PT Diamond Food Indonesia Tbk (ISX:DMND) ROC % : 4.61% (As of Mar. 2024)

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What is PT Diamond Food Indonesia Tbk 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 %. PT Diamond Food Indonesia Tbk's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 4.61%.

As of today (2024-06-10), PT Diamond Food Indonesia Tbk's WACC % is 6.91%. PT Diamond Food Indonesia Tbk's ROC % is 5.49% (calculated using TTM income statement data). PT Diamond Food Indonesia Tbk earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PT Diamond Food Indonesia Tbk ROC % Historical Data

The historical data trend for PT Diamond Food Indonesia Tbk'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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PT Diamond Food Indonesia Tbk ROC % Chart

PT Diamond Food Indonesia Tbk Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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10.47

4.71

8.05

8.24

6.06

PT Diamond Food Indonesia Tbk Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															7.24	7.55	3.75	6.12	4.61

PT Diamond Food Indonesia Tbk ROC % Calculation

PT Diamond Food Indonesia Tbk's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	402296 * ( 1 - 22.77% )	/	( (4760578	+	5498315)	/ 2 )
=	310693.2008	/	5129446.5
=	6.06 %

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	))
=	6878297	-	1091600	-	( 1026119	-	max(0, 1312391	-	4275936	+	1026119	))
=	4760578

	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	))
=	7166880	-	1121900	-	( 546665	-	max(0, 1163284	-	4138435	+	546665	))
=	5498315

PT Diamond Food Indonesia Tbk'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: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	349744 * ( 1 - 27.49% )	/	( (5498315	+	5512988)	/ 2 )
=	253599.3744	/	5505651.5
=	4.61 %

where

	Invested Capital		(Q: 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	))
=	7166880	-	1121900	-	( 546665	-	max(0, 1163284	-	4138435	+	546665	))
=	5498315

	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	))
=	7128350	-	1014495	-	( 600867	-	max(0, 1055141	-	4154842	+	600867	))
=	5512988

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

PT Diamond Food Indonesia Tbk (ISX:DMND) 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, PT Diamond Food Indonesia Tbk's WACC % is 6.91%. PT Diamond Food Indonesia Tbk's ROC % is 5.49% (calculated using TTM income statement data). PT Diamond Food Indonesia Tbk 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.

PT Diamond Food Indonesia Tbk ROC % Related Terms

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PT Diamond Food Indonesia Tbk (ISX:DMND) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » PT Diamond Food Indonesia Tbk (ISX:DMND) » Definitions » ROC %

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Address

Jalan KH Mas Mansyur Kav, 126TCC Batavia Tower One, 15th Floor, Unit 03 and 05, TCC Batavia Tower One, Jakarta Pusat, Jakarta, IDN, 10220

Website

https://www.diamondfoodindonesia.com

PT Diamond Food Indonesia Tbk is engaged in the manufacturing and distribution of consumer goods. Its products include dairy, confectionery, meats and seafood, bakery, groceries as well as fruits and vegetables. The company categorizes its business into two segments that are branded products and non-branded products, out of which the majority of the revenue is generated from branded products. Some of the company's brands include Biggy, Biokul, Diamond Juice, Popeye, and Magic. It also collaborates with international brands and distributes its products. Geographically the company generates the majority of revenue in Indonesia and also exports internationally.