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REX American Resources (REX American Resources) ROIC %

: 29.83% (As of Jan. 2024)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. REX American Resources's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2024 was 29.83%.

As of today (2024-04-24), REX American Resources's WACC % is 9.53%. REX American Resources's ROIC % is 20.66% (calculated using TTM income statement data). REX American Resources 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.


REX American Resources ROIC % Historical Data

The historical data trend for REX American 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.

* Premium members only.

REX American Resources Annual Data
Trend Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.44 0.79 19.69 8.22 22.24

REX American Resources Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.29 5.17 10.79 36.47 29.83

Competitive Comparison

For the Chemicals subindustry, REX American 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.


REX American Resources ROIC % Distribution

For the Chemicals industry and Basic Materials sector, REX American Resources's ROIC % distribution charts can be found below:

* The bar in red indicates where REX American Resources's ROIC % falls into.



REX American Resources ROIC % Calculation

REX American Resources's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jan. 2024 is calculated as:

ROIC % (A: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jan. 2023 ) + Invested Capital (A: Jan. 2024 ))/ count )
=68.839 * ( 1 - 22.91% )/( (250.791 + 226.528)/ 2 )
=53.0679851/238.6595
=22.24 %

where

Invested Capital(A: Jan. 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))
=579.579 - 47.845 - ( 280.943 - max(0, 54.599 - 372.644+280.943))
=250.791

Invested Capital(A: Jan. 2024 )
=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))
=664.802 - 59.617 - ( 378.657 - max(0, 66.259 - 452.103+378.657))
=226.528

REX American Resources's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jan. 2024 is calculated as:

ROIC % (Q: Jan. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 ))/ count )
=92.108 * ( 1 - 22.07% )/( (254.671 + 226.528)/ 2 )
=71.7797644/240.5995
=29.83 %

where

Invested Capital(Q: Jan. 2024 )
=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))
=664.802 - 59.617 - ( 378.657 - max(0, 66.259 - 452.103+378.657))
=226.528

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

* 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.


REX American Resources  (NYSE:REX) 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, REX American Resources's WACC % is 9.53%. REX American Resources's ROIC % is 20.66% (calculated using TTM income statement data). REX American Resources 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. REX American Resources 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.


REX American Resources ROIC % Related Terms

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REX American Resources (REX American Resources) Business Description

Traded in Other Exchanges
Address
7720 Paragon Road, Dayton, OH, USA, 45459
REX American Resources Corp operates as a holding company, which engages in investment in alternative energy and ethanol production entities. Its operating segments include Ethanol and By-Products. Its products include dried distillers grains, modified distillers grains, and non-food grade corn oil.
Executives
Douglas Bruggeman officer: CFO, VP-Finance, Treasurer 7720 PARAGON ROAD, DAYTON OH 45459
Cheryl Lea Bustos director 43 SUGARCREEK TRAIL, GALENA IL 61036
Stuart A Rose director, 10 percent owner, officer: COB; CEO 7720 PARAGON ROAD, DAYTON OH 45459
Mervyn L Alphonso director 7720 PARAGON ROAD, DAYTON OH 45459
Anne Macmillan director 7720 PARAGON ROAD, DAYTON OH 45459
Lawrence Tomchin director 7720 PARAGON ROAD, DAYTON OH 45459
Zafar A Rizvi officer: VP Loss Prevention 7720 PARAGON ROAD, DAYTON OH 45459
Edward M Kress director, officer: Secretary 6505 LANDSEND COURT, DAYTON OH 45414
J. Dennis Hastert director 20 S. WACKER DRIVE, CHICAGO IL 60606
David Fuchs officer: VP Mgmt Information Systems 1366 HOLLOWCREEK DRIVE, MIAMISBURG OH 45342
Keith B Magby officer: VP Operations 1947 FOUNTAINVIEW DRIVE, DAYTON OH 45414
David L Bearden officer: President;COO 1517 WOODS DRIVE - UNIT 209, ARLINGTON HEIGHTS IL 60004
Philip J Kellar officer: VP Store Operations P O BOX 6592, KINGSPORT TN 37663
Lee Fisher director 3605 WARRENSVILLE CENTER ROAD, SHAKER HEIGHTS OH 44122
David Harris director 237 PARK AVENUE - SUITE 900, NEW YORK NY 10017

REX American Resources (REX American Resources) Headlines