DSX (Diana Shipping) ROC % : 4.96% (As of Sep. 2024)

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What is Diana Shipping ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Diana Shipping's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 4.96%.

As of today (2024-12-13), Diana Shipping's WACC % is 7.54%. Diana Shipping's ROC % is 5.33% (calculated using TTM income statement data). Diana Shipping earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Diana Shipping ROC % Historical Data

The historical data trend for Diana Shipping's ROC % 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.

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Diana Shipping ROC % Chart

Diana Shipping Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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3.56

-0.81

7.90

14.43

7.32

Diana Shipping Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															6.86	6.07	5.40	4.77	4.96

Diana Shipping ROC % Calculation

Diana Shipping's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	80.389 * ( 1 - 0% )	/	( (1150.41	+	1046.485)	/ 2 )
=	80.389	/	1098.4475
=	7.32 %

where

	Invested Capital		(A: Dec. 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	))
=	1182.919	-	23.512	-	( 122.928	-	max(0, 131.567	-	140.564	+	122.928	))
=	1150.41

	Invested Capital		(A: Dec. 2023 )
=	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	))
=	1166.41	-	22.838	-	( 162.321	-	max(0, 85.134	-	182.221	+	162.321	))
=	1046.485

Diana Shipping's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	49.916 * ( 1 - 0% )	/	( (1038.586	+	974.397)	/ 2 )
=	49.916	/	1006.4915
=	4.96 %

where

	Invested Capital		(Q: Jun. 2024 )
=	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	))
=	1148.499	-	21.156	-	( 120.541	-	max(0, 80.978	-	169.735	+	120.541	))
=	1038.586

	Invested Capital		(Q: Sep. 2024 )
=	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	))
=	1161.202	-	0	-	( 186.805	-	max(0, 0	-	207.633	+	186.805	))
=	974.397

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Diana Shipping (NYSE:DSX) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Diana Shipping's WACC % is 7.54%. Diana Shipping's ROC % is 5.33% (calculated using TTM income statement data). Diana Shipping 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 %, ROC % 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.

Diana Shipping ROC % Related Terms

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Diana Shipping Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Diana Shipping Inc (NYSE:DSX) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

DSXpB.PFD:USA DSZ:Germany DSZ:Germany DSZ:Germany

Address

175 64 Palaio Faliro, Pendelis 16, Athens, GRC, 175 64

Website

https://www.dianashippinginc.com

Diana Shipping Inc provides shipping transportation services. The company, through its subsidiaries, operates a fleet of vessels consisting of dry bulk carriers such as Panamax, Kamsarmax, Post-Panamax, Capesize and Newcastlemax vessels. Using this fleet, the firm provides transportation services for various goods including coal, iron ore, and grains. It also transports minor bulks, including steel products, cement, and fertilizers through its dry bulk carrier vessels. The operation of the vessels is the main source of revenue generation, the services provided by the vessels are similar and all operate under the same economic environment.