Bioceres Crop Solutions (Bioceres Crop Solutions) ROIC % : 8.80% (As of Mar. 2024)

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What is Bioceres Crop Solutions 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 %. Bioceres Crop Solutions's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 8.80%.

As of today (2024-05-23), Bioceres Crop Solutions's WACC % is 4.78%. Bioceres Crop Solutions's ROIC % is 2.89% (calculated using TTM income statement data). Bioceres Crop Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bioceres Crop Solutions ROIC % Historical Data

The historical data trend for Bioceres Crop Solutions'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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Bioceres Crop Solutions ROIC % Chart

Bioceres Crop Solutions Annual Data

Trend

Jan18

Jan19

Jun20

Jun21

Jun22

Jun23

ROIC %

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-1.64

15.56

-5.78

-3.63

12.04

Bioceres Crop Solutions 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															23.37	2.69	3.22	1.24	8.80

Competitive Comparison of Bioceres Crop Solutions's ROIC %

For the Agricultural Inputs subindustry, Bioceres Crop Solutions'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.

Bioceres Crop Solutions's ROIC % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Bioceres Crop Solutions's ROIC % distribution charts can be found below:

* The bar in red indicates where Bioceres Crop Solutions's ROIC % falls into.

Bioceres Crop Solutions ROIC % Calculation

Bioceres Crop Solutions's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROIC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	54.313 * ( 1 - -5.6% )	/	( (346.221	+	606.69)	/ 2 )
=	57.354528	/	476.4555
=	12.04 %

where

	Invested Capital		(A: Jun. 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	))
=	518.22	-	133.388	-	( 38.611	-	max(0, 222.666	-	297.705	+	38.611	))
=	346.221

	Invested Capital		(A: Jun. 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	))
=	818.059	-	151.317	-	( 60.052	-	max(0, 298.713	-	397.114	+	60.052	))
=	606.69

Bioceres Crop Solutions'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 )
=	49.2 * ( 1 - -11.36% )	/	( (613.213	+	632.6)	/ 2 )
=	54.78912	/	622.9065
=	8.80 %

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	))
=	819.523	-	164.868	-	( 41.442	-	max(0, 316.807	-	391.987	+	41.442	))
=	613.213

	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	))
=	837	-	171.5	-	( 32.9	-	max(0, 335.4	-	408.1	+	32.9	))
=	632.6

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

Bioceres Crop Solutions (NAS:BIOX) 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, Bioceres Crop Solutions's WACC % is 4.78%. Bioceres Crop Solutions's ROIC % is 2.89% (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.

Bioceres Crop Solutions ROIC % Related Terms

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Bioceres Crop Solutions (Bioceres Crop Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Agriculture » Bioceres Crop Solutions Corp (NAS:BIOX) » Definitions » ROIC %

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Traded in Other Exchanges

0G4:Germany 0G4:Germany

Address

Ocampo 210 Bis, Predio CCT, Province of Santa Fe, Rosario, ARG, 2000

Website

https://www.biocerescrops.com

Bioceres Crop Solutions Corp is a fully-integrated provider of crop productivity solutions, including seeds, seed traits, seed treatments, biologicals, high-value adjuvants and fertilizers. The company has developed a multi-discipline and multi-product platform capable of providing solutions throughout the entire crop cycle, from pre-planting to transportation and storage. The business divisions consist of crop protection, seed and integrated products, and crop nutrition. The company derives majority of its revenue from the crop protection division. Its product includes fertilizers, inoculants, adjuvants, crop protection solutions and seeds.