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Gazprom PJSC (Gazprom PJSC) ROC % : 3.21% (As of Jun. 2023)


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What is Gazprom PJSC 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 %. Gazprom PJSC's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was 3.21%.

As of today (2024-04-25), Gazprom PJSC's WACC % is 13.04%. Gazprom PJSC's ROC % is 0.93% (calculated using TTM income statement data). Gazprom PJSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Gazprom PJSC ROC % Historical Data

The historical data trend for Gazprom PJSC'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.

* Premium members only.

Gazprom PJSC ROC % Chart

Gazprom PJSC Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.18 6.12 3.12 11.13 9.88

Gazprom PJSC Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Jun22 Dec22 Jun23
ROC % 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 10.50 16.72 10.33 - 3.21

Gazprom PJSC ROC % Calculation

Gazprom PJSC's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=56047.058 * ( 1 - 40.12% )/( (303776.744 + 375864.291)/ 2 )
=33560.9783304/339820.5175
=9.88 %

where

Invested Capital(A: Dec. 2021 )
=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))
=365824.45 - 32408.995 - ( 30309.3 - max(0, 54411.917 - 84050.628+30309.3))
=303776.744

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))
=426943.277 - 31338.807 - ( 19740.179 - max(0, 47399.672 - 75492.107+19740.179))
=375864.291

Gazprom PJSC's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

ROC % (Q: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2022 ) + Invested Capital (Q: Jun. 2023 ))/ count )
=13617.912 * ( 1 - 19.76% )/( (375864.291 + 303947.694)/ 2 )
=10927.0125888/339905.9925
=3.21 %

where

Invested Capital(Q: 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))
=426943.277 - 31338.807 - ( 19740.179 - max(0, 47399.672 - 75492.107+19740.179))
=375864.291

Invested Capital(Q: Jun. 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))
=338860.028 - 26270.482 - ( 8641.852 - max(0, 38788.466 - 50940.23+8641.852))
=303947.694

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


Gazprom PJSC  (OTCPK:OGZPY) 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, Gazprom PJSC's WACC % is 13.04%. Gazprom PJSC's ROC % is 0.93% (calculated using TTM income statement data). Gazprom PJSC 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.


Gazprom PJSC ROC % Related Terms

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Gazprom PJSC (Gazprom PJSC) Business Description

Traded in Other Exchanges
Address
St. Petersburg, 2/3 Lakhtinsky Avenue, Building No. 1, Moscow, RUS, 197229
Gazprom PJSC is a Russian-based integrated oil and gas company in which the Russian government is a majority shareholder. Much of the business lies within the production, transportation, and distribution of natural gas. The company is a major gas supplier to European countries, with substantial gas pipelines throughout Western Russia and into Europe. While its oil segment is a smaller portion of revenue, the company is still integrated into the production, processing, and refinement of crude oil and refined products. Across both segments, the company produces its oil and gas from fields distributed across Russia, with end markets consisting mostly of Europe and Russia.

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