Market Cap : 1.12 B | Enterprise Value : 2.07 B | PE Ratio : At Loss | PB Ratio : 1.75 |
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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 %. US Silica Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2022 was 7.44%.
As of today (2022-08-17), US Silica Holdings's WACC % is 10.36%. US Silica Holdings's ROIC % is 1.50% (calculated using TTM income statement data). US Silica Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for US Silica 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.
For the Oil & Gas Equipment & Services subindustry, US Silica 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.
For the Oil & Gas industry and Energy sector, US Silica Holdings's ROIC % distribution charts can be found below:
* The bar in red indicates where US Silica Holdings's ROIC % falls into.
US Silica 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 ) |
= | 28.137 * ( 1 - 7.43% ) | / | ( (1975.445 | + | 1812.532) | / 2 ) |
= | 26.0464209 | / | 1893.9885 | |||
= | 1.38 % |
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 | )) |
= | 2246.947 | - | 120.582 | - | ( 150.92 | - | max(0, 194.895 | - | 486.313 | + | 150.92 | )) |
= | 1975.445 |
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 | )) |
= | 2219.6 | - | 167.643 | - | ( 239.425 | - | max(0, 205.871 | - | 575.915 | + | 239.425 | )) |
= | 1812.532 |
US Silica 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 ) |
= | 200.34 * ( 1 - 34.3% ) | / | ( (1776.093 | + | 1763.61) | / 2 ) |
= | 131.62338 | / | 1769.8515 | |||
= | 7.44 % |
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 | )) |
= | 2187.697 | - | 171.836 | - | ( 239.768 | - | max(0, 203.94 | - | 576.912 | + | 239.768 | )) |
= | 1776.093 |
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 | )) |
= | 2279.111 | - | 203.122 | - | ( 312.379 | - | max(0, 248.328 | - | 684.253 | + | 312.379 | )) |
= | 1763.61 |
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.
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, US Silica Holdings's WACC % is 10.36%. US Silica Holdings's ROIC % is 1.50% (calculated using TTM income statement data).
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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Rogers Sandra | director | 24275 KATY FREEWAY SUITE 600 KATY TX 77494 |
Ussery James Derek | officer: President Oil and Gas | 1301 MCKINNEY ST STE 1800 HOUSTON TX 77010 |
Crowder Donna Lynnette | officer: SVP and CHRO | 24275 KATY FREEWAY SUITE 600 KATY TX 77494 |
Russell Stacy | officer: SVP General Counsel | 24275 KATY FREEWAY SUITE 600 KATY TX 77494 |
Lind Bonnie Cruickshank | director | 3460 PRESTON RIDGE ROAD ALPHARETTA GA 30005 |
Carusona Zach | officer: President Specialty Minerals | 24275 KATY FREEWAY SUITE 600 KATY TX 77494 |
Miers Daniel Ross | officer: President SandBox Logistics | 1301 MCKINNEY ST STE 1800 HOUSTON TX 77010 |
Macan William Andrew | officer: See Remarks | 24275 KATY FREEWAY, SUITE 600 KATY TX 77494 |
Stice J Michael | director | 525 CENTRAL PARK DRIVE OKLAHOMA CITY OK 73105 |
Bernard Peter Clark | director | 8490 PROGRESS DRIVE SUITE 300 FREDERICK MD 21701 |
Shaver Charles W | director | C/O US SILICA 8490 PROGRESS DR. STE 300 FREDERICK MD 21701 |
Smith Billy Ray | officer: SVP & President, Oil & Gas | 8490 PROGRESS DRIVE, SUITE 300 FREDERICK MD 21701 |
Duren Diane K | director | PO BOX 45308 OMAHA NE 68145 |
Kacal William Jennings | director | 2112 INWOOD DRIVE HOUSTON TX 77019 |
Merril Donald A | officer: EVP & Chief Financial Officer | 1293 SOUTH MAIN STREET AKRON OH 44301 |
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