Looks like there`s been an error while trying to load this page.
Our team has been notified but please contact us using the email support widget if the problem persists.
The following section summarizes insights on Oceana Group Limited's Return on Invested Capital:
To view the full list of supported financial metrics please see Complete Metrics Listing.
Metrics similar to Return on Invested Capital in the popular category include:
A capital efficiency ratio used to measure a firm's ability to create value for all its stakeholders, debt, and equity.
Return on Invested Capital or ROIC is defined as:
Net Operating Profit After Tax
(/) Average Invested Capital
Return on Invested Capital
Return on Invested Capital for Oceana is calculated as follows:
Net Operating Profit After Tax [ R1.206 B ]
(/) Average Invested Capital over Period [ R10.948 B ]
(=) Return on Invested Capital [ 11.0% ]
Where Invested Capital is calculated as follows:
(+) Average debt = (R2.676 B + R3.534 B) / 2 = R3.105 B
(+) Average Equity = (R7.969 B + R7.718 B) / 2 = R7.843 B
(=) Invested Capital [ R10.948 B ]
The tables below summarizes the trend in Oceana’s return on assets over the last five years:
| Fiscal Year | Net Operating Profit After Tax | Average Invested Capital | Return on Invested Capital |
|---|---|---|---|
| 2020-09-30 | R1.04 B | R9.242 B | 11.3% |
| 2021-09-30 | R794.8 M | R9.233 B | 8.6% |
| 2022-09-30 | R936.8 M | R9.496 B | 9.9% |
| 2023-09-30 | R1.058 B | R10.437 B | 10.1% |
| 2024-09-30 | R1.206 B | R10.948 B | 11.0% |
Return on Invested Capital is used to evaluate the ability of the company to create value for all its stakeholders, debt and equity. ROIC can be used to benchmark companies within an industry but it is also useful to consider its relationship to the Weighted Average Cost of Capital (WACC).
Since ROIC measures the company’s ability to generate a return on invested capital, and the WACC measures the minimum return required by the company’s capital providers (equity and debt), the difference between ROIC and WACC is referred to as Economic Profit or Excess Return.
Excess Return = Return on Invested Capital - Weighted Average Cost of Capital