Aljouf Mineral Water Bottling Co (SAU:9532) ROC % : 2.45% (As of Dec. 2023)

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What is Aljouf Mineral Water Bottling Co 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 %. Aljouf Mineral Water Bottling Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 2.45%.

As of today (2024-06-06), Aljouf Mineral Water Bottling Co's WACC % is 8.17%. Aljouf Mineral Water Bottling Co's ROC % is 2.49% (calculated using TTM income statement data). Aljouf Mineral Water Bottling Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Aljouf Mineral Water Bottling Co ROC % Historical Data

The historical data trend for Aljouf Mineral Water Bottling Co'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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Aljouf Mineral Water Bottling Co ROC % Chart

Aljouf Mineral Water Bottling Co Annual Data

Trend

Dec21

Dec22

Dec23

ROC %

2.58

3.44

2.47

Aljouf Mineral Water Bottling Co Semi-Annual Data
	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial			2.39	2.87	4.11	2.54	2.45

Aljouf Mineral Water Bottling Co ROC % Calculation

Aljouf Mineral Water Bottling Co'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 )
=	5.788 * ( 1 - 3.3% )	/	( (212.944	+	241.034)	/ 2 )
=	5.596996	/	226.989
=	2.47 %

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	))
=	198.637	-	23.95	-	( 5.276	-	max(0, 79.499	-	41.242	+	5.276	))
=	212.944

	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	))
=	209.899	-	0	-	( 4.286	-	max(0, 78.033	-	46.898	+	4.286	))
=	241.034

Aljouf Mineral Water Bottling Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	5.896 * ( 1 - 3.7% )	/	( (221.535	+	241.034)	/ 2 )
=	5.677848	/	231.2845
=	2.45 %

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	))
=	212.456	-	24.201	-	( 5.172	-	max(0, 82.441	-	49.161	+	5.172	))
=	221.535

	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	))
=	209.899	-	0	-	( 4.286	-	max(0, 78.033	-	46.898	+	4.286	))
=	241.034

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Aljouf Mineral Water Bottling Co (SAU:9532) 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, Aljouf Mineral Water Bottling Co's WACC % is 8.17%. Aljouf Mineral Water Bottling Co's ROC % is 2.49% (calculated using TTM income statement data). Aljouf Mineral Water Bottling Co 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.

Aljouf Mineral Water Bottling Co ROC % Related Terms

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Aljouf Mineral Water Bottling Co (SAU:9532) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » Aljouf Mineral Water Bottling Co (SAU:9532) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Bin Ahmed Al Sudairi Street, Al Waha District - Turki, Riyadh, SAU

Website

https://www.hilwawater.sa

Aljouf Mineral Water Bottling Co is involved in the production and bottling of mineral water, production and bottling of filtered pure water, and manufacturing of bottles in various forms of plastics.

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