Waccy ideas from Tomkins
Article Abstract:
Return on investment (ROI) is an important measure which should be displayed prominently in corporate reports. The formula used to calculate ROI has not been controlled by the Accounting Standards Board, so companies may calculate it in a number of ways. Tomkins' ROI dropped from 10.5% in 1992 to 6% following the acquisition of Ranks Hovis McDougall. The weighted average cost of capital (WACC) is a measure of a company's minimum return to justify its activities. This was calculated at 10.1% in early 1998. Tomkins' ROI is improving but has not matched its WACC.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Sum of the parts
Article Abstract:
A number of companies are to be created from the Hanson group, and it is not clear which companies will take on debt, nor how much will be taken on. Imperial Tobacco has relatively low capital spending levels and generates cash, so could take on some debt. The new chemicals company would have more problems if it took on debt since it is very sensitive to world prices. Other divisons are energy, and building materials. The Hanson name will be retained by the building materials company.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1996
User Contributions:
Comment about this article or add new information about this topic:
Tomkins: the best thing since sliced bread
Article Abstract:
Tomkins plans to acquire Gates Rubber for 700 million pounds sterling. Greh Hutchings is chairman of Tomkins and was previously acquisitions manager at Hanson. The two companies have had similar strategies, but the acquisition of Gates is different from Hanson's acquisition of Eastern as a move into electric utilities. Tomkins' share price has risen following the announcement of the bid for Gates. Hutchings does not see increased size as creating problems in locating deals.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Safety first. Trading on the past. It could be who?
- Abstracts: Extra cash for premium bonds. Spreading: the word. Still feeling handicapped
- Abstracts: Cheap pipes. Thin metal rolls out thickening profits. Diploma: feeling the pinch
- Abstracts: Launches and charges. Self-select plans. Financial planning
- Abstracts: Japan: back to basics. Japan: waiting on the bail-out