Electricite de France (Electricite de France) ROC %

: -6.10% (As of Dec. 2022)

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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Electricite de France's annualized return on capital (ROC %) for the quarter that ended in Dec. 2022 was -6.10%.

As of today (2024-04-18), Electricite de France's WACC % is 0.00%. Electricite de France's ROC % is 0.00% (calculated using TTM income statement data). Electricite de France earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Electricite de France ROC % Historical Data

The historical data trend for Electricite de France's ROC % 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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Electricite de France Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

3.00

1.83

0.54

1.52

-3.66

Electricite de France Semi-Annual Data
	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22
ROC %																0.84	2.72	0.69	-1.17	-6.10

Electricite de France ROC % Calculation

Electricite de France's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-17070.975 * ( 1 - 17.13% )	/	( (376267.797	+	396358.051)	/ 2 )
=	-14146.7169825	/	386312.924
=	-3.66 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	407872.316	-	22611.299	-	( 26361.582	-	max(0, 109761.582	-	118754.802	+	26361.582	))
=	376267.797

	Invested Capital		(A: Dec. 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	))
=	411156.78	-	25689.619	-	( 31151.483	-	max(0, 145740.466	-	134849.576	+	31151.483	))
=	396358.051

Electricite de France's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2022 is calculated as:

	ROC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	-28078.39 * ( 1 - 13.48% )	/	( (400732.558	+	396358.051)	/ 2 )
=	-24293.423028	/	398545.3045
=	-6.10 %

where

	Invested Capital		(Q: 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	))
=	426836.152	-	17769.556	-	( 38746.3	-	max(0, 145087.738	-	153421.776	+	38746.3	))
=	400732.558

	Invested Capital		(Q: Dec. 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	))
=	411156.78	-	25689.619	-	( 31151.483	-	max(0, 145740.466	-	134849.576	+	31151.483	))
=	396358.051

Note: The Operating Income data used here is two times the semi-annual (Dec. 2022) data.

Electricite de France (OTCPK:ECIFY) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Electricite de France's WACC % is 0.00%. Electricite de France's ROC % is 0.00% (calculated using TTM income statement data). Electricite de France 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 %, ROC % 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.

Electricite de France ROC % Related Terms

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Electricite de France (Electricite de France) Business Description

Industry

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Address

22-30, Avenue de Wagram, Paris, FRA, 75382

Website

http://www.edf.com

Electricite de France is one of the world's largest energy companies, controlling the French power grid along with a massive global generation fleet. Its French nuclear fleet comprises 58 plants. It operates the largest power supply business in France, which acts as a broker between generators and retail end users, is a major renewable developer, and holds stakes in other energy businesses globally, including a small but growing Chinese footprint. With the acquisition of Areva's nuclear reactor unit in 2017, EDF became an integrated nuclear developer.

Electricite de France (Electricite de France) ROC %

Electricite de France ROC % Historical Data

Electricite de France ROC % Calculation

Electricite de France ROC % Related Terms

Electricite de France (Electricite de France) Business Description

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