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GMLPF.PFD (Golar LNG Partners LP) ROC % : 4.01% (As of Dec. 2020)


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What is Golar LNG Partners LP 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 %. Golar LNG Partners LP's annualized return on capital (ROC %) for the quarter that ended in Dec. 2020 was 4.01%.

As of today (2024-10-31), Golar LNG Partners LP's WACC % is 2.78%. Golar LNG Partners LP's ROC % is 0.95% (calculated using TTM income statement data). Golar LNG Partners LP earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Golar LNG Partners LP ROC % Historical Data

The historical data trend for Golar LNG Partners LP'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.

* Premium members only.

Golar LNG Partners LP ROC % Chart

Golar LNG Partners LP Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.56 9.30 5.74 2.92 1.40

Golar LNG Partners LP Quarterly Data
Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20
ROC % Get a 7-Day Free Trial 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 5.82 5.63 3.80 3.64 4.01

Golar LNG Partners LP ROC % Calculation

Golar LNG Partners LP's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

ROC % (A: Dec. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2019 ) + Invested Capital (A: Dec. 2020 ))/ count )
=124.876 * ( 1 - 72.54% )/( (2245.841 + 2668.587)/ 2 )
=34.2909496/2457.214
=1.40 %

where

Invested Capital(A: Dec. 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))
=2105.612 - 35.626 - ( 47.661 - max(0, 309.154 - 133.299+47.661))
=2245.841

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))
=2027.661 - 44.53 - ( 48.783 - max(0, 832.277 - 146.821+48.783))
=2668.587

Golar LNG Partners LP's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2020 is calculated as:

ROC % (Q: Dec. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2020 ) + Invested Capital (Q: Dec. 2020 ))/ count )
=128.86 * ( 1 - 17.54% )/( (2626.142 + 2668.587)/ 2 )
=106.257956/2647.3645
=4.01 %

where

Invested Capital(Q: Sep. 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))
=2041.206 - 4.427 - ( 42.263 - max(0, 729.06 - 139.697+42.263))
=2626.142

Invested Capital(Q: 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))
=2027.661 - 44.53 - ( 48.783 - max(0, 832.277 - 146.821+48.783))
=2668.587

Note: The Operating Income data used here is four times the quarterly (Dec. 2020) 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.


Golar LNG Partners LP  (OTCPK:GMLPF.PFD) 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, Golar LNG Partners LP's WACC % is 2.78%. Golar LNG Partners LP's ROC % is 0.95% (calculated using TTM income statement data). Golar LNG Partners LP 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.


Golar LNG Partners LP ROC % Related Terms

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Golar LNG Partners LP Business Description

Traded in Other Exchanges
N/A
Address
9 Par-la-Ville Road, 2nd Floor, South East Pearman Building, Hamilton, BMU, HM 11
Golar LNG Partners LP owns and operates floating storage regasification units (FSRUs) and liquefied natural gas (LNG) carriers under long-term time charters. The company has three reportable segments: LNG, FSRUs, and FING (floating liquefied natural gas vessel). It generates maximum revenue from the FSRUs segment. Its geographical segments are Brazil, Jordan, Indonesia, Kuwait, and the United Arab Emirates. The company's operational FSRU projects include Golar Spirit, Golar Igloo, Golar Eskimo, Golar Winter, Golar Freeze, and Nusantara Regas Satu.

Golar LNG Partners LP Headlines

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