MV Oil Trust (MV Oil Trust) ROIC % : 397.59% (As of Dec. 2023)

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What is MV Oil Trust 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 %. MV Oil Trust's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 397.59%.

As of today (2024-04-28), MV Oil Trust's WACC % is 4.48%. MV Oil Trust's ROIC % is 334.68% (calculated using TTM income statement data). MV Oil Trust generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

MV Oil Trust ROIC % Historical Data

The historical data trend for MV Oil Trust'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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MV Oil Trust ROIC % Chart

MV Oil Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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90.33

50.39

128.07

379.35

334.46

MV Oil Trust Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															519.27	334.66	303.94	310.79	397.59

Competitive Comparison of MV Oil Trust's ROIC %

For the Oil & Gas E&P subindustry, MV Oil Trust'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.

MV Oil Trust's ROIC % Distribution in the Oil & Gas Industry

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

* The bar in red indicates where MV Oil Trust's ROIC % falls into.

MV Oil Trust ROIC % Calculation

MV Oil Trust's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	16.79 * ( 1 - 0% )	/	( (5.848	+	4.192)	/ 2 )
=	16.79	/	5.02
=	334.46 %

where

	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	))
=	6.884	-	0	-	( 1.036	-	max(0, 0	-	1.036	+	1.036	))
=	5.848

	Invested Capital		(A: Dec. 2023 )
=	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	))
=	5.456	-	0	-	( 1.264	-	max(0, 0	-	1.264	+	1.264	))
=	4.192

MV Oil Trust's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	17.48 * ( 1 - 0% )	/	( (4.601	+	4.192)	/ 2 )
=	17.48	/	4.3965
=	397.59 %

where

	Invested Capital		(Q: Sep. 2023 )
=	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	))
=	6.014	-	0	-	( 1.413	-	max(0, 0	-	1.413	+	1.413	))
=	4.601

	Invested Capital		(Q: Dec. 2023 )
=	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	))
=	5.456	-	0	-	( 1.264	-	max(0, 0	-	1.264	+	1.264	))
=	4.192

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

MV Oil Trust (NYSE:MVO) 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, MV Oil Trust's WACC % is 4.48%. MV Oil Trust's ROIC % is 334.68% (calculated using TTM income statement data). MV Oil Trust generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. MV Oil Trust 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 %, 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.

MV Oil Trust ROIC % Related Terms

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MV Oil Trust (MV Oil Trust) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » MV Oil Trust (NYSE:MVO) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

601 Travis Street, Floor 16, Houston, TX, USA, 77002

Website

MV Oil Trust is a statutory trust. Its underlying properties consist of MV Partners, LLC's (MV Partners) net interests in all of its oil and natural gas properties, which are located in the Mid-Continent region in the States of Kansas and Colorado. These oil and gas properties include producing oil and gas wells.

Executives

Vap I Llc	10 percent owner	1700 WATERFRONT PARKWAY, BUILDING 500, WICHITA KS 67206
Mv Energy Llc	10 percent owner	250 N. WATER, SUITE 300, WICHITA KS 67202
Mv Partners Llc	10 percent owner	250 N. WATER, SUITE 300, WICHITA KS 67202