Industrias BachocoB de CV (Industrias BachocoB de CV) ROC % : 14.49% (As of Sep. 2023)

View and export this data going back to 2015. Start your Free Trial

What is Industrias BachocoB de CV 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 %. Industrias BachocoB de CV's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 14.49%.

As of today (2024-06-08), Industrias BachocoB de CV's WACC % is 18.37%. Industrias BachocoB de CV's ROC % is 10.74% (calculated using TTM income statement data). Industrias BachocoB de CV earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Industrias BachocoB de CV ROC % Historical Data

The historical data trend for Industrias BachocoB de CV'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.

Industrias BachocoB de CV ROC % Chart

Industrias BachocoB de CV Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

Get a 7-Day Free Trial

9.64

9.89

9.73

12.43

16.33

Industrias BachocoB de CV Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROC %	Get a 7-Day Free Trial															8.35	-1.02	11.64	14.97	14.49

Industrias BachocoB de CV ROC % Calculation

Industrias BachocoB de CV'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 )
=	430.134 * ( 1 - 25.19% )	/	( (1727.018	+	2214.554)	/ 2 )
=	321.7832454	/	1970.786
=	16.33 %

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	))
=	3216.767	-	481.833	-	( 1007.916	-	max(0, 625.685	-	1844.866	+	1007.916	))
=	1727.018

	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	))
=	3722.243	-	480.965	-	( 1026.724	-	max(0, 547.15	-	2053.436	+	1026.724	))
=	2214.554

Industrias BachocoB de CV's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	506.828 * ( 1 - 25.99% )	/	( (2448.509	+	2727.928)	/ 2 )
=	375.1034028	/	2588.2185
=	14.49 %

where

	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	))
=	4243.334	-	591.353	-	( 1203.472	-	max(0, 695.717	-	2328.333	+	1203.472	))
=	2448.509

	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	))
=	4474.761	-	646.694	-	( 1100.139	-	max(0, 816.085	-	2384.611	+	1100.139	))
=	2727.928

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

Industrias BachocoB de CV (OTCPK:IDBHF) 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, Industrias BachocoB de CV's WACC % is 18.37%. Industrias BachocoB de CV's ROC % is 10.74% (calculated using TTM income statement data). Industrias BachocoB de CV 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.

Industrias BachocoB de CV ROC % Related Terms

Thank you for viewing the detailed overview of Industrias BachocoB de CV's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Industrias BachocoB de CV (Industrias BachocoB de CV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Industrias Bachoco SAB de CV (OTCPK:IDBHF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

BACHOCOB:Mexico

Address

Avenida Tecnologico 401, Ciudad Industrial, Celaya, GTO, MEX, 38010

Website

https://www.bachoco.com.mx

Industrias Bachoco SAB de CV produces, processes, markets, and sells poultry (chicken and eggs) in both Mexico and the United States. Additionally, it sells feed, swine, beef, turkey, and other products on a smaller scale. The company's poultry business begins with purchasing infant birds and raising the birds to maturity. Industrias Bachoco operates its own feed mills to produce balanced feed for internal use, and to sell to third parties. Several production facilities and distribution centers are located throughout Mexico and the United States to minimize transportation costs, and the company sells through wholesalers, supermarkets, retail, and other niche marketing channels. It generates the majority of its revenue from the Poultry segment.