GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Al Seer Marine Supplies & Equipment PJSC (ADX:ASM) » Definitions » ROC %

Al Seer Marine Supplies & Equipment PJSC (ADX:ASM) ROC % : 1.72% (As of Dec. 2021)


View and export this data going back to 2021. Start your Free Trial

What is Al Seer Marine Supplies & Equipment PJSC ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Al Seer Marine Supplies & Equipment PJSC's annualized return on capital (ROC %) for the quarter that ended in Dec. 2021 was 1.72%.

As of today (2024-06-12), Al Seer Marine Supplies & Equipment PJSC's WACC % is 0.00%. Al Seer Marine Supplies & Equipment PJSC's ROC % is 0.00% (calculated using TTM income statement data). Al Seer Marine Supplies & Equipment PJSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Al Seer Marine Supplies & Equipment PJSC ROC % Historical Data

The historical data trend for Al Seer Marine Supplies & Equipment PJSC's ROC % 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.

Al Seer Marine Supplies & Equipment PJSC ROC % Chart

Al Seer Marine Supplies & Equipment PJSC Annual Data
Trend Dec20 Dec21
ROC %
9.01 1.72

Al Seer Marine Supplies & Equipment PJSC Semi-Annual Data
Dec20 Dec21
ROC % 9.01 1.72

Al Seer Marine Supplies & Equipment PJSC ROC % Calculation

Al Seer Marine Supplies & Equipment PJSC's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

ROC % (A: Dec. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2020 ) + Invested Capital (A: Dec. 2021 ))/ count )
=54.605 * ( 1 - 0% )/( (370.074 + 5978.628)/ 2 )
=54.605/3174.351
=1.72 %

where

Invested Capital(A: Dec. 2020 )
=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))
=717.817 - 173.702 - ( 174.041 - max(0, 419.904 - 676.45+174.041))
=370.074

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))
=6121.598 - 45.168 - ( 97.802 - max(0, 306.256 - 512.292+97.802))
=5978.628

Al Seer Marine Supplies & Equipment PJSC's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2021 is calculated as:

ROC % (Q: Dec. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2020 ) + Invested Capital (Q: Dec. 2021 ))/ count )
=54.605 * ( 1 - 0% )/( (370.074 + 5978.628)/ 2 )
=54.605/3174.351
=1.72 %

where

Invested Capital(Q: Dec. 2020 )
=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))
=717.817 - 173.702 - ( 174.041 - max(0, 419.904 - 676.45+174.041))
=370.074

Invested Capital(Q: 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))
=6121.598 - 45.168 - ( 97.802 - max(0, 306.256 - 512.292+97.802))
=5978.628

Note: The Operating Income data used here is one times the annual (Dec. 2021) 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.


Al Seer Marine Supplies & Equipment PJSC  (ADX:ASM) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Al Seer Marine Supplies & Equipment PJSC's WACC % is 0.00%. Al Seer Marine Supplies & Equipment PJSC's ROC % is 0.00% (calculated using TTM income statement data). Al Seer Marine Supplies & Equipment PJSC 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 %, ROC % 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.


Al Seer Marine Supplies & Equipment PJSC ROC % Related Terms

Thank you for viewing the detailed overview of Al Seer Marine Supplies & Equipment PJSC's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Al Seer Marine Supplies & Equipment PJSC (ADX:ASM) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Plot Number A-20, Sector MW-5, P.O. Box 33639, Mussafah Industrial City, Abu Dhabi, ARE
Al Seer Marine Supplies & Equipment PJSC is a marine company in the Arabian maritime region, with a portfolio of services that caters to all needs of boat owners, managers and crew. The services of the company include Boat Building, Maintenance Services, Yacht Management, Training Institute, and Maintenance services among others.