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Greenbrier (NYSE:GBX) ROIC %

: 6.41% (As of Nov. 2023)
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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 %. Greenbrier's annualized return on invested capital (ROIC %) for the quarter that ended in Nov. 2023 was 6.41%.

As of today (2024-03-03), Greenbrier's WACC % is 9.01%. Greenbrier's ROIC % is 6.44% (calculated using TTM income statement data). Greenbrier earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Greenbrier ROIC % Historical Data

The historical data trend for Greenbrier'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.

* Premium members only.

Greenbrier Annual Data
Trend Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.24 4.99 -7.04 2.33 5.30

Greenbrier Quarterly Data
Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23
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 1.95 5.87 7.74 6.22 6.41

Competitive Comparison

For the Railroads subindustry, Greenbrier'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.


Greenbrier ROIC % Distribution

For the Transportation industry and Industrials sector, Greenbrier's ROIC % distribution charts can be found below:

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



Greenbrier ROIC % Calculation

Greenbrier's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Aug. 2023 is calculated as:

ROIC % (A: Aug. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Aug. 2022 ) + Invested Capital (A: Aug. 2023 ))/ count )
=205.8 * ( 1 - 27.03% )/( (2639.8 + 3025.4)/ 2 )
=150.17226/2832.6
=5.30 %

where

Greenbrier's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Nov. 2023 is calculated as:

ROIC % (Q: Nov. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Aug. 2023 ) + Invested Capital (Q: Nov. 2023 ))/ count )
=260 * ( 1 - 23.98% )/( (3025.4 + 3138.8)/ 2 )
=197.652/3082.1
=6.41 %

where

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


Greenbrier  (NYSE:GBX) 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, Greenbrier's WACC % is 9.01%. Greenbrier's ROIC % is 6.44% (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.


Greenbrier ROIC % Related Terms

Thank you for viewing the detailed overview of Greenbrier's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Greenbrier (NYSE:GBX) Business Description

Traded in Other Exchanges
Address
One Centerpoint Drive, Suite 200, Lake Oswego, OR, USA, 97035
Greenbrier Companies Inc designs, manufactures, and markets railroad freight car equipment in North America and Europe, marine barges in North America and provides wheel services, railcar refurbishment, and parts, leasing and other services to the railroad. Its segments include Manufacturing, Maintenance Services and Leasing & Management Services. The company generates a majority of its revenue from the manufacturing segment. Geographically, it derives a majority of revenue from the United States.
Executives
Martin Raymond Baker officer: SVP, GC & Compliance Officer ONE CENTERPOINTE DRIVE, SUITE 200, LAKE OSWEGO OR 97035
Patrick J Ottensmeyer director PO BOX 219335, KANSAS CITY MO 64121
Laurie R Dornan officer: SVP, Chief HR Officer ONE CENTERPOINTE DR., SUITE 200, LAKE OSWEGO OR 97035
Charles J Swindells director ONE CENTERPOINTE DR., SUITE 200, LAKE OSWEGO OR 97035
Matthew Joseph Meyer officer: SVP, Finance & CAO 47912 HALYARD ROAD, SUITE 100, PLYMOUTH MI 48170
Ricardo Galvan officer: SVP, GRS ONE CENTERPOINTE DR., SUITE 200, LAKE OSWEGO OR 97035
William A Furman officer: Chairman & CEO ONE CENTERPOINTE DR, SUITE 200, LAKE OSWEGO OR 97035
William J. Krueger officer: President, GMO THE GREENBRIER COMPANIES, INC., ONE CENTERPOINTE DR., #200, LAKE OSWEGO OR 97035
Antonio O Garza director 500 W. ILLINOIS, SUITE 100, MIDLAND TX 79701
Brian J Comstock officer: EVP, Sales and Marketing 19262 S REDLAND ROAD, OREGON CITY OR 97045
Donald A Washburn director 222 SW HARRISON STREET, APT 23C, PORTLAND OR 97201
James R Huffines director C/O PLAINSCAPITAL CORPORATION, 2323 VICTORY AVENUE. SUITE 1400, DALLAS TX 75219
Alejandro Centurion officer: EVP and President, GMO ONE CENTERPOINTE AVE., STE. 200, LAKE OSWEGO OR 97035
Mark J Rittenbaum officer: EVP, Chief Comm & Leasing Off
Duane Charles Mcdougall director C/O INFOCUS CORP, 277008 SW PARKWAY AVE, WILSONVILLE OR 97070