ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Gulfport Energy's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 0.74%.
As of today (2024-12-15), Gulfport Energy's WACC % is 9.21%. Gulfport Energy's ROC % is 2.70% (calculated using TTM income statement data).
Gulfport Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Gulfport Energy ROC % Historical Data
The historical data trend for Gulfport Energy'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.
Note:
The Operating Income data used here is four times the quarterly (Sep. 2024) 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.
Gulfport Energy (NYSE:GPOR) 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, Gulfport Energy's WACC % is 9.21%. Gulfport Energy's ROC % is 2.70% (calculated using TTM income statement data).
Gulfport Energy 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.
Gulfport Energy ROC % Related Terms
Thank you for viewing the detailed overview of Gulfport Energy's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Gulfport Energy Corp is an independent natural gas-weighted exploration and production company focused on the exploration, acquisition and production of natural gas, crude oil and NGL in the United States. It operates through Utica Shale and Scoop properties. The Utica Shale is located in the Appalachian Basin of the United States and Canada. The Scoop (South Central Oklahoma Oil Province) play of Oklahoma is located in the southeast portion of the prolific Anadarko Basin.
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