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CVR Energy ROIC %

: 47.18% (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 %. CVR Energy's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2022 was 47.18%.

As of today (2022-08-14), CVR Energy's WACC % is 11.68%. CVR Energy's ROIC % is 24.84% (calculated using TTM income statement data). CVR Energy 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.


CVR Energy ROIC % Historical Data

The historical data trend for CVR Energy'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.

CVR Energy 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 33.66 14.99 15.09 -8.08 3.75

CVR Energy 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 0.30 18.34 8.59 26.83 47.18

Competitive Comparison

For the Oil & Gas Refining & Marketing subindustry, CVR Energy'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.

   

CVR Energy ROIC % Distribution

For the Oil & Gas industry and Energy sector, CVR Energy's ROIC % distribution charts can be found below:

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



CVR Energy ROIC % Calculation

CVR Energy'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 )
=90 * ( 1 - -12.12% )/( (2726 + 2660)/ 2 )
=100.908/2693
=3.75 %

where

CVR Energy'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 )
=1608 * ( 1 - 21.64% )/( (2708 + 2633)/ 2 )
=1260.0288/2670.5
=47.18 %

where

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.


CVR Energy  (NYSE:CVI) 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, CVR Energy's WACC % is 11.68%. CVR Energy's ROIC % is 24.84% (calculated using TTM income statement data). CVR Energy 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. CVR Energy 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.


CVR Energy ROIC % Related Terms

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CVR Energy Business Description

CVR Energy logo
Traded in Other Exchanges
Address
2277 Plaza Drive, Suite 500, Sugar Land, TX, USA, 77479
CVR Energy Inc is a holding company that engages in petroleum refining and nitrogen fertilizer manufacturing through its holdings in CVR Refining LP and CVR Partners, LP. CVR Refining LP includes several complex full coking crude oil refineries, along with a crude oil gathering system, pipelines and storage tanks, and marketing and supply. The company's refineries can process blends of a variety of crude oil ranging from heavy sour to light sweet crude oil. Crude oil for CVR's refineries is supplied through its wholly-owned gathering system and pipeline. From its refineries, CVR supplies product through tanker trucks directly to customers located in close geographic proximity and customers at throughput terminals. The company's customers include retailers, railroads, and farm cooperatives.
Executives
Wright Michael H. Jr. officer: EVP & Chief Operating Officer CVR ENERGY, INC. 2277 PLAZA DRIVE, SUITE 500 SUGAR LAND TX 77479
Neumann Dane J. officer: Interim CFO, VP-Fin.&Treasurer 2277 PLAZA DRIVE SUITE 500 SUGAR LAND TX 77479
Conaway Jeffrey D. officer: VP, CAO & Corp. Controller 2277 PLAZA DRIVE SUITE 500 SUGAR LAND TX 77479
Willetts David director 16690 COLLINS AVENUE - PH-1 SUNNY ISLES BEACH FL 33160
Dargan Kapiljeet director 16690 COLLINS AVE. SUITE PH-1 SUNNY ISLES BEACH FL 33160
Johnson Charles Douglas officer: EVP & Chief Commercial Officer 2277 PLAZA DR. SUITE 500 SUGAR LAND TX 77479
Firestone Jaffrey Adam director C/O CVR ENERGY, INC. 2277 PLAZA DRIVE, SUITE 500 SUGAR LAND TX 77479
Landreth David Lynn officer: EVP Chief Commercial Officer 2277 PLAZA DRIVE SUITE 500 SUGAR LAND TX 77479
Agnello Patricia A. director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Gary Hunter Clark director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Buhrig Melissa M officer: EVP, General Counsel & Sec. C/O CVR ENERGY, INC. 2277 PLAZA DRIVE, SUITE 500 SUGAR LAND TX 77479
Jackson Tracy Dawn officer: EVP and CFO 19100 RIDGEWOOD PARKWAY SAN ANTONIO TX 78259
Bley Matthew W. officer: CAO and Corp. Controller 2277 PLAZA DRIVE, SUITE 500 SUGAR LAND TX 77479
Pytosh Mark A officer: EVP - Corporate Services C/O CVR PARTNERS, LP 2277 PLAZA DRIVE, SUITE 500 SUGAR LAND TX 77479
Develasco Janice T officer: VP-Env., Health, Safety & Sec. 2277 PLAZA DRIVE, SUITE 500 SUGAR LAND TX 77479

CVR Energy Headlines

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