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Walker Greenbank ROIC %

: 7.82% (As of Jan. 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 %. Walker Greenbank's annualized return on invested capital (ROIC %) for the quarter that ended in Jan. 2020 was 7.82%.

As of today (2020-10-01), Walker Greenbank's WACC % is 9.51%. Walker Greenbank's ROIC % is 7.07% (calculated using TTM income statement data). Walker Greenbank earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Walker Greenbank ROIC % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Walker Greenbank Annual Data
Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
ROIC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.90 8.97 11.39 8.22 7.11

Walker Greenbank Semi-Annual Data
Jul10 Jan11 Jul11 Jan12 Jul12 Jan13 Jul13 Jan14 Jul14 Jan15 Jul15 Jan16 Jul16 Jan17 Jul17 Jan18 Jul18 Jan19 Jul19 Jan20
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 12.25 6.92 9.91 7.88 7.82

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.


Walker Greenbank ROIC % Distribution

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



Walker Greenbank ROIC % Calculation

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

ROIC % (A: Jan. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jan. 2019 ) + Invested Capital (A: Jan. 2020 ))/ count )
=8.840522875817 * ( 1 - 14.96% )/( (100.29290322581 + 111.03660130719)/ 2 )
=7.5179806535948/105.6647522665
=7.11 %

where

Invested Capital(A: Jan. 2019 )
=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))
=123.01290322581 - 19.603870967742 - ( 3.1161290322581 - max(0, 30.735483870968 - 63.602580645161+3.1161290322581))
=100.29290322581

Invested Capital(A: Jan. 2020 )
=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))
=136.42091503268 - 21.390849673203 - ( 3.9934640522876 - max(0, 35.907189542484 - 68.044444444444+3.9934640522876))
=111.03660130719

Walker Greenbank's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jan. 2020 is calculated as:

ROIC % (Q: Jan. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2019 ) + Invested Capital (Q: Jan. 2020 ))/ count )
=6.5098039215686 * ( 1 - -27.46% )/( (101.20423412204 + 111.03660130719)/ 2 )
=8.2973960784314/106.12041771462
=7.82 %

where

Invested Capital(Q: Jul. 2019 )
=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))
=132.13823163138 - 27.870485678705 - ( 3.0635118306351 - max(0, 33.0099626401 - 65.185554171856+3.0635118306351))
=101.20423412204

Invested Capital(Q: Jan. 2020 )
=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))
=136.42091503268 - 21.390849673203 - ( 3.9934640522876 - max(0, 35.907189542484 - 68.044444444444+3.9934640522876))
=111.03660130719

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

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Walker Greenbank  (GREY:WKGBF) 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, Walker Greenbank's WACC % is 9.51%. Walker Greenbank's ROIC % is 7.07% (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.


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