Progressive Waste Solutions (TSX:BIN) ROIC % : 0.94% (As of Mar. 2016)

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What is Progressive Waste Solutions 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 %. Progressive Waste Solutions's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2016 was 0.94%.

As of today (2024-05-23), Progressive Waste Solutions's WACC % is 0.00%. Progressive Waste Solutions's ROIC % is 0.00% (calculated using TTM income statement data). Progressive Waste Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Progressive Waste Solutions ROIC % Historical Data

The historical data trend for Progressive Waste Solutions'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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Progressive Waste Solutions ROIC % Chart

Progressive Waste Solutions Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROIC %

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-3.96

4.52

5.09

6.32

6.23

Progressive Waste Solutions Quarterly Data
	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16
ROIC %	Get a 7-Day Free Trial															5.26	5.60	6.60	6.57	0.94

Competitive Comparison of Progressive Waste Solutions's ROIC %

For the Waste Management subindustry, Progressive Waste Solutions'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.

Progressive Waste Solutions's ROIC % Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Progressive Waste Solutions's ROIC % distribution charts can be found below:

* The bar in red indicates where Progressive Waste Solutions's ROIC % falls into.

Progressive Waste Solutions ROIC % Calculation

Progressive Waste Solutions's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROIC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	305.41 * ( 1 - 21% )	/	( (3607.929	+	4133.94)	/ 2 )
=	241.2739	/	3870.9345
=	6.23 %

where

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	3893.706	-	325.901	-	( 48.015	-	max(0, 381.056	-	340.932	+	48.015	))
=	3607.929

	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	))
=	4449.744	-	349.959	-	( 49.065	-	max(0, 411.592	-	377.437	+	49.065	))
=	4133.94

Progressive Waste Solutions's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2016 is calculated as:

	ROIC % (Q: Mar. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2015 )	+	Invested Capital (Q: Mar. 2016 ))	/ count )
=	113.944 * ( 1 - 66.11% )	/	( (4133.94	+	4061.423)	/ 2 )
=	38.6156216	/	4097.6815
=	0.94 %

where

	Invested Capital		(Q: 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	))
=	4449.744	-	349.959	-	( 49.065	-	max(0, 411.592	-	377.437	+	49.065	))
=	4133.94

	Invested Capital		(Q: Mar. 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	))
=	4374.998	-	352.659	-	( 58.087	-	max(0, 417.993	-	378.909	+	58.087	))
=	4061.423

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

Progressive Waste Solutions (TSX:BIN) 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, Progressive Waste Solutions's WACC % is 0.00%. Progressive Waste Solutions'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.

Progressive Waste Solutions ROIC % Related Terms

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Progressive Waste Solutions (TSX:BIN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Progressive Waste Solutions Ltd (TSX:BIN) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.progressivewaste.com

Progressive Waste Solutions Ltd was incorporated on May 20, 2009 under the provisions of the Business Corporations Act (Ontario). The Company provides vertically integrated non-hazardous solid waste services to commercial, industrial, municipal and residential customers in Canada and the U.S. The Company carries on business through three geographic segments: Canada, the U.S. South and the U.S. Northeast. The business segments are vertically integrated and their operations include the collection and disposal of waste and recyclable materials, transfer station operations, material recovery facilities, landfills and landfill gas to energy facilities.

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