Thai Cane Paper Public Company Limited (BKK:TCP) ROIC % : 11.61% (As of Sep. 2013)

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What is Thai Cane Paper Public Company Limited ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Thai Cane Paper Public Company Limited's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2013 was 11.61%.

As of today (2024-06-02), Thai Cane Paper Public Company Limited's WACC % is 0.00%. Thai Cane Paper Public Company Limited's ROIC % is 0.00% (calculated using TTM income statement data). Thai Cane Paper Public Company Limited earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Thai Cane Paper Public Company Limited ROIC % Historical Data

The historical data trend for Thai Cane Paper Public Company Limited's ROIC % 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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Thai Cane Paper Public Company Limited ROIC % Chart

Thai Cane Paper Public Company Limited Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

ROIC %

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-0.97

3.65

5.29

5.92

9.15

Thai Cane Paper Public Company Limited Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13
ROIC %	Get a 7-Day Free Trial											10.96	10.19	14.73	9.90	11.61

Competitive Comparison of Thai Cane Paper Public Company Limited's ROIC %

For the Paper & Paper Products subindustry, Thai Cane Paper Public Company Limited's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Thai Cane Paper Public Company Limited's ROIC % Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Thai Cane Paper Public Company Limited's ROIC % distribution charts can be found below:

* The bar in red indicates where Thai Cane Paper Public Company Limited's ROIC % falls into.

Thai Cane Paper Public Company Limited ROIC % Calculation

Thai Cane Paper Public Company Limited's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2012 is calculated as:

	ROIC % (A: Dec. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2011 )	+	Invested Capital (A: Dec. 2012 ))	/ count )
=	649.376 * ( 1 - 22.29% )	/	( (5575.916	+	5458.551)	/ 2 )
=	504.6300896	/	5517.2335
=	9.15 %

where

	Invested Capital		(A: Dec. 2011 )
=	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	))
=	6408.718	-	501.849	-	( 330.953	-	max(0, 695.857	-	1803.007	+	330.953	))
=	5575.916

	Invested Capital		(A: Dec. 2012 )
=	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	))
=	6514.682	-	497.159	-	( 558.972	-	max(0, 718.617	-	2082.542	+	558.972	))
=	5458.551

Thai Cane Paper Public Company Limited's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2013 is calculated as:

	ROIC % (Q: Sep. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2013 )	+	Invested Capital (Q: Sep. 2013 ))	/ count )
=	794.612 * ( 1 - 19.86% )	/	( (5508.206	+	5460.496)	/ 2 )
=	636.8020568	/	5484.351
=	11.61 %

where

	Invested Capital		(Q: Jun. 2013 )
=	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	))
=	6494.672	-	494.58	-	( 491.886	-	max(0, 721.135	-	2080.312	+	491.886	))
=	5508.206

	Invested Capital		(Q: Sep. 2013 )
=	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	))
=	6614	-	500.654	-	( 652.85	-	max(0, 728.438	-	2229.64	+	652.85	))
=	5460.496

Note: The Operating Income data used here is four times the quarterly (Sep. 2013) data.

Thai Cane Paper Public Company Limited (BKK:TCP) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Thai Cane Paper Public Company Limited's WACC % is 0.00%. Thai Cane Paper Public Company Limited's ROIC % is 0.00% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

Thai Cane Paper Public Company Limited ROIC % Related Terms

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Thai Cane Paper Public Company Limited (BKK:TCP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Thai Cane Paper Public Company Limited (BKK:TCP) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

Website

http://www.thaicane.com

Thai Cane Paper Public Company Limited manufactures and sells kraft paper used in the manufacture of packaging, such as corrugated box, paper cement bags, envelopes and core paper in Thailand. The Company's products are categorized into two groups i.e. kraft liner board which is used in making packaging surfaces and kraft paper which is used for making corrugated medium. The Company offers numerous grade of products to meet the diverse market demand.