Tycoons Group Enterprise Co (TPE:2022) ROIC % : -8.61% (As of Sep. 2024)

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What is Tycoons Group Enterprise Co 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 %. Tycoons Group Enterprise Co's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -8.61%.

As of today (2024-12-13), Tycoons Group Enterprise Co's WACC % is 6.34%. Tycoons Group Enterprise Co's ROIC % is 0.74% (calculated using TTM income statement data). Tycoons Group Enterprise Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Tycoons Group Enterprise Co ROIC % Historical Data

The historical data trend for Tycoons Group Enterprise Co'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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Tycoons Group Enterprise Co ROIC % Chart

Tycoons Group Enterprise Co Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-2.75

1.90

10.87

3.39

4.75

Tycoons Group Enterprise Co Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROIC %	Get a 7-Day Free Trial															3.25	13.20	2.28	-1.14	-8.61

Competitive Comparison of Tycoons Group Enterprise Co's ROIC %

For the Tools & Accessories subindustry, Tycoons Group Enterprise Co'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.

Tycoons Group Enterprise Co's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Tycoons Group Enterprise Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Tycoons Group Enterprise Co's ROIC % falls into.

Tycoons Group Enterprise Co ROIC % Calculation

Tycoons Group Enterprise Co'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 )
=	370.998 * ( 1 - 7.46% )	/	( (7022.26	+	7437.89)	/ 2 )
=	343.3215492	/	7230.075
=	4.75 %

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	))
=	8521.013	-	286.653	-	( 1212.1	-	max(0, 1948.749	-	4374.352	+	1212.1	))
=	7022.26

	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	))
=	8911.084	-	312.931	-	( 1160.263	-	max(0, 1693.174	-	4603.6	+	1160.263	))
=	7437.89

Tycoons Group Enterprise Co'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: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-777.472 * ( 1 - 7.7% )	/	( (7996.714	+	8664.973)	/ 2 )
=	-717.606656	/	8330.8435
=	-8.61 %

where

	Invested Capital		(Q: Jun. 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	))
=	9660.819	-	552.403	-	( 1111.702	-	max(0, 2618.503	-	5415.243	+	1111.702	))
=	7996.714

	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	))
=	10179.902	-	469.103	-	( 1045.826	-	max(0, 2756.953	-	5445.926	+	1045.826	))
=	8664.973

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Tycoons Group Enterprise Co (TPE:2022) 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, Tycoons Group Enterprise Co's WACC % is 6.34%. Tycoons Group Enterprise Co's ROIC % is 0.74% (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.

Tycoons Group Enterprise Co ROIC % Related Terms

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Tycoons Group Enterprise Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Tycoons Group Enterprise Co Ltd (TPE:2022) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

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Address

No 79-1 Sinle Street, Gangshan District, Kaohsiung, TWN, 820

Website

https://ir.tycons.com

Tycoons Group Enterprise Co Ltd is principally engaged in the manufacture, processing, and sales of wire rods and screws. The main business is to produce, process, commerce, export or lease screws, screw nuts, washer, steel thread, heat-processing of metal-blazed, mechanical parts, press-modeling machines as well as heat-processing equipment, and to manufacture, process, and export various metal-models, and general international trade business.

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