Enviro-Hub Holdings (SGX:L23) ROIC % : -0.12% (As of Dec. 2023)

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What is Enviro-Hub Holdings 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 %. Enviro-Hub Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -0.12%.

As of today (2024-05-25), Enviro-Hub Holdings's WACC % is 7.46%. Enviro-Hub Holdings's ROIC % is 0.45% (calculated using TTM income statement data). Enviro-Hub Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Enviro-Hub Holdings ROIC % Historical Data

The historical data trend for Enviro-Hub Holdings'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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Enviro-Hub Holdings ROIC % Chart

Enviro-Hub Holdings Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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0.18

-0.26

1.00

-0.69

0.45

Enviro-Hub Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial															2.68	3.57	-5.68	1.25	-0.12

Competitive Comparison of Enviro-Hub Holdings's ROIC %

For the Waste Management subindustry, Enviro-Hub Holdings'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.

Enviro-Hub Holdings's ROIC % Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Enviro-Hub Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Enviro-Hub Holdings's ROIC % falls into.

Enviro-Hub Holdings ROIC % Calculation

Enviro-Hub Holdings'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 )
=	0.682 * ( 1 - 15.39% )	/	( (130.863	+	124.112)	/ 2 )
=	0.5770402	/	127.4875
=	0.45 %

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	))
=	158.278	-	13.614	-	( 15.543	-	max(0, 18.816	-	32.617	+	15.543	))
=	130.863

	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	))
=	143.577	-	10.221	-	( 15.689	-	max(0, 14.544	-	23.788	+	15.689	))
=	124.112

Enviro-Hub Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-0.182 * ( 1 - 14.25% )	/	( (127.246	+	124.112)	/ 2 )
=	-0.156065	/	125.679
=	-0.12 %

where

	Invested Capital		(Q: Jun. 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	))
=	151.811	-	10.488	-	( 15.356	-	max(0, 18.523	-	32.6	+	15.356	))
=	127.246

	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	))
=	143.577	-	10.221	-	( 15.689	-	max(0, 14.544	-	23.788	+	15.689	))
=	124.112

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Enviro-Hub Holdings (SGX:L23) 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, Enviro-Hub Holdings's WACC % is 7.46%. Enviro-Hub Holdings's ROIC % is 0.45% (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.

Enviro-Hub Holdings ROIC % Related Terms

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Enviro-Hub Holdings (SGX:L23) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Enviro-Hub Holdings Ltd (SGX:L23) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3 Gul Crescent, Singapore, SGP, 629519

Website

http://www.enviro-hub.com

Enviro-Hub Holdings Ltd is a recycling and waste management company. It operates in the business segment of The Trading, recycling and refining of e-waste/metals segment, which is the key revenue-driving segment, which involves the trading, recycling and refining of electronic waste (e-waste) and metals, comprising the recycling, extraction and refining of PGM and copper. The Piling contracts, construction, rental and servicing of machinery segment relate to the provision of piling, building and construction-related engineering and technical services as well as rental and servicing of machinery. Its other segments are Property investments and management; Manufacturing and trading of healthcare products, and Others. It derives revenue from Singapore and other countries.

Enviro-Hub Holdings (SGX:L23) Headlines

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