United Projects Co for Aviation Services KSCC (KUW:UPAC) ROIC % : 1.22% (As of Mar. 2024)

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What is United Projects Co for Aviation Services KSCC 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 %. United Projects Co for Aviation Services KSCC's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 1.22%.

As of today (2024-05-28), United Projects Co for Aviation Services KSCC's WACC % is 3.43%. United Projects Co for Aviation Services KSCC's ROIC % is 1.93% (calculated using TTM income statement data). United Projects Co for Aviation Services KSCC earns returns that do not match up to its cost of capital. It will destroy value as it grows.

United Projects Co for Aviation Services KSCC ROIC % Historical Data

The historical data trend for United Projects Co for Aviation Services KSCC'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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United Projects Co for Aviation Services KSCC ROIC % Chart

United Projects Co for Aviation Services KSCC Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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5.07

-0.68

1.59

2.22

2.40

United Projects Co for Aviation Services KSCC 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															1.89	1.48	3.83	1.14	1.22

Competitive Comparison of United Projects Co for Aviation Services KSCC's ROIC %

For the Airports & Air Services subindustry, United Projects Co for Aviation Services KSCC'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.

United Projects Co for Aviation Services KSCC's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, United Projects Co for Aviation Services KSCC's ROIC % distribution charts can be found below:

* The bar in red indicates where United Projects Co for Aviation Services KSCC's ROIC % falls into.

United Projects Co for Aviation Services KSCC ROIC % Calculation

United Projects Co for Aviation Services KSCC's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	6.35 * ( 1 - 2.65% )	/	( (186.494	+	328.764)	/ 2 )
=	6.181725	/	257.629
=	2.40 %

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	))
=	193.622	-	87.58	-	( 4.472	-	max(0, 87.58	-	7.128	+	4.472	))
=	186.494

	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	))
=	226.08	-	6.991	-	( 6.715	-	max(0, 118.497	-	8.822	+	6.715	))
=	328.764

United Projects Co for Aviation Services KSCC'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 )
=	4.272 * ( 1 - 4.56% )	/	( (328.764	+	342.052)	/ 2 )
=	4.0771968	/	335.408
=	1.22 %

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	))
=	226.08	-	6.991	-	( 6.715	-	max(0, 118.497	-	8.822	+	6.715	))
=	328.764

	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	))
=	233.328	-	6.672	-	( 7.5	-	max(0, 125.079	-	9.683	+	7.5	))
=	342.052

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

United Projects Co for Aviation Services KSCC (KUW:UPAC) 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, United Projects Co for Aviation Services KSCC's WACC % is 3.43%. United Projects Co for Aviation Services KSCC's ROIC % is 1.93% (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.

United Projects Co for Aviation Services KSCC ROIC % Related Terms

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United Projects Co for Aviation Services KSCC (KUW:UPAC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » United Projects Co for Aviation Services KSCC (KUW:UPAC) » Definitions » ROIC %

Traded in Other Exchanges

N/A

Address

Kuwait International Airport, Mezzanine Parking, P. O. Box 27068, Safat, Kuwait, KWT, 13131

Website

https://www.upac.com.kw

United Projects Co for Aviation Services KSCC is a Kuwait-based company. Its services include project management and consultancy, real estate development, and property and facilities management. The company's services are used by retailers, food and beverage companies, airline companies, and financial institutions. The company operates in two business segments. Investments consist of investing in Reem Mall and surplus funds in investment portfolios. Service operations consist of managing projects and providing airplane ground and cleaning services among other services. The service operations segment generates maximum revenue for the company. Their projects portfolio includes Airport Mall and Facilities, Sheikh Saad Terminal, Discovery Center, and Reem Mall.

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