GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Jawala Inc (SGX:1J7) » Definitions » ROIC %

Jawala (SGX:1J7) ROIC % : -16.99% (As of Jan. 2024)


View and export this data going back to 2018. Start your Free Trial

What is Jawala 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 %. Jawala's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2024 was -16.99%.

As of today (2024-09-26), Jawala's WACC % is 0.94%. Jawala's ROIC % is -19.80% (calculated using TTM income statement data). Jawala earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Jawala ROIC % Historical Data

The historical data trend for Jawala'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.

Jawala ROIC % Chart

Jawala Annual Data
Trend Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22 Jul23
ROIC %
Get a 7-Day Free Trial Premium Member Only 169.42 25.34 43.12 4.12 -14.57

Jawala Semi-Annual Data
Jul15 Jul16 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20 Jul20 Jan21 Jul21 Jan22 Jul22 Jan23 Jul23 Jan24
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 -8.02 14.52 -2.61 -27.77 -16.99

Competitive Comparison of Jawala's ROIC %

For the Lumber & Wood Production subindustry, Jawala'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.


Jawala's ROIC % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Jawala's ROIC % distribution charts can be found below:

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



Jawala ROIC % Calculation

Jawala's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jul. 2023 is calculated as:

ROIC % (A: Jul. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jul. 2022 ) + Invested Capital (A: Jul. 2023 ))/ count )
=-1.628 * ( 1 - 7.45% )/( (8.853 + 11.826)/ 2 )
=-1.506714/10.3395
=-14.57 %

where

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

ROIC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=-2.568 * ( 1 - 18.38% )/( (11.826 + 12.841)/ 2 )
=-2.0960016/12.3335
=-16.99 %

where

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


Jawala  (SGX:1J7) 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, Jawala's WACC % is 0.94%. Jawala's ROIC % is -19.80% (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.


Jawala ROIC % Related Terms

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


Jawala Business Description

Traded in Other Exchanges
N/A
Address
Jalan Sultan Ismail, Lot 17-02, 17th Floor, Menara Promet, Wilayah Persekutuan, Kuala Lumpur, SGR, MYS, 50250
Jawala Inc provides a range of wood, palm oil, and petroleum products. The company is also involved in construction procurements, countertrade and investment through joint ventures in infrastructure and industrial projects. The company's only segment being timber namely the planting, extraction and sale of logs.

Jawala Headlines

No Headlines