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Globavend Holdings (Globavend Holdings) ROIC % : 272.27% (As of Sep. 2023)


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What is Globavend Holdings 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 %. Globavend Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was 272.27%.

As of today (2024-05-12), Globavend Holdings's WACC % is 10.03%. Globavend Holdings's ROIC % is 219.61% (calculated using TTM income statement data). Globavend Holdings 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.


Globavend Holdings ROIC % Historical Data

The historical data trend for Globavend Holdings'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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Globavend Holdings ROIC % Chart

Globavend Holdings Annual Data
Trend Sep21 Sep22 Sep23
ROIC %
78.52 128.30 201.99

Globavend Holdings Semi-Annual Data
Sep21 Mar22 Sep22 Mar23 Sep23
ROIC % - 105.25 159.42 185.31 272.27

Competitive Comparison of Globavend Holdings's ROIC %

For the Integrated Freight & Logistics subindustry, Globavend Holdings'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.


Globavend Holdings's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Globavend Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Globavend Holdings's ROIC % falls into.



Globavend Holdings ROIC % Calculation

Globavend Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Sep. 2023 is calculated as:

ROIC % (A: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2022 ) + Invested Capital (A: Sep. 2023 ))/ count )
=1.147 * ( 1 - 15.12% )/( (0.47 + 0.494)/ 2 )
=0.9735736/0.482
=201.99 %

where

Globavend Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

ROIC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=1.406 * ( 1 - 16.73% )/( (0.366 + 0.494)/ 2 )
=1.1707762/0.43
=272.27 %

where

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


Globavend Holdings  (NAS:GVH) 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, Globavend Holdings's WACC % is 10.03%. Globavend Holdings's ROIC % is 219.61% (calculated using TTM income statement data). Globavend Holdings 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. Globavend Holdings 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.


Globavend Holdings ROIC % Related Terms

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Globavend Holdings (Globavend Holdings) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Office 1401, Level 14, 197, St Georges Tce, Perth, WA, AUS, 6000
Globavend Holdings Ltd is a e-commerce logistics provider it provides integrated cross-border logistics services from Hong Kong to Australia and New Zealand, where they provide customers with a one-stop solution from parcel consolidation to air freight forwarding, customs clearance, on-carriage parcel transportation and delivery. It operates in logistics and freight forwarding industry, which involves the provision of services such as freight transport, freight forwarding, warehouse management, and distribution.

Globavend Holdings (Globavend Holdings) Headlines

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