Market Cap : 3.29 B | Enterprise Value : 4.68 B | PE Ratio : 50.02 | PB Ratio : 8.92 |
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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 %. Welbilt's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2022 was 7.09%.
As of today (2022-05-21), Welbilt's WACC % is 12.97%. Welbilt's ROIC % is 6.35% (calculated using TTM income statement data). Welbilt earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Welbilt'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 Specialty Industrial Machinery subindustry, Welbilt'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 Industrial Products industry and Industrials sector, Welbilt's ROIC % distribution charts can be found below:
* The bar in red indicates where Welbilt's ROIC % falls into.
Welbilt'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 ) |
= | 182.6 * ( 1 - 29.13% ) | / | ( (1826.5 | + | 1886.8) | / 2 ) |
= | 129.40862 | / | 1856.65 | |||
= | 6.97 % |
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 | )) |
= | 2141.6 | - | 190.1 | - | ( 125 | - | max(0, 281.5 | - | 522 | + | 125 | )) |
= | 1826.5 |
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 | )) |
= | 2277.6 | - | 256.6 | - | ( 134.2 | - | max(0, 373.1 | - | 708.1 | + | 134.2 | )) |
= | 1886.8 |
Welbilt's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2022 is calculated as:
ROIC % (Q: Mar. 2022 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Dec. 2021 ) | + | Invested Capital (Q: Mar. 2022 )) | / count ) |
= | 92.4 * ( 1 - -50% ) | / | ( (1886.8 | + | 2022.9) | / 2 ) |
= | 138.6 | / | 1954.85 | |||
= | 7.09 % |
where
Invested Capital | (Q: 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 | )) |
= | 2277.6 | - | 256.6 | - | ( 134.2 | - | max(0, 373.1 | - | 708.1 | + | 134.2 | )) |
= | 1886.8 |
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 | )) |
= | 2337.9 | - | 206.7 | - | ( 108.3 | - | max(0, 379.2 | - | 1211 | + | 108.3 | )) |
= | 2022.9 |
Note: The Operating Income data used here is four times the quarterly (Mar. 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, Welbilt's WACC % is 12.97%. Welbilt's ROIC % is 6.35% (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.
Thank you for viewing the detailed overview of Welbilt's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Agard Martin D. | officer: EVP Chief Financial Officer | 3000 JOHN DEERE ROAD TOANO VA 23168 |
Perez Kimberly Ann | officer: VP, Chief Accounting Officer | 4211 W. BOY SCOUT BLVD. TAMPA FL 33607 |
Fields Janice L | director | 800 NORTH LINDBERGH BLVD. ST. LOUIS MO 63167 |
Egnotovich Cynthia M | director | PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: EGNOTOVICH CYNTHIA M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;} |
Sheffer Richard James | officer: VP, IR, Risk Mgmt, Treasurer | MANITOWOC FOODSERVICE INC. 2227 WELBILT BLVD. NEW PORT RICHEY FL 34655 |
Palm Jamie E | officer: VP, Corp Controller, CAO | 2227 WELBILT BLVD NEW PORT RICHEY FL 34655 |
Caron Richard N. | officer: EVP Chief Innovation Officer | MANITOWOC FOODSERVICE INC 2227 WELBILT BLVD NEW PORT RICHEY FL 34655 |
Gudenkauf Jennifer | officer: EVP & CHRO | 2227 WELBILT BLVD NEW PORT RICHEY FL 34655 |
Johnson William | director, officer: President and CEO | 3005 HIGHLAND PARKWAY SUITE 200 DOWNERS GROVE IL 60515 |
Chow Joan Kai | director | 215 W DIEHL ROAD NAPERVILLE IL 60563 |
Horn Joel H. | officer: EVP, Gen Counsel and Corp Secy | 2227 WELBILT BOULEVARD NEW PORT RICHEY FL 34655 |
Davis Thomas Dale | director | MANITOWOC FOODSERVICE INC 2227 WELBILT BLVD NEW PORT RICHEY FL 34655 |
Gamache Brian R | director | PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: GAMACHE BRIAN R a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;} |
Matosevic Josef | officer: EVP Chief Operating Officer | 1500 WEST UNIVERSITY PARKWAY SARASOTA FL 34243 |
Langham Andrew | director | C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160 |
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