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PT XL Axiata Tbk ROIC

What is the ROIC of PT XL Axiata Tbk?

The ROIC of PT XL Axiata Tbk is 3.83%

What is the definition of ROIC?



Return on invested capital (ROIC) is a financial ratio that measures how efficient a company is at allocating the capital under its control to profitable investments.

= NOPAT / Invested capital = EBIT * (1 - tax rate) / (2-year average liabilities + 2-year average shareholder equity)

Return on invested capital (ROIC) ratio gives investors a sense of how well a company is using money under its control to generate profitable returns.

ROIC can be used as a benchmark to calculate the valuation of companies across industries. A higher ROIC means the company is doing a better job of investing the money from shareholders and bondholders to run the business. A company is creating value if its ROIC exceeds 2%. If its ROIC is under 2%, the company is likely destroying value and has no excess capital to invest in future growth.

You can calculate ROIC with the following formula:


NOPAT = Net operating profit after tax
Invested Capital = Average total liabilities + Average shareholders' equity

The averages of liabilities and shareholders' equity are calculated as geometrical averages of the last two annual values from the company's balance sheet.

ROIC of companies in the Communication Services sector on OTC compared to PT XL Axiata Tbk

What does PT XL Axiata Tbk do?

PT XL Axiata Tbk provides telecommunication, telecommunications network, and multimedia services for consumers and businesses in Indonesia. The company offers cellular mobile and closed fixed network, Internet service provider, voice over Internet protocol, content provider, money remitter service, e-money issuance services, and Internet interconnection services. It also provides leased line, VPN MPLS, corporate Internet, and voice over Internet protocol services; mobile data and home broadband services; data center and cloud services; mobile communication services; and mobile advertising and big data services, such as messaging services, display services, and digital rewards, as well as Internet of Things based solutions. The company was formerly known as PT Excelcomindo Pratama Tbk. and changed its name to PT XL Axiata Tbk in 2009. The company was founded in 1989 and is headquartered in Jakarta Selatan, Indonesia. PT XL Axiata Tbk is a subsidiary of Axiata Investments (Indonesia) Sdn. Bhd.

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