Vibrant Group (SGX:BIP) ROC % : 1.39% (As of Oct. 2023)

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What is Vibrant Group 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 %. Vibrant Group's annualized return on capital (ROC %) for the quarter that ended in Oct. 2023 was 1.39%.

As of today (2024-06-10), Vibrant Group's WACC % is 5.35%. Vibrant Group's ROC % is 2.73% (calculated using TTM income statement data). Vibrant Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Vibrant Group ROC % Historical Data

The historical data trend for Vibrant Group'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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Vibrant Group ROC % Chart

Vibrant Group Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

ROC %

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1.71

-1.17

1.25

1.44

0.78

Vibrant Group Semi-Annual Data
	Apr14	Oct14	Apr15	Oct15	Apr16	Oct16	Apr17	Oct17	Apr18	Oct18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23
ROC %	Get a 7-Day Free Trial															1.65	1.50	1.97	3.57	1.39

Vibrant Group ROC % Calculation

Vibrant Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2023 is calculated as:

	ROC % (A: Apr. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Apr. 2022 )	+	Invested Capital (A: Apr. 2023 ))	/ count )
=	16.019 * ( 1 - 76.52% )	/	( (504.706	+	460.623)	/ 2 )
=	3.7612612	/	482.6645
=	0.78 %

where

	Invested Capital		(A: Apr. 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	))
=	561.497	-	30.777	-	( 75.233	-	max(0, 141.022	-	167.036	+	75.233	))
=	504.706

	Invested Capital		(A: Apr. 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	))
=	505.997	-	25.897	-	( 75.434	-	max(0, 108.135	-	127.612	+	75.434	))
=	460.623

Vibrant Group's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2023 is calculated as:

	ROC % (Q: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Apr. 2023 )	+	Invested Capital (Q: Oct. 2023 ))	/ count )
=	3.77 * ( 1 - -65.98% )	/	( (460.623	+	438.105)	/ 2 )
=	6.257446	/	449.364
=	1.39 %

where

	Invested Capital		(Q: Apr. 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	))
=	505.997	-	25.897	-	( 75.434	-	max(0, 108.135	-	127.612	+	75.434	))
=	460.623

	Invested Capital		(Q: Oct. 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	))
=	481.683	-	24.393	-	( 70.54	-	max(0, 100.683	-	119.868	+	70.54	))
=	438.105

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

Vibrant Group (SGX:BIP) 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, Vibrant Group's WACC % is 5.35%. Vibrant Group's ROC % is 2.73% (calculated using TTM income statement data). Vibrant Group 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.

Vibrant Group ROC % Related Terms

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Vibrant Group (SGX:BIP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Vibrant Group Ltd (SGX:BIP) » Definitions » ROC %

Comparable Companies

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Address

51 Penjuru Road No. 04-00, Freight Links Express Logisticentre, Singapore, SGP, 609143

Website

https://www.vibrant.com.sg

Vibrant Group Ltd offers integrated logistics services, design and building of commercial and industrial facilities and property development. The company's operating segment includes Freight and logistics; Financial services and Real estate. It generates maximum revenue from the Freight and logistics segment. The freight and logistics segment provides logistics services, including warehousing services, transportation services, inventory management services, and record management services. Geographically, it derives a majority of revenue from Singapore.