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Atlas Air Worldwide Holdings ROIC %

: 6.83% (As of Jun. 2022)
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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 %. Atlas Air Worldwide Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2022 was 6.83%.

As of today (2022-08-13), Atlas Air Worldwide Holdings's WACC % is 5.20%. Atlas Air Worldwide Holdings's ROIC % is 8.97% (calculated using TTM income statement data). Atlas Air Worldwide Holdings 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.


Atlas Air Worldwide Holdings ROIC % Historical Data

The historical data trend for Atlas Air Worldwide Holdings'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.

Atlas Air Worldwide Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.71 5.16 2.16 6.76 9.51

Atlas Air Worldwide Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 8.67 9.49 13.33 6.08 6.83

Competitive Comparison

For the Airports & Air Services subindustry, Atlas Air Worldwide Holdings'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.

   

Atlas Air Worldwide Holdings ROIC % Distribution

For the Transportation industry and Industrials sector, Atlas Air Worldwide Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Atlas Air Worldwide Holdings's ROIC % falls into.



Atlas Air Worldwide Holdings ROIC % Calculation

Atlas Air Worldwide Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:

ROIC % (A: Dec. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2020 ) + Invested Capital (A: Dec. 2021 ))/ count )
=711.501 * ( 1 - 23.8% )/( (5443.59 + 5958.596)/ 2 )
=542.163762/5701.093
=9.51 %

where

Invested Capital(A: Dec. 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))
=6029.188 - 515.063 - ( 845.589 - max(0, 1147.186 - 1217.721+845.589))
=5443.59

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))
=6443.243 - 578.682 - ( 910.965 - max(0, 1420.057 - 1326.022+910.965))
=5958.596

Atlas Air Worldwide Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2022 is calculated as:

ROIC % (Q: Jun. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2022 ) + Invested Capital (Q: Jun. 2022 ))/ count )
=528.66 * ( 1 - 23.19% )/( (6003.717 + 5879.894)/ 2 )
=406.063746/5941.8055
=6.83 %

where

Invested Capital(Q: Mar. 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))
=6332.805 - 598.482 - ( 730.349 - max(0, 1401.471 - 1132.077+730.349))
=6003.717

Invested Capital(Q: Jun. 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))
=6299.008 - 575.098 - ( 606.567 - max(0, 1149.002 - 993.018+606.567))
=5879.894

Note: The Operating Income data used here is four times the quarterly (Jun. 2022) 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.


Atlas Air Worldwide Holdings  (NAS:AAWW) 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, Atlas Air Worldwide Holdings's WACC % is 5.20%. Atlas Air Worldwide Holdings's ROIC % is 8.97% (calculated using TTM income statement data). Atlas Air Worldwide Holdings 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. Atlas Air Worldwide Holdings 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 %, 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.


Atlas Air Worldwide Holdings ROIC % Related Terms

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Atlas Air Worldwide Holdings Business Description

Atlas Air Worldwide Holdings logo
Traded in Other Exchanges
Address
2000 Westchester Avenue, Purchase, NY, USA, 10577-2543
Atlas Air Worldwide Holdings Inc, together with its subsidiaries, is a leading global provider of outsourced aircraft and aviation operating services. The company owns a fleet of freighters and passenger aircraft and leases additional aircraft and engines to expand its portfolio. It gives customers access to new production aircraft and offers crew, maintenance, and insurance services. In addition, the company operates a charter division to provide air cargo and passenger aircraft charters. Atlas Air customers include airlines, express delivery providers, freight forwarders, the U.S. military, and charter brokers. It provides global services to regions in Africa, Asia, Australia, Europe, the Middle East, and the Americas.
Executives
Borst Walter G director 2701 NAVISTAR DRIVE LISLE IL 60532
Conner Raymond L. director ALASKA AIR GROUP, INC. 19300 INTERNATIONAL BLVD SEATTLE WA 98188
Willis George director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Zierhoffer Carol J director 100 NORTH POINT CENTER EAST SUITE 200 ALPHARETTA GA 30022
Goulet, Beverly K. director 10990 ROE AVENUE OVERLAND PARK KS 66211
Forbes James Anthony officer: EVP & COO C/O ATLAS AIR WORLDWIDE HOLDINGS, INC. 2000 WESTCHESTER AVENUE PURCHASE NY 10577
Stamps Sheila A director C/O CIT GROUP, 1 CIT DRIVE ATTN: GENERAL COUNSEL LIVINGSTON NJ 07039
Lute Jane H director 4404 33RD ROAD NORTH ARLINGTON VA 22207
Bolden Charles F Jr director MARATHON OIL CORP 5555 SAN FELIPE ROAD HOUSTON TX 77056
Griffin Bobby J director C/O UNITED RENTALS, INC. 100 FIRST STAMFORD PL STE 700 STAMFORD CT 06902
Wulff John K director C/O HERCULES INC 1313 NORTH MARKET STREET WILMINGTON DE 19894-0001
Mcnabb Duncan J. director C/O ATLAS AIR WORLDWIDE HOLDINGS, INC. 2000 WESTCHESTER AVENUE PURCHASE NY 10577
Mayer Keith H. officer: Vice President & Controller ATLAS AIR WORLDWIDE HOLDINGS, INC. 2000 WESTCHESTER AVENUE PURCHASE NY 10577
Harbinger Capital Partners Llc 10 percent owner, other: *See Remarks 450 PARK AVENUE, 30TH FLOOR NEW YORK NY 10022
Harbinger Holdings, Llc 10 percent owner, other: *See Remarks 450 PARK AVENUE, 30TH FLOOR NEW YORK NY 10022

Atlas Air Worldwide Holdings Headlines

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