ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. TRILINC Global Impact Fund LLC's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 5.13%.
As of today (2024-12-15), TRILINC Global Impact Fund LLC's WACC % is 10.40%. TRILINC Global Impact Fund LLC's ROIC % is 3.68% (calculated using TTM income statement data).
TRILINC Global Impact Fund LLC earns returns that do not match up to its cost of capital. It will destroy value as it grows.
TRILINC Global Impact Fund LLC ROIC % Historical 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.
Competitive Comparison of TRILINC Global Impact Fund LLC's ROIC %
For the Asset Management subindustry, TRILINC Global Impact Fund LLC'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.
TRILINC Global Impact Fund LLC's ROIC % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, TRILINC Global Impact Fund LLC's ROIC % distribution charts can be found below:
* The bar in red indicates where TRILINC Global Impact Fund LLC's ROIC % falls into.
TRILINC Global Impact Fund LLC ROIC % Calculation
TRILINC Global Impact Fund LLC's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (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.
TRILINC Global Impact Fund LLC (OTCPK:TRLC) 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, TRILINC Global Impact Fund LLC's WACC % is 10.40%. TRILINC Global Impact Fund LLC's ROIC % is 3.68% (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.
TRILINC Global Impact Fund LLC ROIC % Related Terms
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TRILINC Global Impact Fund LLC Business Description
TRILINC Global Impact Fund LLC is engaged in making impact investments in Small and Medium Enterprises, or SMEs, which It defines as those businesses having less than 500 employees, predominantly in developing economies that provide the opportunity to achieve both competitive financial returns and positive measurable impact. The company's business strategy is to generate competitive financial returns and positive economic, social and/or environmental impact by providing financing to SMEs, primarily in developing economies, defined as countries with national income classified by the World Bank as upper-middle income and below. Its style of investment is referred to as impact investing.
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