Harvest Natural Resources (Harvest Natural Resources) ROIC % : -63.41% (As of Dec. 2016)

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What is Harvest Natural Resources 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 %. Harvest Natural Resources's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2016 was -63.41%.

As of today (2024-04-26), Harvest Natural Resources's WACC % is 0.00%. Harvest Natural Resources's ROIC % is 0.00% (calculated using TTM income statement data). Harvest Natural Resources earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Harvest Natural Resources ROIC % Historical Data

The historical data trend for Harvest Natural Resources'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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Harvest Natural Resources ROIC % Chart

Harvest Natural Resources Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROIC %

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-8.16

-14.58

-80.61

-19.90

-54.90

Harvest Natural Resources Quarterly Data
	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16
ROIC %	Get a 7-Day Free Trial															-34.21	-121.89	-52.86	-56.85	-63.41

Competitive Comparison of Harvest Natural Resources's ROIC %

For the Oil & Gas E&P subindustry, Harvest Natural Resources'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.

Harvest Natural Resources's ROIC % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Harvest Natural Resources's ROIC % distribution charts can be found below:

* The bar in red indicates where Harvest Natural Resources's ROIC % falls into.

Harvest Natural Resources ROIC % Calculation

Harvest Natural Resources's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2016 is calculated as:

	ROIC % (A: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2015 )	+	Invested Capital (A: Dec. 2016 ))	/ count )
=	-21.273 * ( 1 - -0.45% )	/	( (41.92	+	35.923)	/ 2 )
=	-21.3687285	/	38.9215
=	-54.90 %

where

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	47.781	-	3.356	-	( 2.505	-	max(0, 10.533	-	16.218	+	2.505	))
=	41.92

	Invested Capital		(A: Dec. 2016 )
=	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	))
=	107.097	-	7.798	-	( 63.376	-	max(0, 7.798	-	76.406	+	63.376	))
=	35.923

Harvest Natural Resources's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2016 is calculated as:

	ROIC % (Q: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2016 )	+	Invested Capital (Q: Dec. 2016 ))	/ count )
=	-22.1 * ( 1 - -3.07% )	/	( (0	+	35.923)	/ 1 )
=	-22.77847	/	35.923
=	-63.41 %

where

	Invested Capital		(Q: Sep. 2016 )
=	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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	Invested Capital		(Q: Dec. 2016 )
=	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	))
=	107.097	-	7.798	-	( 63.376	-	max(0, 7.798	-	76.406	+	63.376	))
=	35.923

Note: The Operating Income data used here is four times the quarterly (Dec. 2016) data.

Harvest Natural Resources (NYSE:HNR) 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, Harvest Natural Resources's WACC % is 0.00%. Harvest Natural Resources'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.

Harvest Natural Resources ROIC % Related Terms

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Harvest Natural Resources (Harvest Natural Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Harvest Natural Resources Inc (NYSE:HNR) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.harvestnr.com

Harvest Natural Resources Inc is an independent energy company engaged in the acquisition, exploration, development, production and disposition of oil and natural gas properties. The Company's also acquires, explores, develops and produces properties in geological basins with active hydrocarbon systems. The Company hold exploration and exploitation acreage offshore of the Republic of Gabon through the Dussafu Marin Permit.

Executives

Patrick M Murray	director	1177 ENCLAVE PARKWAY, SUITE 300, HOUSTON TX 77077
Caisse De Depot Et Placement Du Quebec	10 percent owner	1000 PLACE JEAN-PAUL RIOPELLE, MONTREAL A8 H2Z2B3
John U Clarke	director	PENN VIRGINIA CORPORATION, FOUR RADNOR CORPORATE CENTER, STE 200, RADNOR PA 19087
Byron A Dunn	officer: Senior Vice President	C/O HARVEST NATURAL RESOURCES, INC., 1177 ENCLAVE PARKWAY, SUITE 300, HOUSTON TX 77077
Steven W Tholen	officer: Chief Financial Officer	1177 ENCLAVE PARKWAY, SUITE 300, HOUSTON TX 77077
Peter J Hill	other: Retired CEO & Director	1150 DIMOCK LANE, NAPLES FL 34110