Cementos Molins (XMAD:CMO) ROIC % : 6.87% (As of Jun. 2023)

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What is Cementos Molins 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 %. Cementos Molins's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was 6.87%.

As of today (2024-05-27), Cementos Molins's WACC % is 9.73%. Cementos Molins's ROIC % is 6.00% (calculated using TTM income statement data). Cementos Molins earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cementos Molins ROIC % Historical Data

The historical data trend for Cementos Molins'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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Cementos Molins ROIC % Chart

Cementos Molins Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROIC %

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4.03

5.84

5.49

6.40

5.34

Cementos Molins Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROIC %	Get a 7-Day Free Trial															6.55	7.09	5.24	5.12	6.87

Competitive Comparison of Cementos Molins's ROIC %

For the Building Materials subindustry, Cementos Molins'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.

Cementos Molins's ROIC % Distribution in the Building Materials Industry

For the Building Materials industry and Basic Materials sector, Cementos Molins's ROIC % distribution charts can be found below:

* The bar in red indicates where Cementos Molins's ROIC % falls into.

Cementos Molins ROIC % Calculation

Cementos Molins'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 )
=	118.503 * ( 1 - 29.67% )	/	( (1450.156	+	1669.37)	/ 2 )
=	83.3431599	/	1559.763
=	5.34 %

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	))
=	1761.486	-	209.857	-	( 101.473	-	max(0, 321.737	-	451.564	+	101.473	))
=	1450.156

	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	))
=	1984.346	-	229.422	-	( 85.554	-	max(0, 345.848	-	495.84	+	85.554	))
=	1669.37

Cementos Molins's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROIC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	151.106 * ( 1 - 21.43% )	/	( (1669.37	+	1787.626)	/ 2 )
=	118.7239842	/	1728.498
=	6.87 %

where

	Invested Capital		(Q: 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	))
=	1984.346	-	229.422	-	( 85.554	-	max(0, 345.848	-	495.84	+	85.554	))
=	1669.37

	Invested Capital		(Q: Jun. 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	))
=	2076	-	205.007	-	( 83.367	-	max(0, 361.22	-	507.416	+	83.367	))
=	1787.626

Note: The Operating Income data used here is two times the semi-annual (Jun. 2023) data.

Cementos Molins (XMAD:CMO) 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, Cementos Molins's WACC % is 9.73%. Cementos Molins's ROIC % is 6.00% (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.

Cementos Molins ROIC % Related Terms

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Cementos Molins (XMAD:CMO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Building Materials » Cementos Molins SA (XMAD:CMO) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

Calle Espronceda 38, local 3, Madrid, ESP, 28003

Website

http://www.cemolins.es

Cementos Molins SA engages in the manufacturing and selling of gray cement and white cement used for various construction purposes in the civil engineering industry. The group's core business is to manufacture and market its products which include, cement, clinker, concrete, mortars, aggregates, and precast concrete. It caters to markets around the world which include Spain, Argentina, Uruguay, Mexico, Bangladesh, India, Tunisia, China, Bolivia, and Columbia. It generates the majority of its revenues from the sales of its products through in the foreign markets.