ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Electra Consumer Products's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 0.81%.
As of today (2024-06-22), Electra Consumer Products's WACC % is 7.26%. Electra Consumer Products's ROIC % is 2.95% (calculated using TTM income statement data).
Electra Consumer Products earns returns that do not match up to its cost of capital. It will destroy value as it grows.
* 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 Electra Consumer Products's ROIC %
For the Consumer Electronics subindustry, Electra Consumer Products'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.
Electra Consumer Products's ROIC % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Electra Consumer Products's ROIC % distribution charts can be found below:
* The bar in red indicates where Electra Consumer Products's ROIC % falls into.
Electra Consumer Products ROIC % Calculation
Electra Consumer Products's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Mar. 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.
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, Electra Consumer Products's WACC % is 7.26%. Electra Consumer Products's ROIC % is 2.95% (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.
Electra Consumer Products ROIC % Related Terms
Thank you for viewing the detailed overview of Electra Consumer Products's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Electra Consumer Products (XTAE:ECP) Business Description
Electra Consumer Products Ltd engages in the field of household electrical appliances, air conditioning, and communications. The group operates in three fields of operations of which the First field is importing, manufacturing, exporting, marketing, sale, and distribution of electrical consumer products as well as the provision of services for products; the Second field consists of the operation of retail marketing chains for the sale of electrical consumer products in Israel and the Third field includes the operation of "Do It Yourself" chains - retail chains specializing in the provision of home design and maintenance solutions and in the field of products for motor vehicles field. Geographically, the firm is Israel based and it derives revenue from sales and the provision of services.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
XTAE:ECP has been successfully added to your 