Diamond S Shipping Group (Diamond S Shipping Group) ROIC % : 3.67% (As of Mar. 2013)

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What is Diamond S Shipping Group 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 %. Diamond S Shipping Group's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2013 was 3.67%.

As of today (2024-04-28), Diamond S Shipping Group's WACC % is 0.00%. Diamond S Shipping Group's ROIC % is 0.00% (calculated using TTM income statement data). Diamond S Shipping Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Diamond S Shipping Group ROIC % Historical Data

The historical data trend for Diamond S Shipping Group'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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Diamond S Shipping Group ROIC % Chart

Diamond S Shipping Group Annual Data

Trend

Mar12

Mar13

ROIC %

0.67

3.67

Diamond S Shipping Group Semi-Annual Data
	Mar12	Mar13
ROIC %	0.67	3.67

Competitive Comparison of Diamond S Shipping Group's ROIC %

For the Marine Shipping subindustry, Diamond S Shipping Group'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.

Diamond S Shipping Group's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Diamond S Shipping Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Diamond S Shipping Group's ROIC % falls into.

Diamond S Shipping Group ROIC % Calculation

Diamond S Shipping Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2013 is calculated as:

	ROIC % (A: Mar. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2012 )	+	Invested Capital (A: Mar. 2013 ))	/ count )
=	44.381 * ( 1 - 0% )	/	( (1236.018	+	1184.364)	/ 2 )
=	44.381	/	1210.191
=	3.67 %

where

	Invested Capital		(A: Mar. 2012 )
=	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	))
=	1225.534	-	10.965	-	( 49.514	-	max(0, 81.354	-	59.905	+	49.514	))
=	1236.018

	Invested Capital		(A: Mar. 2013 )
=	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	))
=	1168.143	-	13.685	-	( 38.772	-	max(0, 87.209	-	57.303	+	38.772	))
=	1184.364

Diamond S Shipping Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2013 is calculated as:

	ROIC % (Q: Mar. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2012 )	+	Invested Capital (Q: Mar. 2013 ))	/ count )
=	44.381 * ( 1 - 0% )	/	( (1236.018	+	1184.364)	/ 2 )
=	44.381	/	1210.191
=	3.67 %

where

	Invested Capital		(Q: Mar. 2012 )
=	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	))
=	1225.534	-	10.965	-	( 49.514	-	max(0, 81.354	-	59.905	+	49.514	))
=	1236.018

	Invested Capital		(Q: Mar. 2013 )
=	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	))
=	1168.143	-	13.685	-	( 38.772	-	max(0, 87.209	-	57.303	+	38.772	))
=	1184.364

Note: The Operating Income data used here is one times the annual (Mar. 2013) data.

Diamond S Shipping Group (NYSE:DSG) 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, Diamond S Shipping Group's WACC % is 0.00%. Diamond S Shipping Group's ROIC % is 0.00% (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.

Diamond S Shipping Group ROIC % Related Terms

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Diamond S Shipping Group (Diamond S Shipping Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Diamond S Shipping Group Inc (NYSE:DSG) » Definitions » ROIC %

Comparable Companies

PRGNF TEUFF BSTN TOPS RLOG DRYS ESEA GTMAY PXS GLBS SHIP GNKOQ GSL NAO PANL NAP GASS NM DAC OSG

Traded in Other Exchanges

N/A

Address

Website

http://www.diamondsshipping.com

Diamond S Shipping Group Inc, is incorporated in Marshall Islands on July 31, 2013. The Company provides seaborne transportation of refined petroleum and other products in the international shipping markets. The Company is the owners and operators of medium range, or MR, product tankers. The Company's fleet currently consists of 33 MR product tankers built at Korean and Japanese shipyards. The Company competes on basis of price, vessel location, size, age and condition of the vessel. The Company is subject to various international conventions, national, state and local laws and regulations in the countries in which its vessels may operate or are registered.