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SINDOH Co (XKRX:029530) ROIC % : 5.40% (As of Dec. 2024)


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What is SINDOH 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 %. SINDOH Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 5.40%.

As of today (2025-04-02), SINDOH Co's WACC % is 4.29%. SINDOH Co's ROIC % is 6.37% (calculated using TTM income statement data). SINDOH Co 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.


SINDOH Co ROIC % Historical Data

The historical data trend for SINDOH 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.

* Premium members only.

SINDOH Co ROIC % Chart

SINDOH Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.80 1.41 -0.57 7.52 6.34

SINDOH Co Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 7.24 9.57 6.61 3.21 5.40

Competitive Comparison of SINDOH Co's ROIC %

For the Business Equipment & Supplies subindustry, SINDOH 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.


SINDOH Co's ROIC % Distribution in the Industrial Products Industry

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

* The bar in red indicates where SINDOH Co's ROIC % falls into.


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SINDOH Co ROIC % Calculation

SINDOH Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROIC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=20156.745 * ( 1 - 21.34% )/( (244194.633 + 256149.303)/ 2 )
=15855.295617/250171.968
=6.34 %

where

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))
=1078782.999 - 40374.826 - ( 794213.54 - max(0, 71806.841 - 903271.178+794213.54))
=244194.633

Invested Capital(A: Dec. 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))
=1143580.683 - 49872.062 - ( 837559.318 - max(0, 70476.67 - 950335.009+837559.318))
=256149.303

SINDOH Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2024 is calculated as:

ROIC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=15613.22 * ( 1 - 15.45% )/( (232328.289 + 256149.303)/ 2 )
=13200.97751/244238.796
=5.40 %

where

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))
=1100653.626 - 37601.352 - ( 830723.985 - max(0, 57505.934 - 958450.359+830723.985))
=232328.289

Invested Capital(Q: Dec. 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))
=1143580.683 - 49872.062 - ( 837559.318 - max(0, 70476.67 - 950335.009+837559.318))
=256149.303

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


SINDOH Co  (XKRX:029530) 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, SINDOH Co's WACC % is 4.29%. SINDOH Co's ROIC % is 6.37% (calculated using TTM income statement data). SINDOH Co 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. SINDOH Co 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.


SINDOH Co ROIC % Related Terms

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SINDOH Co Business Description

Traded in Other Exchanges
N/A
Address
277-22, 2-Ga Seongsu-dong, Seongdong-gu, Seoul, KOR, 133-705
SINDOH Co Ltd is a manufacturer of office systems in the Korean market. Its suite of products includes multifunctional digital copiers, mono laser printers, facsimiles, sorters, fax machines, as well as consumable components such as drums, toners, and ink cartridges. The company has a worldwide market base.

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