Swift Transportation Co (Swift Transportation Co) ROC % : 6.02% (As of Jun. 2017)

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What is Swift Transportation Co ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Swift Transportation Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2017 was 6.02%.

As of today (2024-05-06), Swift Transportation Co's WACC % is 0.00%. Swift Transportation Co's ROC % is 0.00% (calculated using TTM income statement data). Swift Transportation Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Swift Transportation Co ROC % Historical Data

The historical data trend for Swift Transportation Co's ROC % 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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Swift Transportation Co ROC % Chart

Swift Transportation Co Annual Data

Trend

Dec05

Dec06

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROC %

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10.36

8.96

9.82

9.40

7.01

Swift Transportation Co Quarterly Data
	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17
ROC %	Get a 7-Day Free Trial															8.28	4.83	9.44	1.91	6.02

Swift Transportation Co ROC % Calculation

Swift Transportation Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2016 is calculated as:

	ROC % (A: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2015 )	+	Invested Capital (A: Dec. 2016 ))	/ count )
=	242.012 * ( 1 - 30.56% )	/	( (2487.033	+	2307.028)	/ 2 )
=	168.0531328	/	2397.0305
=	7.01 %

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	))
=	2919.667	-	301.829	-	( 130.805	-	max(0, 398.877	-	705.607	+	130.805	))
=	2487.033

	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	))
=	2745.666	-	326.53	-	( 112.108	-	max(0, 409.573	-	655.551	+	112.108	))
=	2307.028

Swift Transportation Co's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2017 is calculated as:

	ROC % (Q: Jun. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2017 )	+	Invested Capital (Q: Jun. 2017 ))	/ count )
=	208.644 * ( 1 - 37.27% )	/	( (2189.206	+	2162.368)	/ 2 )
=	130.8823812	/	2175.787
=	6.02 %

where

	Invested Capital		(Q: Mar. 2017 )
=	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	))
=	2637.206	-	363.371	-	( 84.629	-	max(0, 429.377	-	615.307	+	84.629	))
=	2189.206

	Invested Capital		(Q: Jun. 2017 )
=	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	))
=	2590.688	-	363.411	-	( 64.909	-	max(0, 412.024	-	598.326	+	64.909	))
=	2162.368

Note: The Operating Income data used here is four times the quarterly (Jun. 2017) data.

Swift Transportation Co (NYSE:SWFT) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Swift Transportation Co's WACC % is 0.00%. Swift Transportation Co's ROC % is 0.00% (calculated using TTM income statement data). Swift Transportation Co 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 %, ROC % 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.

Swift Transportation Co ROC % Related Terms

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Swift Transportation Co (Swift Transportation Co) Business Description

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Address

Website

http://www.swifttrans.com

Swift Transportation is the largest full-truckload carrier (74% of revenue) in the United States, with an effective fleet of more than 19,000 tractors across all its divisions, when including owner-operators. Following its acquisition of Central Refrigerated in 2013, it ranks among the top 10 temperature-controlled providers (8%). Swift also offers intermodal (9%), which competes with the likes of J.B. Hunt. In December 2010, Swift came public for a second time; founder Jerry Moyes had taken it private in 2007.

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