Caravelle International Group (Caravelle International Group) ROIC % : 16.73% (As of Apr. 2023)

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What is Caravelle International Group 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 %. Caravelle International Group's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2023 was 16.73%.

As of today (2024-05-12), Caravelle International Group's WACC % is 9.61%. Caravelle International Group's ROIC % is 26.96% (calculated using TTM income statement data). Caravelle International Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Caravelle International Group ROIC % Historical Data

The historical data trend for Caravelle International Group'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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Caravelle International Group ROIC % Chart

Caravelle International Group Annual Data

Trend

Oct20

Oct21

Oct22

ROIC %

-45.11

76.49

156.34

Caravelle International Group Semi-Annual Data
	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23
ROIC %	Get a 7-Day Free Trial			17.13	127.83	227.13	37.92	16.73

Competitive Comparison of Caravelle International Group's ROIC %

For the Marine Shipping subindustry, Caravelle International Group'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.

Caravelle International Group's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Caravelle International Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Caravelle International Group's ROIC % falls into.

Caravelle International Group ROIC % Calculation

Caravelle International Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Oct. 2022 is calculated as:

	ROIC % (A: Oct. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Oct. 2021 )	+	Invested Capital (A: Oct. 2022 ))	/ count )
=	23.581 * ( 1 - 0.05% )	/	( (14.691	+	15.461)	/ 2 )
=	23.5692095	/	15.076
=	156.34 %

where

	Invested Capital		(A: Oct. 2021 )
=	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	))
=	27.186	-	6.821	-	( 10.354	-	max(0, 20.442	-	26.116	+	10.354	))
=	14.691

	Invested Capital		(A: Oct. 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	))
=	35.571	-	9.86	-	( 21.572	-	max(0, 23.179	-	33.429	+	21.572	))
=	15.461

Caravelle International Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Apr. 2023 is calculated as:

	ROIC % (Q: Apr. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2022 )	+	Invested Capital (Q: Apr. 2023 ))	/ count )
=	2.73 * ( 1 - 0% )	/	( (15.461	+	17.184)	/ 2 )
=	2.73	/	16.3225
=	16.73 %

where

	Invested Capital		(Q: Oct. 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	))
=	35.571	-	9.86	-	( 21.572	-	max(0, 23.179	-	33.429	+	21.572	))
=	15.461

	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	))
=	33.095	-	6.292	-	( 9.619	-	max(0, 21.23	-	30.988	+	9.619	))
=	17.184

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

Caravelle International Group (NAS:CACO) 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, Caravelle International Group's WACC % is 9.61%. Caravelle International Group's ROIC % is 26.96% (calculated using TTM income statement data). Caravelle International Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Caravelle International 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 %, 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.

Caravelle International Group ROIC % Related Terms

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Caravelle International Group (Caravelle International Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Caravelle International Group (NAS:CACO) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

60 Paya Lebar Road, No. 06-17 Paya Lebar Square, Singapore, SGP, 409051

Website

http://www.caravelleglobal.com

Caravelle International Group is an international operator of ocean transportation services. It is engaged in the seaborne transportation service under voyage contracts as well as vessel service for and on behalf of ship owners. The company has two operating segments namely, ocean transport and Heating business. The company derives the majority of its revenue from the Ocean transportation business. The company primarily derives freight revenue from voyage contracts and provides vessel service.