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Al Hassan Ghazi Ibrahim Shaker (SAU:1214) ROIC % : 11.20% (As of Mar. 2024)


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What is Al Hassan Ghazi Ibrahim Shaker 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 %. Al Hassan Ghazi Ibrahim Shaker's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 11.20%.

As of today (2024-05-24), Al Hassan Ghazi Ibrahim Shaker's WACC % is 7.87%. Al Hassan Ghazi Ibrahim Shaker's ROIC % is 6.89% (calculated using TTM income statement data). Al Hassan Ghazi Ibrahim Shaker earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Al Hassan Ghazi Ibrahim Shaker ROIC % Historical Data

The historical data trend for Al Hassan Ghazi Ibrahim Shaker'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.

* Premium members only.

Al Hassan Ghazi Ibrahim Shaker ROIC % Chart

Al Hassan Ghazi Ibrahim Shaker Annual Data
Trend Dec12 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.21 0.80 3.06 2.92 6.15

Al Hassan Ghazi Ibrahim Shaker 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.91 5.60 5.03 6.41 11.20

Competitive Comparison of Al Hassan Ghazi Ibrahim Shaker's ROIC %

For the Electronics & Computer Distribution subindustry, Al Hassan Ghazi Ibrahim Shaker'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.


Al Hassan Ghazi Ibrahim Shaker's ROIC % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Al Hassan Ghazi Ibrahim Shaker's ROIC % distribution charts can be found below:

* The bar in red indicates where Al Hassan Ghazi Ibrahim Shaker's ROIC % falls into.



Al Hassan Ghazi Ibrahim Shaker ROIC % Calculation

Al Hassan Ghazi Ibrahim Shaker'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 )
=88.4 * ( 1 - 11.53% )/( (1313.155 + 1228.525)/ 2 )
=78.20748/1270.84
=6.15 %

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))
=1615.965 - 271.809 - ( 72.711 - max(0, 906.559 - 937.56+72.711))
=1313.155

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))
=1508.825 - 261.457 - ( 18.843 - max(0, 755.437 - 837.154+18.843))
=1228.525

Al Hassan Ghazi Ibrahim Shaker'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 )
=139.38 * ( 1 - 4.44% )/( (1228.525 + 1149.529)/ 2 )
=133.191528/1189.027
=11.20 %

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))
=1508.825 - 261.457 - ( 18.843 - max(0, 755.437 - 837.154+18.843))
=1228.525

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))
=1675.18 - 483.683 - ( 41.968 - max(0, 889.34 - 992.078+41.968))
=1149.529

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


Al Hassan Ghazi Ibrahim Shaker  (SAU:1214) 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, Al Hassan Ghazi Ibrahim Shaker's WACC % is 7.87%. Al Hassan Ghazi Ibrahim Shaker's ROIC % is 6.89% (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.


Al Hassan Ghazi Ibrahim Shaker ROIC % Related Terms

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Al Hassan Ghazi Ibrahim Shaker (SAU:1214) Business Description

Traded in Other Exchanges
N/A
Address
King Fahad Road, Near the Raval Tower, P.O.Box 5124, Shaker Group Building, Alsahafa District, Riyadh, SAU, 11422
Al Hassan Ghazi Ibrahim Shaker is engaged in the trading and wholesale parts, electronic equipment, household equipment and air-conditioners, and maintenance. It also provides agency services for companies in the same business. The company trades for the brands like LG, maytag, Ariston, Indesit, Midea, and Kitchen aid.

Al Hassan Ghazi Ibrahim Shaker (SAU:1214) Headlines

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