23.07

Competitive Comparison of International Distribution Services's ROIC %

For the Integrated Freight & Logistics subindustry, International Distribution Services'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.


International Distribution Services's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, International Distribution Services's ROIC % distribution charts can be found below:

* The bar in red indicates where International Distribution Services's ROIC % falls into.



International Distribution Services ROIC % Calculation

International Distribution Services's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2024 is calculated as:

ROIC % (A: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2023 ) + Invested Capital (A: Mar. 2024 ))/ count )
=13.977 * ( 1 - 52.63% )/( (8425.971 + 8921.219)/ 2 )
=6.6209049/8673.595
=0.08 %

where

Invested Capital(A: Mar. 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))
=10699.029 - 2304.612 - ( 1089.806 - max(0, 3158.981 - 3127.427+1089.806))
=8425.971

Invested Capital(A: Mar. 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))
=11424.396 - 2391.36 - ( 1583.227 - max(0, 3628.971 - 3740.788+1583.227))
=8921.219

International Distribution Services's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=317.46 * ( 1 - 725% )/( (8921.219 + 8276.456)/ 2 )
=-1984.125/8598.8375
=-23.07 %

where

Invested Capital(Q: Mar. 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))
=11424.396 - 2391.36 - ( 1583.227 - max(0, 3628.971 - 3740.788+1583.227))
=8921.219

Invested Capital(Q: Sep. 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))
=10957.672 - 2497.354 - ( 1074.074 - max(0, 3039.683 - 3223.545+1074.074))
=8276.456

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


International Distribution Services  (OTCPK:ROYMF) 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, International Distribution Services's WACC % is 12.49%. International Distribution Services's ROIC % is 4.71% (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.


International Distribution Services ROIC % Related Terms

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International Distribution Services Business Description

Traded in Other Exchanges
Address
185 Farringdon Road, London, GBR, EC1A 1AA
International Distribution Services PLC is a postal and delivery service company domiciled in the United Kingdom. It delivers parcels and letters, produces stamps, and provides marketing services under the Royal Mail and Parcelforce brands. It organizes itself into two segments, based on geography: Royal Mail U.K. operations and GLS non-U.K. operations. Royal Mail derives the majority of revenue from U.K. operations, the company's domestic business. Non-U.K. operations principally include operations across Europe and the United States.