Wonderful Times Group AB (XSAT:WTG) ROIC % : 7.51% (As of Sep. 2024)

View and export this data going back to 2008. Start your Free Trial

What is Wonderful Times Group AB 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 %. Wonderful Times Group AB's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 7.51%.

As of today (2024-12-13), Wonderful Times Group AB's WACC % is 1.48%. Wonderful Times Group AB's ROIC % is 2.43% (calculated using TTM income statement data). Wonderful Times Group AB 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.

Wonderful Times Group AB ROIC % Historical Data

The historical data trend for Wonderful Times Group AB'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.

Wonderful Times Group AB ROIC % Chart

Wonderful Times Group AB Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

Get a 7-Day Free Trial

6.35

16.19

3.36

0.88

Wonderful Times Group AB Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROIC %	Get a 7-Day Free Trial															8.07	4.54	2.77	-5.62	7.51

Competitive Comparison of Wonderful Times Group AB's ROIC %

For the Leisure subindustry, Wonderful Times Group AB'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.

Wonderful Times Group AB's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Wonderful Times Group AB's ROIC % distribution charts can be found below:

* The bar in red indicates where Wonderful Times Group AB's ROIC % falls into.

Wonderful Times Group AB ROIC % Calculation

Wonderful Times Group AB's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	0.857 * ( 1 - 37.66% )	/	( (62.218	+	58.771)	/ 2 )
=	0.5342538	/	60.4945
=	0.88 %

where

	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	))
=	70.614	-	3.253	-	( 5.143	-	max(0, 13.374	-	63.085	+	5.143	))
=	62.218

	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	))
=	68.091	-	2.871	-	( 6.449	-	max(0, 12.285	-	61.326	+	6.449	))
=	58.771

Wonderful Times Group AB's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROIC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	5.568 * ( 1 - 20.61% )	/	( (55.335	+	62.315)	/ 2 )
=	4.4204352	/	58.825
=	7.51 %

where

	Invested Capital		(Q: Jun. 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	))
=	63.534	-	3.85	-	( 4.349	-	max(0, 10.094	-	56.581	+	4.349	))
=	55.335

	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	))
=	68.001	-	4.268	-	( 1.418	-	max(0, 13.455	-	61.336	+	1.418	))
=	62.315

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Wonderful Times Group AB (XSAT:WTG) 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, Wonderful Times Group AB's WACC % is 1.48%. Wonderful Times Group AB's ROIC % is 2.43% (calculated using TTM income statement data). Wonderful Times Group AB 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. Wonderful Times Group AB 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.

Wonderful Times Group AB ROIC % Related Terms

Thank you for viewing the detailed overview of Wonderful Times Group AB's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Wonderful Times Group AB Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Wonderful Times Group AB (XSAT:WTG) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Betavagen 10, Jonkoping, SWE, 556 52

Website

http://www.wonderfultimes.se

Wonderful Times Group AB is engaged in the development and sale of products for the Nordic children's market. It offers toys for babies and children as well as stroller accessories and games for children and families.

Wonderful Times Group AB Headlines

No Headlines