NAT Absolute Technologies PCL (BKK:NAT) ROC % : 165.87% (As of Mar. 2024)

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What is NAT Absolute Technologies PCL 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 %. NAT Absolute Technologies PCL's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 165.87%.

As of today (2024-05-22), NAT Absolute Technologies PCL's WACC % is 10.36%. NAT Absolute Technologies PCL's ROC % is 65.84% (calculated using TTM income statement data). NAT Absolute Technologies PCL 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.

NAT Absolute Technologies PCL ROC % Historical Data

The historical data trend for NAT Absolute Technologies PCL'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.

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NAT Absolute Technologies PCL ROC % Chart

NAT Absolute Technologies PCL Annual Data

Trend

Dec21

Dec22

ROC %

71.76

220.06

NAT Absolute Technologies PCL Quarterly Data
	Dec21	Sep22	Dec22	Mar23	Sep23	Mar24
ROC %	Get a 7-Day Free Trial			75.10	334.40	98.33	134.87	165.87

NAT Absolute Technologies PCL ROC % Calculation

NAT Absolute Technologies PCL's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	135.212 * ( 1 - 20.25% )	/	( (37.558	+	60.443)	/ 2 )
=	107.83157	/	49.0005
=	220.06 %

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	))
=	201.732	-	119.703	-	( 68.947	-	max(0, 125.739	-	170.21	+	68.947	))
=	37.558

	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	))
=	501.742	-	361.729	-	( 200.645	-	max(0, 377.087	-	456.657	+	200.645	))
=	60.443

NAT Absolute Technologies PCL's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	262.26 * ( 1 - 16.52% )	/	( (95.423	+	168.56)	/ 2 )
=	218.934648	/	131.9915
=	165.87 %

where

	Invested Capital		(Q: Sep. 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	))
=	619.562	-	366.628	-	( 214.839	-	max(0, 414.905	-	572.416	+	214.839	))
=	95.423

	Invested Capital		(Q: Mar. 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	))
=	1134.376	-	399.493	-	( 566.323	-	max(0, 425.116	-	1071.375	+	566.323	))
=	168.56

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

NAT Absolute Technologies PCL (BKK:NAT) 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, NAT Absolute Technologies PCL's WACC % is 10.36%. NAT Absolute Technologies PCL's ROC % is 65.84% (calculated using TTM income statement data). NAT Absolute Technologies PCL 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.

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.

NAT Absolute Technologies PCL ROC % Related Terms

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NAT Absolute Technologies PCL (BKK:NAT) Business Description

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NAT Absolute Technologies PCL is engaged in information and communication technology services in Thailand. It provides consulting services, design, procure and distribute equipment ready for installation, including providing contract system installation services related to information and communication technology systems (Information and Communication Technology System Integration).