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EuroSports Global (SGX:5G1) ROIC % : -17.49% (As of Mar. 2024)


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What is EuroSports 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 %. EuroSports Global's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -17.49%.

As of today (2025-03-04), EuroSports Global's WACC % is 6.48%. EuroSports Global's ROIC % is -29.30% (calculated using TTM income statement data). EuroSports Global earns returns that do not match up to its cost of capital. It will destroy value as it grows.


EuroSports Global ROIC % Historical Data

The historical data trend for EuroSports 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.

* Premium members only.

EuroSports Global ROIC % Chart

EuroSports Global 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 -9.24 -15.31 -18.56 -23.05 -29.98

EuroSports Global Semi-Annual Data
Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24
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 -14.10 -25.88 -18.48 -43.11 -17.49

Competitive Comparison of EuroSports Global's ROIC %

For the Auto & Truck Dealerships subindustry, EuroSports 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.


EuroSports Global's ROIC % Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, EuroSports Global's ROIC % distribution charts can be found below:

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



EuroSports Global ROIC % Calculation

EuroSports Global'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 )
=-9.511 * ( 1 - -1.21% )/( (26.166 + 38.042)/ 2 )
=-9.6260831/32.104
=-29.98 %

where

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

ROIC % (Q: Mar. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-5.974 * ( 1 - -6.02% )/( (34.366 + 38.042)/ 2 )
=-6.3336348/36.204
=-17.49 %

where

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


EuroSports Global  (SGX:5G1) 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, EuroSports Global's WACC % is 6.48%. EuroSports Global's ROIC % is -29.30% (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.


EuroSports Global ROIC % Related Terms

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EuroSports Global Business Description

Traded in Other Exchanges
Address
24 Leng Kee Road, Number 01-03, Singapore, SGP, 159096
EuroSports Global Ltd is an investment holding company, which engages in the provision of management services. The segments of the company are Automobiles Distribution, Sustainable Mobility and Others. The Automobiles Distribution segment which derives the majority of revenue retails new luxury automobiles as well as pre-owned automobiles, the Sustainable Mobility segment engages in developing electric motorcycles, and the Other segment includes sales of watches.

EuroSports Global Headlines

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