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Webuy Global (Webuy Global) ROC % : -25.69% (As of Dec. 2023)


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What is Webuy Global 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 %. Webuy Global's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -25.69%.

As of today (2024-05-26), Webuy Global's WACC % is 10.09%. Webuy Global's ROC % is -55.27% (calculated using TTM income statement data). Webuy Global earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Webuy Global ROC % Historical Data

The historical data trend for Webuy Global'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.

Webuy Global ROC % Chart

Webuy Global Annual Data
Trend Dec21 Dec22 Dec23
ROC %
-376.99 -215.88 -57.56

Webuy Global Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23
ROC % - -413.96 -123.16 -99.35 -25.69

Webuy Global ROC % Calculation

Webuy Global'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 )
=-5.153 * ( 1 - 0% )/( (4.651 + 13.255)/ 2 )
=-5.153/8.953
=-57.56 %

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))
=7.991 - 7.031 - ( 1.554 - max(0, 10.282 - 6.591+1.554))
=4.651

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))
=30.233 - 13.761 - ( 5.394 - max(0, 22.178 - 25.395+5.394))
=13.255

Webuy Global'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 )
=-2.996 * ( 1 - 0% )/( (10.065 + 13.255)/ 2 )
=-2.996/11.66
=-25.69 %

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))
=11.523 - 9.647 - ( 0.927 - max(0, 15.796 - 7.607+0.927))
=10.065

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))
=30.233 - 13.761 - ( 5.394 - max(0, 22.178 - 25.395+5.394))
=13.255

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

* 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.

Webuy Global  (NAS:WBUY) 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, Webuy Global's WACC % is 10.09%. Webuy Global's ROC % is -55.27% (calculated using TTM income statement data). Webuy Global 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.

Webuy Global ROC % Related Terms

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Webuy Global (Webuy Global) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Webuy Global Ltd (NAS:WBUY) » Definitions » ROC %
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Traded in Other Exchanges
N/A
Address
35 Tampines Street 92, Singapore, SGP, 528880
Website
https://www.webuysg.com
Webuy Global Ltd is an emerging Southeast Asian (SEA) community-oriented e-commerce retailer (Community e-Commerce Retailor) with a focus on grocery and travel. Community e-commerce is a deepened extension form of e-commerce, where social media users with mutual interest and like-minded behavior are connected, forming a community group within a network through an online medium. Its mission is to make social shopping a new lifestyle for consumers and to empower consumers' purchases with an efficient cost-saving purchasing model. The company is also engaged in selling packaged tours to its customer. The majority of revenue is derived from the sales of groceries through its online platform.