Titas Gas Transmission & Distribution Co (DHA:TITASGAS) ROIC % : -8.54% (As of Mar. 2024)

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What is Titas Gas Transmission & Distribution Co 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 %. Titas Gas Transmission & Distribution Co's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was -8.54%.

As of today (2024-05-24), Titas Gas Transmission & Distribution Co's WACC % is 8.89%. Titas Gas Transmission & Distribution Co's ROIC % is -5.83% (calculated using TTM income statement data). Titas Gas Transmission & Distribution Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Titas Gas Transmission & Distribution Co ROIC % Historical Data

The historical data trend for Titas Gas Transmission & Distribution Co'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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Titas Gas Transmission & Distribution Co ROIC % Chart

Titas Gas Transmission & Distribution Co Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROIC %

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1.55

0.56

1.34

1.05

-3.61

Titas Gas Transmission & Distribution Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROIC %	Get a 7-Day Free Trial															-6.33	-9.28	-1.53	-1.36	-8.54

Competitive Comparison of Titas Gas Transmission & Distribution Co's ROIC %

For the Utilities - Regulated Gas subindustry, Titas Gas Transmission & Distribution Co'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.

Titas Gas Transmission & Distribution Co's ROIC % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Titas Gas Transmission & Distribution Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Titas Gas Transmission & Distribution Co's ROIC % falls into.

Titas Gas Transmission & Distribution Co ROIC % Calculation

Titas Gas Transmission & Distribution Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROIC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-4864.928 * ( 1 - 7.17% )	/	( (128703.494	+	121726.227)	/ 2 )
=	-4516.1126624	/	125214.8605
=	-3.61 %

where

	Invested Capital		(A: Jun. 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	))
=	186865.85	-	44270.853	-	( 13891.503	-	max(0, 79564.453	-	124195.88	+	13891.503	))
=	128703.494

	Invested Capital		(A: 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	))
=	245924.432	-	101079.078	-	( 23119.127	-	max(0, 137001.136	-	180610.545	+	23119.127	))
=	121726.227

Titas Gas Transmission & Distribution Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROIC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-9461.764 * ( 1 - -12.89% )	/	( (124198.118	+	125936.255)	/ 2 )
=	-10681.3853796	/	125067.1865
=	-8.54 %

where

	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	))
=	279884.015	-	130022.608	-	( 25663.289	-	max(0, 167826.8	-	214494.266	+	25663.289	))
=	124198.118

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	297669.904	-	148131.803	-	( 23601.846	-	max(0, 185961.597	-	226979.618	+	23601.846	))
=	125936.255

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Titas Gas Transmission & Distribution Co (DHA:TITASGAS) 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, Titas Gas Transmission & Distribution Co's WACC % is 8.89%. Titas Gas Transmission & Distribution Co's ROIC % is -5.83% (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.

Titas Gas Transmission & Distribution Co ROIC % Related Terms

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Titas Gas Transmission & Distribution Co (DHA:TITASGAS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Titas Gas Transmission & Distribution Co Ltd (DHA:TITASGAS) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

105, Kazi Nazrul Islam Avenue, 2nd Floor, Titas Gas Bhaban, Kawran Bazar Commerial Area, Dhaka, BGD, 1215

Website

https://www.titasgas.org.bd

Titas Gas Transmission & Distribution Co Ltd is principally engaged in the business of natural gas distribution. It operates through the segments that are distributed the same to the consumers in power, fertilizer, industrial, captive power, and commercial. Geographically it operates through the region of Bangladesh. Majority of the firm's revenue is generated from Natural Gas Distribution.

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