Companhia Siderurgica Nacional (Companhia Siderurgica Nacional) ROC % : 1.89% (As of Sep. 2023)

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What is Companhia Siderurgica Nacional 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 %. Companhia Siderurgica Nacional's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was 1.89%.

As of today (2024-04-29), Companhia Siderurgica Nacional's WACC % is 11.68%. Companhia Siderurgica Nacional's ROC % is 10.68% (calculated using TTM income statement data). Companhia Siderurgica Nacional earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Companhia Siderurgica Nacional ROC % Historical Data

The historical data trend for Companhia Siderurgica Nacional'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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Companhia Siderurgica Nacional ROC % Chart

Companhia Siderurgica Nacional Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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9.52

15.22

12.87

26.26

8.26

Companhia Siderurgica Nacional Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROC %	Get a 7-Day Free Trial															2.98	297.94	16.73	-42.96	1.89

Companhia Siderurgica Nacional ROC % Calculation

Companhia Siderurgica Nacional'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 )
=	1665.186 * ( 1 - 47.47% )	/	( (9312.289	+	11863.997)	/ 2 )
=	874.7222058	/	10588.143
=	8.26 %

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	))
=	14037.225	-	2880.387	-	( 3413.542	-	max(0, 4339.885	-	6184.434	+	3413.542	))
=	9312.289

	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	))
=	16272.231	-	2856.924	-	( 2565.569	-	max(0, 4284.729	-	5836.039	+	2565.569	))
=	11863.997

Companhia Siderurgica Nacional's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	1161.468 * ( 1 - 78.59% )	/	( (13033.583	+	13254.666)	/ 2 )
=	248.6702988	/	13144.1245
=	1.89 %

where

	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	))
=	17278.855	-	2237.479	-	( 2717.19	-	max(0, 3819.316	-	5827.109	+	2717.19	))
=	13033.583

	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	))
=	17901.402	-	2413.74	-	( 3331.912	-	max(0, 4188.225	-	6421.221	+	3331.912	))
=	13254.666

Note: The Operating Income data used here is four times the quarterly (Sep. 2023) data.

Companhia Siderurgica Nacional (NYSE:SID) 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, Companhia Siderurgica Nacional's WACC % is 11.68%. Companhia Siderurgica Nacional's ROC % is 10.68% (calculated using TTM income statement data). Companhia Siderurgica Nacional 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.

Companhia Siderurgica Nacional ROC % Related Terms

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Companhia Siderurgica Nacional (Companhia Siderurgica Nacional) Business Description

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CQWA:Germany CSNA3:Brazil SID:Argentina

Address

Avenue Brigadeiro Faria Lima, 3400, 20th Floor, Sao Paulo, SP, BRA, 04538-132

Website

https://www.csn.com.br

Companhia Siderurgica Nacional is an integrated steel producer. The company operate throughout the entire steel production chain, from the mining of iron ore to the production and sale of a diversified range of steel products. It operates in five segments namely, Steel, Mining, Logistics, Energy, and Cement. It generates maximum revenue from the steel segment. Geographically, it derives a majority of revenue from Asia.