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Fraser and Neave (STU:FNV2) ROIC % : 3.35% (As of Sep. 2024)


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What is Fraser and Neave 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 %. Fraser and Neave's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 3.35%.

As of today (2024-12-15), Fraser and Neave's WACC % is 5.56%. Fraser and Neave's ROIC % is 3.78% (calculated using TTM income statement data). Fraser and Neave earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Fraser and Neave ROIC % Historical Data

The historical data trend for Fraser and Neave'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.

Fraser and Neave ROIC % Chart

Fraser and Neave Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.37 2.82 2.79 3.00 3.77

Fraser and Neave 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 2.73 2.54 3.58 4.25 3.35

Competitive Comparison of Fraser and Neave's ROIC %

For the Packaged Foods subindustry, Fraser and Neave'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.


Fraser and Neave's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Fraser and Neave's ROIC % distribution charts can be found below:

* The bar in red indicates where Fraser and Neave's ROIC % falls into.



Fraser and Neave ROIC % Calculation

Fraser and Neave's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Sep. 2024 is calculated as:

ROIC % (A: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2023 ) + Invested Capital (A: Sep. 2024 ))/ count )
=136.72 * ( 1 - 17.99% )/( (3063.472 + 2889.024)/ 2 )
=112.124072/2976.248
=3.77 %

where

Invested Capital(A: Sep. 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))
=3519.265 - 229.339 - ( 296.71 - max(0, 573.468 - 799.922+296.71))
=3063.472

Invested Capital(A: 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))
=3617.641 - 360.319 - ( 368.298 - max(0, 553.592 - 929.031+368.298))
=2889.024

Fraser and Neave'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 )
=122.488 * ( 1 - 21.27% )/( (2872.95 + 2889.024)/ 2 )
=96.4348024/2880.987
=3.35 %

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))
=3508.3 - 327.267 - ( 324.781 - max(0, 536.625 - 844.708+324.781))
=2872.95

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))
=3617.641 - 360.319 - ( 368.298 - max(0, 553.592 - 929.031+368.298))
=2889.024

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.


Fraser and Neave  (STU:FNV2) 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, Fraser and Neave's WACC % is 5.56%. Fraser and Neave's ROIC % is 3.78% (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.


Fraser and Neave ROIC % Related Terms

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Fraser and Neave Business Description

Traded in Other Exchanges
Address
438 Alexandra Road, Number 20-00 Alexandra Point, Singapore, SGP, 119958
Fraser and Neave Ltd is a Singapore-based company that operates through four segments: dairies, beverages, publishing and printing industries, and others. The dairies segment generates the majority of total revenue by manufacturing, marketing, and selling dairy products. The beverages segment is the next contributor to total revenue through the production and selling of soft drinks and alcoholic beverages. The publishing and printing business operates through a network of offices, printing plants, and distributors. The company mainly operates in Thailand, Malaysia, Singapore, Indochina, Indonesia, Myanmar and Philippines.

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