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Winnebago Industries ROIC %

: 23.33% (As of Feb. 2021)
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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 %. Winnebago Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2021 was 23.33%.

As of today (2021-05-07), Winnebago Industries's WACC % is 13.73%. Winnebago Industries's ROIC % is 14.76% (calculated using TTM income statement data). Winnebago Industries 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.


Winnebago Industries ROIC % Historical 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.

* Premium members only.

Winnebago Industries Annual Data
Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20
ROIC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.92 13.15 13.76 13.45 8.36

Winnebago Industries Quarterly Data
May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21
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 7.39 -1.91 17.21 20.67 23.33

Competitive Comparison
* 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.


Winnebago Industries ROIC % Distribution

* The bar in red indicates where Winnebago Industries's ROIC % falls into.



Winnebago Industries ROIC % Calculation

Winnebago Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Aug. 2020 is calculated as:

ROIC % (A: Aug. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Aug. 2019 ) + Invested Capital (A: Aug. 2020 ))/ count )
=113.763 * ( 1 - 20.49% )/( (942.712 + 1221.299)/ 2 )
=90.4529613/1082.0055
=8.36 %

where

Invested Capital(A: Aug. 2019 )
=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))
=1104.231 - 124.088 - ( 37.431 - max(0, 197.744 - 410.657+37.431))
=942.712

Invested Capital(A: Aug. 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))
=1713.7 - 199.826 - ( 292.575 - max(0, 300.39 - 713.61+292.575))
=1221.299

Winnebago Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Feb. 2021 is calculated as:

ROIC % (Q: Feb. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2020 ) + Invested Capital (Q: Feb. 2021 ))/ count )
=399.9 * ( 1 - 23.46% )/( (1298.772 + 1324.903)/ 2 )
=306.08346/1311.8375
=23.33 %

where

Invested Capital(Q: Nov. 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))
=1780.99 - 209.279 - ( 272.939 - max(0, 313.401 - 788.42+272.939))
=1298.772

Invested Capital(Q: Feb. 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))
=1855.795 - 197.877 - ( 333.015 - max(0, 321.003 - 864.978+333.015))
=1324.903

Note: The Operating Income data used here is four times the quarterly (Feb. 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.


Winnebago Industries  (NYSE:WGO) 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, Winnebago Industries's WACC % is 13.73%. Winnebago Industries's ROIC % is 14.76% (calculated using TTM income statement data). Winnebago Industries 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. Winnebago Industries 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.


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