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EQT Holdings ROIC %

: 0.00% (As of Dec. 2020)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. EQT Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2020 was 0.00%.

As of today (2021-04-21), EQT Holdings's WACC % is 6.68%. EQT Holdings's ROIC % is 0.00% (calculated using TTM income statement data). EQT Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


EQT Holdings ROIC % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.

* Premium members only.

EQT Holdings Annual Data
Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20
ROIC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

EQT Holdings Semi-Annual Data
Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20
ROIC % 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 Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.00

Competitive Comparison
* 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.


EQT Holdings ROIC % Distribution

* The bar in red indicates where EQT Holdings's ROIC % falls into.



EQT Holdings ROIC % Calculation

EQT Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2020 is calculated as:

ROIC % (A: Jun. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2019 ) + Invested Capital (A: Jun. 2020 ))/ count )
=0 * ( 1 - 39.01% )/( (238.199 + 249.92)/ 2 )
=0/244.0595
=0.00 %

where

EQT Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2020 is calculated as:

ROIC % (Q: Dec. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2020 ) + Invested Capital (Q: Dec. 2020 ))/ count )
=0 * ( 1 - 28.37% )/( (249.92 + 252.308)/ 2 )
=0/251.114
=0.00 %

where

Note: The Operating Income data used here is two times the semi-annual (Dec. 2020) data.

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.


EQT Holdings  (ASX:EQT) 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, EQT Holdings's WACC % is 6.68%. EQT Holdings'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.


EQT Holdings ROIC % Related Terms


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