ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. National Energy Services Reunited's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2021 was -23.38%.
As of today (2024-04-25), National Energy Services Reunited's WACC % is 0.00%. National Energy Services Reunited's ROIC % is 0.00% (calculated using TTM income statement data).
National Energy Services Reunited earns returns that do not match up to its cost of capital. It will destroy value as it grows.
National Energy Services Reunited ROIC % Historical Data
The historical data trend for National Energy Services Reunited'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.
Competitive Comparison of National Energy Services Reunited's ROIC %
For the Oil & Gas Equipment & Services subindustry, National Energy Services Reunited'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.
National Energy Services Reunited's ROIC % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, National Energy Services Reunited's ROIC % distribution charts can be found below:
* The bar in red indicates where National Energy Services Reunited's ROIC % falls into.
National Energy Services Reunited ROIC % Calculation
National Energy Services Reunited's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Dec. 2021) 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.
National Energy Services Reunited (OTCPK:NESR) 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, National Energy Services Reunited's WACC % is 0.00%. National Energy Services Reunited'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.
National Energy Services Reunited ROIC % Related Terms
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National Energy Services Reunited (National Energy Services Reunited) Business Description
National Energy Services Reunited Corp is a British Virgin Islands-based company engaged in providing products and services to the oil and gas industry in the Middle East and North Africa and the Asia Pacific regions. The company has two reportable segments: Production Services including coil tubing, stimulation, and pumping, nitrogen services, completions, pipelines, cementing, laboratory services and filtration services; and Drilling and Evaluation Services including drilling and workover rigs, rig services, services, and well-testing services among others. Revenues are majorly derived from production services of an oil or natural gas well.
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