ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. CI Holdings Bhd's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 9.19%.
As of today (2024-12-15), CI Holdings Bhd's WACC % is 5.68%. CI Holdings Bhd's ROIC % is 15.68% (calculated using TTM income statement data).
CI Holdings Bhd generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
CI Holdings Bhd ROIC % Historical Data
The historical data trend for CI Holdings Bhd'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.
Competitive Comparison of CI Holdings Bhd's ROIC %
For the Packaged Foods subindustry, CI Holdings Bhd'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.
CI Holdings Bhd's ROIC % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, CI Holdings Bhd's ROIC % distribution charts can be found below:
* The bar in red indicates where CI Holdings Bhd's ROIC % falls into.
CI Holdings Bhd ROIC % Calculation
CI Holdings Bhd's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2024 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.
CI Holdings Bhd (XKLS:2828) 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, CI Holdings Bhd's WACC % is 5.68%. CI Holdings Bhd's ROIC % is 15.68% (calculated using TTM income statement data).
CI Holdings Bhd generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
CI Holdings Bhd earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
CI Holdings Bhd ROIC % Related Terms
Thank you for viewing the detailed overview of CI Holdings Bhd's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
CI Holdings Bhd is engaged in investment holding and the provision of management services. The company's operating segment includes Edible oil; Tap-ware and sanitary ware; and Investment holdings. It generates maximum revenue from the Edible oil segment. The edible oil segment is engaged in the selling, packing, and marketing of all types of edible oil. Its Tap-ware and sanitary ware segment is engaged in the manufacture and trading of household fittings and appliances such as water taps, plumbing accessories and sanitary wares and Investment holding segment. Geographically, it derives a majority of revenue from Africa and also has a presence in Malaysia; Asia and Other regions.
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