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Tupras-Turkiye Petrol Rafineleri AS (Tupras-Turkiye Petrol Rafineleri AS) ROIC % : 125.12% (As of Dec. 2023)


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What is Tupras-Turkiye Petrol Rafineleri AS 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 %. Tupras-Turkiye Petrol Rafineleri AS's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 125.12%.

As of today (2024-05-12), Tupras-Turkiye Petrol Rafineleri AS's WACC % is 11.47%. Tupras-Turkiye Petrol Rafineleri AS's ROIC % is 66.48% (calculated using TTM income statement data). Tupras-Turkiye Petrol Rafineleri AS 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.


Tupras-Turkiye Petrol Rafineleri AS ROIC % Historical Data

The historical data trend for Tupras-Turkiye Petrol Rafineleri AS'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.

Tupras-Turkiye Petrol Rafineleri AS ROIC % Chart

Tupras-Turkiye Petrol Rafineleri AS Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -18.13 -0.19 28.00 65.45 33.69

Tupras-Turkiye Petrol Rafineleri AS Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 167.69 22.85 78.39 103.97 125.12

Competitive Comparison of Tupras-Turkiye Petrol Rafineleri AS's ROIC %

For the Oil & Gas Refining & Marketing subindustry, Tupras-Turkiye Petrol Rafineleri AS'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.


Tupras-Turkiye Petrol Rafineleri AS's ROIC % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Tupras-Turkiye Petrol Rafineleri AS's ROIC % distribution charts can be found below:

* The bar in red indicates where Tupras-Turkiye Petrol Rafineleri AS's ROIC % falls into.



Tupras-Turkiye Petrol Rafineleri AS ROIC % Calculation

Tupras-Turkiye Petrol Rafineleri AS'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 )
=3111.692 * ( 1 - 6.83% )/( (9875.311 + 7334.425)/ 2 )
=2899.1634364/8604.868
=33.69 %

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))
=18636.122 - 5142.595 - ( 4097.803 - max(0, 6967.964 - 10586.18+4097.803))
=9875.311

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))
=12614.072 - 3701.883 - ( 3204.935 - max(0, 5339.785 - 6917.549+3204.935))
=7334.425

Tupras-Turkiye Petrol Rafineleri AS's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=4835.784 * ( 1 - -36.17% )/( (3191.223 + 7334.425)/ 2 )
=6584.8870728/5262.824
=125.12 %

where

Invested Capital(Q: Sep. 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))
=9300.283 - 4479.728 - ( 2895.982 - max(0, 5654.833 - 7284.165+2895.982))
=3191.223

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))
=12614.072 - 3701.883 - ( 3204.935 - max(0, 5339.785 - 6917.549+3204.935))
=7334.425

Note: The Operating Income data used here is four times the quarterly (Dec. 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.


Tupras-Turkiye Petrol Rafineleri AS  (OTCPK:TUPRF) 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, Tupras-Turkiye Petrol Rafineleri AS's WACC % is 11.47%. Tupras-Turkiye Petrol Rafineleri AS's ROIC % is 66.48% (calculated using TTM income statement data). Tupras-Turkiye Petrol Rafineleri AS 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. Tupras-Turkiye Petrol Rafineleri AS 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.


Tupras-Turkiye Petrol Rafineleri AS ROIC % Related Terms

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Tupras-Turkiye Petrol Rafineleri AS (Tupras-Turkiye Petrol Rafineleri AS) Business Description

Traded in Other Exchanges
Address
Guney Mahallesi, Petrol Caddesi No:25, Korfez, Kocaeli, TUR, 41790
Tupras-Turkiye Petrol Rafineleri AS provides and refines crude oil through Turkish and international refineries. It also operates petrochemical factories and facilities. The company's complete line of products includes liquefied petroleum gas(LPG), fuel oil, waxes and extracts, bitumen, and other products. In addition to refining and producing products, the firm engages in the purchase, sell, import, export, store, marketing, and distribution of a variety of petroleum products. Distribution is completed through a network of foreign and domestic wholesalers and retailers. The majority of sales from refineries are domestic.

Tupras-Turkiye Petrol Rafineleri AS (Tupras-Turkiye Petrol Rafineleri AS) Headlines

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