Clayton Williams Energy (Clayton Williams Energy) ROIC % : -653.43% (As of Dec. 2016)

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What is Clayton Williams Energy 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 %. Clayton Williams Energy's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2016 was -653.43%.

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

Clayton Williams Energy ROIC % Historical Data

The historical data trend for Clayton Williams Energy'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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Clayton Williams Energy ROIC % Chart

Clayton Williams Energy Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROIC %

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3.86

0.63

5.48

-5.59

1.93

Clayton Williams Energy 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															-12.49	-7.92	-8.09	-4.22	-653.43

Competitive Comparison of Clayton Williams Energy's ROIC %

For the Oil & Gas E&P subindustry, Clayton Williams Energy'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.

Clayton Williams Energy's ROIC % Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Clayton Williams Energy's ROIC % falls into.

Clayton Williams Energy ROIC % Calculation

Clayton Williams Energy'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 )
=	22.314 * ( 1 - 9.4% )	/	( (1218.615	+	876.348)	/ 2 )
=	20.216484	/	1047.4815
=	1.93 %

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	))
=	1287.42	-	65.739	-	( 7.78	-	max(0, 65.739	-	68.805	+	7.78	))
=	1218.615

	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	))
=	1494.639	-	93.871	-	( 573.025	-	max(0, 106.766	-	631.186	+	573.025	))
=	876.348

Clayton Williams Energy'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 )
=	421.876 * ( 1 - 1680.98% )	/	( (1165.117	+	876.348)	/ 2 )
=	-6669.7751848	/	1020.7325
=	-653.43 %

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	))
=	1436.952	-	82.659	-	( 223.034	-	max(0, 92.795	-	281.971	+	223.034	))
=	1165.117

	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	))
=	1494.639	-	93.871	-	( 573.025	-	max(0, 106.766	-	631.186	+	573.025	))
=	876.348

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

Clayton Williams Energy (NYSE:CWEI) 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, Clayton Williams Energy's WACC % is 0.00%. Clayton Williams Energy'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.

Clayton Williams Energy ROIC % Related Terms

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Clayton Williams Energy (Clayton Williams Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Clayton Williams Energy Inc (NYSE:CWEI) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.claytonwilliams.com

Clayton Williams Energy Inc is an independent oil and gas company that is engaged in the exploration for and production of oil and natural gas primarily in its core area in Southern Reeves County, Texas. it has holdings in the United States, the Wolfcamp Shale in the Southern Delaware Basin of West Texas.

Executives

Ares Management Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Management Corp	director, 10 percent owner	2000 AVE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Management Holdings L.p.	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FL, LOS ANGELES CA 90067
Ares Partners Holdco Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Management Gp Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Holdings Inc.	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ares Holdco Llc	director, 10 percent owner	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Ronald D. Scott	director	5612 DREXEL COURT, MIDLAND TX 79707
Jordan R Smith	director	500 W TEXAS STE 705, MIDLAND TX 79701
Mel G Riggs	director, 10 percent owner, officer: President and Director	1870 CORDELL COURT, SUITE 210, EL CAJON CA 92020
Jaime R. Casas	officer: SVP & CFO	HERITAGE PLAZA, 1111 BAGBY STREET, SUITE 4600, HOUSTON TX 77002
Noble Energy Inc	10 percent owner	1001 NOBLE ENERGY WAY HOUSTON TX 77070
Nathan Walton	director	2000 AVENUE OF THE STARS, 12TH FLOOR, LOS ANGELES CA 90067
Robert L Parker	director	2021 SOUTH LEWIS, STE 600 TULSA OK 74104

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