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Izdemir Enerji Elektrik Uretim AS (IST:IZENR) ROC % : -2.69% (As of Sep. 2024)


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What is Izdemir Enerji Elektrik Uretim AS 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 %. Izdemir Enerji Elektrik Uretim AS's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -2.69%.

As of today (2025-03-02), Izdemir Enerji Elektrik Uretim AS's WACC % is 10.21%. Izdemir Enerji Elektrik Uretim AS's ROC % is 0.18% (calculated using TTM income statement data). Izdemir Enerji Elektrik Uretim AS earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Izdemir Enerji Elektrik Uretim AS ROC % Historical Data

The historical data trend for Izdemir Enerji Elektrik Uretim AS'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.

Izdemir Enerji Elektrik Uretim AS ROC % Chart

Izdemir Enerji Elektrik Uretim AS Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROC %
7.76 10.39 65.39 11.31

Izdemir Enerji Elektrik Uretim AS Quarterly Data
Dec20 Dec21 Mar22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.15 41.74 245.75 -7.22 -2.69

Izdemir Enerji Elektrik Uretim AS ROC % Calculation

Izdemir Enerji Elektrik Uretim AS'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 )
=648.087 * ( 1 - -50.92% )/( (7486.75 + 9805.003)/ 2 )
=978.0929004/8645.8765
=11.31 %

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))
=7757.019 - 246.862 - ( 23.407 - max(0, 1415.939 - 1652.64+23.407))
=7486.75

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))
=10538.752 - 107.199 - ( 626.55 - max(0, 157.992 - 1966.482+626.55))
=9805.003

Izdemir Enerji Elektrik Uretim AS'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 )
=-632.344 * ( 1 - 48.05% )/( (11884.149 + 12574.214)/ 2 )
=-328.502708/12229.1815
=-2.69 %

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))
=12364.728 - 208.993 - ( 271.586 - max(0, 475.728 - 1880.172+271.586))
=11884.149

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))
=13365.885 - 147.036 - ( 644.635 - max(0, 282.167 - 2086.523+644.635))
=12574.214

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.


Izdemir Enerji Elektrik Uretim AS  (IST:IZENR) 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, Izdemir Enerji Elektrik Uretim AS's WACC % is 10.21%. Izdemir Enerji Elektrik Uretim AS's ROC % is 0.18% (calculated using TTM income statement data). Izdemir Enerji Elektrik Uretim AS 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.


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Izdemir Enerji Elektrik Uretim AS Business Description

Traded in Other Exchanges
N/A
Address
Nemrut Cad Number 2, Horozgedigi Village, ?zmir District, Aliaga, TUR, 35808
Izdemir Enerji Elektrik Uretim AS is an electricity generation corporation it has been established with the latest technology in accordance with the technical and environmental standards valid in Turkey and internationally which supplies 2.562 million kWh of electrical energy annually. Its power generation facility uses pulverized coal burning technology.

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