Westshore Terminals Investment (Westshore Terminals Investment) ROC %

: 7.84% (As of Dec. 2023)

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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Westshore Terminals Investment's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 7.84%.

As of today (2024-04-16), Westshore Terminals Investment's WACC % is 7.13%. Westshore Terminals Investment's ROC % is 10.67% (calculated using TTM income statement data). Westshore Terminals Investment generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Westshore Terminals Investment ROC % Historical Data

The historical data trend for Westshore Terminals Investment'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.

Westshore Terminals Investment Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

14.17

13.13

11.12

6.80

10.60

Westshore Terminals Investment Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %																0.99	12.42	10.74	12.01	7.84

Westshore Terminals Investment ROC % Calculation

Westshore Terminals Investment's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	121.008 * ( 1 - 27.03% )	/	( (793.617	+	872.368)	/ 2 )
=	88.2995376	/	832.9925
=	10.60 %

where

	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	))
=	926.609	-	47.038	-	( 114.146	-	max(0, 57.987	-	143.941	+	114.146	))
=	793.617

	Invested Capital		(A: Dec. 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	))
=	1039.534	-	105.092	-	( 122.799	-	max(0, 108.473	-	170.547	+	122.799	))
=	872.368

Westshore Terminals Investment's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	91.804 * ( 1 - 27.06% )	/	( (836.824	+	872.368)	/ 2 )
=	66.9618376	/	854.596
=	7.84 %

where

	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	))
=	999.385	-	79.046	-	( 120.758	-	max(0, 82.425	-	165.94	+	120.758	))
=	836.824

	Invested Capital		(Q: Dec. 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	))
=	1039.534	-	105.092	-	( 122.799	-	max(0, 108.473	-	170.547	+	122.799	))
=	872.368

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

Westshore Terminals Investment (OTCPK:WTSHF) 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, Westshore Terminals Investment's WACC % is 7.13%. Westshore Terminals Investment's ROC % is 10.67% (calculated using TTM income statement data). Westshore Terminals Investment generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Westshore Terminals Investment ROC % Related Terms

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Westshore Terminals Investment (Westshore Terminals Investment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Westshore Terminals Investment Corp (OTCPK:WTSHF) » Definitions » ROC %

Traded in Other Exchanges

WTE:Canada

Address

1067 West Cordova Street, Suite 1800, Vancouver, BC, CAN, V6C 1C7

Website

https://www.westshore.com

Westshore Terminals Investment Corporation is a Canada-based company, which owns the Westshore Terminals Limited Partnership. The company operates a coal storage and loading terminal at Roberts Bank, British Columbia, and revenue is derived from rates charged for loading coal onto seagoing vessels. The company services coal from mines in British Columbia, Alberta, and the northwestern United States. The coal is delivered to the terminal in unit trains and then unloaded and transferred onto a ship. It is then shipped to multiple countries across the world, with the majority headed to Japan, Korea and China.

Westshore Terminals Investment (Westshore Terminals Investment) Headlines

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