New Zealand Kinglmon Investments (New Zealand Kinglmon Investments) ROC % : 16.11% (As of Jan. 2024)

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What is New Zealand Kinglmon Investments 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 %. New Zealand Kinglmon Investments's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was 16.11%.

As of today (2024-05-23), New Zealand Kinglmon Investments's WACC % is 12.60%. New Zealand Kinglmon Investments's ROC % is 12.58% (calculated using TTM income statement data). New Zealand Kinglmon Investments earns returns that do not match up to its cost of capital. It will destroy value as it grows.

New Zealand Kinglmon Investments ROC % Historical Data

The historical data trend for New Zealand Kinglmon Investments'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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New Zealand Kinglmon Investments ROC % Chart

New Zealand Kinglmon Investments Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jan22

Jan23

Jan24

ROC %

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5.81

7.10

-10.42

-2.40

12.02

New Zealand Kinglmon Investments Semi-Annual Data
	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Jan22	Jul22	Jan23	Jul23	Jan24
ROC %	Get a 7-Day Free Trial										-18.49	-35.60	27.41	8.94	16.11

New Zealand Kinglmon Investments ROC % Calculation

New Zealand Kinglmon Investments's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2024 is calculated as:

	ROC % (A: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2023 )	+	Invested Capital (A: Jan. 2024 ))	/ count )
=	19.334 * ( 1 - 28.98% )	/	( (107.815	+	120.605)	/ 2 )
=	13.7310068	/	114.21
=	12.02 %

where

	Invested Capital		(A: Jan. 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	))
=	128.866	-	8.746	-	( 12.305	-	max(0, 14.378	-	81.908	+	12.305	))
=	107.815

	Invested Capital		(A: Jan. 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	))
=	147.406	-	10.201	-	( 16.6	-	max(0, 18.269	-	102.306	+	16.6	))
=	120.605

New Zealand Kinglmon Investments's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	25.548 * ( 1 - 29.22% )	/	( (103.945	+	120.605)	/ 2 )
=	18.0828744	/	112.275
=	16.11 %

where

	Invested Capital		(Q: Jul. 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	))
=	130.196	-	8.391	-	( 17.86	-	max(0, 14.874	-	88.381	+	17.86	))
=	103.945

	Invested Capital		(Q: Jan. 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	))
=	147.406	-	10.201	-	( 16.6	-	max(0, 18.269	-	102.306	+	16.6	))
=	120.605

Note: The Operating Income data used here is two times the semi-annual (Jan. 2024) data.

New Zealand Kinglmon Investments (OTCPK:NZKSF) 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, New Zealand Kinglmon Investments's WACC % is 12.60%. New Zealand Kinglmon Investments's ROC % is 12.58% (calculated using TTM income statement data). New Zealand Kinglmon Investments 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.

New Zealand Kinglmon Investments ROC % Related Terms

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New Zealand Kinglmon Investments (New Zealand Kinglmon Investments) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » New Zealand King Salmon Investments Ltd (OTCPK:NZKSF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

NZK:New Zealand NZK:Australia

Address

17 Bullen Street, Tahunanui, Nelson, STL, NZL, 7011

Website

https://www.kingsalmon.co.nz

New Zealand King Salmon Investments Ltd is engaged in the farming, processing, and sale of salmon products. Its brands include Regal, Southern Ocean, Omega Plus, Ora King, and King Salmon. Its product range includes Whole fish; Fillets, Steaks & Portions; Wood Roasted; Cold Smoked; and Others. The company's geographical area of revenue are North America, Australia, Japan, China, Europe, Others and majority being from New Zealand.

New Zealand Kinglmon Investments (New Zealand Kinglmon Investments) Headlines

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