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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 %. Ascent Industries Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -36.29%.
As of today (2024-04-25), Ascent Industries Co's WACC % is 6.73%. Ascent Industries Co's ROIC % is -12.14% (calculated using TTM income statement data). Ascent Industries Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Ascent Industries Co'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.
Ascent Industries Co Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
ROIC % | Get a 7-Day Free Trial | -0.71 | -3.79 | 12.04 | 9.78 | -10.77 |
Ascent Industries Co 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 | -9.48 | -7.06 | -5.67 | -2.57 | -36.29 |
For the Steel subindustry, Ascent Industries Co'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.
For the Steel industry and Basic Materials sector, Ascent Industries Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Ascent Industries Co's ROIC % falls into.
Ascent Industries Co'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 ) |
= | -25.186 * ( 1 - 16.86% ) | / | ( (248.49 | + | 140.413) | / 2 ) |
= | -20.9396404 | / | 194.4515 | |||
= | -10.77 % |
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 | )) |
= | 269.043 | - | 19.113 | - | ( 1.44 | - | max(0, 33.478 | - | 170.375 | + | 1.44 | )) |
= | 248.49 |
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 | )) |
= | 163.295 | - | 21.031 | - | ( 1.851 | - | max(0, 24.789 | - | 89.413 | + | 1.851 | )) |
= | 140.413 |
Ascent Industries Co'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 ) |
= | -75.82 * ( 1 - 22.58% ) | / | ( (183.095 | + | 140.413) | / 2 ) |
= | -58.699844 | / | 161.754 | |||
= | -36.29 % |
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 | )) |
= | 215.191 | - | 31.366 | - | ( 0.73 | - | max(0, 36.858 | - | 135.035 | + | 0.73 | )) |
= | 183.095 |
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 | )) |
= | 163.295 | - | 21.031 | - | ( 1.851 | - | max(0, 24.789 | - | 89.413 | + | 1.851 | )) |
= | 140.413 |
Note: The Operating Income data used here is four times the quarterly (Dec. 2023) 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.
Ascent Industries Co (NAS:ACNT) 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, Ascent Industries Co's WACC % is 6.73%. Ascent Industries Co's ROIC % is -12.14% (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.
Thank you for viewing the detailed overview of Ascent Industries Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Zuppo John Robert Iii | other: Exec VP - Synalloy Chemicals | 6095 OLD BRICK STORE RD, GREENSBORO NC 27455 |
William Steckel | officer: Chief Financial Officer | 2972 STENDER WAY, SANTA CLARA CA 95054 |
Benjamin L Rosenzweig | director | 50 OLD IVY ROAD SUITE 230, ATLANTA GA 30342 |
Mazzaferro Aldo John Jr | director | 15 MIDWOOD ROAD, STONY BROOK NY 11790 |
Christopher Gerald Hutter | director | 1400 16TH STREET, SUITE 250, OAK BROOK IL 60523 |
Privet Fund Lp | 10 percent owner, other: See Explanation of Responses | 3280 PEACHTREE ROAD NE, SUITE 2670, Atlanta GA 30305 |
Henry L Guy | director | 89 SUMMIT AVENUE, SECOND FLOOR, SUMMIT NJ 07901 |
Aaron M Tam | officer: Chief Financial Officer | 4510 COX ROAD, SUITE 201, GLEN ALLEN VA 23060 |
John Schauerman | director | 26000 COMMERCENTRE DR., LAKE FOREST CA 92630 |
Tackett Glenn Douglas Jr | officer: Chief Legal Officer | 4510 COX ROAD, SUITE 201, GLEN ALLEN VA 23060 |
David James Kuzy | other: EVP - Synalloy Chemicals | 639 S. MAIN STREET, NAPERVILLE IL 60540 |
Timothy J Lynch | other: Exec VP - Synalloy Metals | 13601 PERDIDO KEY DRIVE, UNIT 12 C, PENSACOLA FL 32507 |
Sarah M Cunningham | officer: VP Corporate Adinistration | 14519 AUGUSTA LANE, ASHLAND X1 23005 |
Maria Haughton Roberson | other: President, ASTI | 129 HONEYCUTT ROAD, TROUTMAN NC 28166 |
Anthony A Callander | director | PO BOX 5627, SPARTANBURG SC 29304 |
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