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Fan Milk (XGHA:FML) ROIC % : -40.73% (As of Dec. 2022)


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What is Fan Milk 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 %. Fan Milk's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2022 was -40.73%.

As of today (2024-06-15), Fan Milk's WACC % is 0.00%. Fan Milk's ROIC % is 0.00% (calculated using TTM income statement data). Fan Milk earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Fan Milk ROIC % Historical Data

The historical data trend for Fan Milk'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.

Fan Milk ROIC % Chart

Fan Milk Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec21 Dec22
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 21.38 -0.44 7.77 -5.25 -15.33

Fan Milk Quarterly Data
Jun15 Sep15 Dec15 Mar16 Dec16 Mar17 Dec17 Sep18 Dec18 Sep19 Dec19 Sep20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 0.16 -0.95 -8.26 -9.92 -40.73

Competitive Comparison of Fan Milk's ROIC %

For the Packaged Foods subindustry, Fan Milk'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.


Fan Milk's ROIC % Distribution in the Consumer Packaged Goods Industry

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

* The bar in red indicates where Fan Milk's ROIC % falls into.



Fan Milk ROIC % Calculation

Fan Milk's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROIC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=-31.75 * ( 1 - -23.96% )/( (253.437 + 260.188)/ 2 )
=-39.3573/256.8125
=-15.33 %

where

Invested Capital(A: Dec. 2021 )
=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))
=571.562 - 252.544 - ( 65.581 - max(0, 279.274 - 374.489+65.581))
=253.437

Fan Milk's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2022 is calculated as:

ROIC % (Q: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2022 ) + Invested Capital (Q: Dec. 2022 ))/ count )
=-74.22 * ( 1 - -48.04% )/( (279.363 + 260.188)/ 2 )
=-109.875288/269.7755
=-40.73 %

where

Invested Capital(Q: Sep. 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))
=596.684 - 294.926 - ( 22.395 - max(0, 364.926 - 409.296+22.395))
=279.363

Note: The Operating Income data used here is four times the quarterly (Dec. 2022) 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.


Fan Milk  (XGHA:FML) 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, Fan Milk's WACC % is 0.00%. Fan Milk's ROIC % is 0.00% (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.


Fan Milk ROIC % Related Terms

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Fan Milk (XGHA:FML) Business Description

Traded in Other Exchanges
N/A
Address
Airport Commercial Centre, 2nd Floor, Grand Oyeman Building, Accra, GHA
Fan Milk PLC engages in the manufacturing and distribution of dairy products and fruit drinks. The company's milk-based products consist of frozen ice creams, chocolate, and yoghurt that includes FanYogo (yoghurt), FanChoco (chocolate), and FanIce (ice cream). Its fruit-based products include FanDango (fruit drink) and FanPop. It distributes its products through independent distributors and agents. The majority of the revenue is derived from the manufacturing and distribution of dairy products and fruit drinks.

Fan Milk (XGHA:FML) Headlines

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