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Luka Koper d.d (XLJU:LKPG) ROIC % : 5.47% (As of Dec. 2023)


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What is Luka Koper d.d 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 %. Luka Koper d.d's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 5.47%.

As of today (2024-05-08), Luka Koper d.d's WACC % is 7.96%. Luka Koper d.d's ROIC % is 8.35% (calculated using TTM income statement data). Luka Koper d.d 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.


Luka Koper d.d ROIC % Historical Data

The historical data trend for Luka Koper d.d'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.

Luka Koper d.d ROIC % Chart

Luka Koper d.d 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 7.56 5.47 4.86 12.20 8.60

Luka Koper d.d 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 10.06 10.86 9.08 7.74 5.47

Competitive Comparison of Luka Koper d.d's ROIC %

For the Marine Shipping subindustry, Luka Koper d.d'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.


Luka Koper d.d's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Luka Koper d.d's ROIC % distribution charts can be found below:

* The bar in red indicates where Luka Koper d.d's ROIC % falls into.



Luka Koper d.d ROIC % Calculation

Luka Koper d.d'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 )
=60.691 * ( 1 - 16.22% )/( (571.724 + 611.375)/ 2 )
=50.8469198/591.5495
=8.60 %

where

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))
=774.227 - 41.748 - ( 121.104 - max(0, 75.333 - 214.976+121.104))
=611.375

Luka Koper d.d'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 )
=38.184 * ( 1 - 13.75% )/( (593.603 + 611.375)/ 2 )
=32.9337/602.489
=5.47 %

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))
=776.97 - 53.574 - ( 131.307 - max(0, 90.042 - 219.835+131.307))
=593.603

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))
=774.227 - 41.748 - ( 121.104 - max(0, 75.333 - 214.976+121.104))
=611.375

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.


Luka Koper d.d  (XLJU:LKPG) 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, Luka Koper d.d's WACC % is 7.96%. Luka Koper d.d's ROIC % is 8.35% (calculated using TTM income statement data). Luka Koper d.d 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. Luka Koper d.d 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.


Luka Koper d.d ROIC % Related Terms

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Luka Koper d.d (XLJU:LKPG) Business Description

Traded in Other Exchanges
N/A
Address
Vojkovo Nabrezje 38, Capodistria, Koper, SVN, 6000
Luka Koper d.d is engaged in the provision of port and logistics services in the Port of Koper. It provides basic port services such as transshipment and warehousing of goods, goods-related services, managing the port area, logistics services, services related to maritime activity, and maintenance of the port area. The other activities carried out by the company are hospitality services, quality control activity, and rear logistics activity. The basic port activities of throughput and warehousing are carried out at specialized port terminals which comprise a general cargo terminal, timber terminal, container terminal, dry bulk terminal, alumina terminal, and others.

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