The Energy House Holding Co (KUW:ENERGYH) ROC % : -69.49% (As of Dec. 2024)

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What is The Energy House Holding Co 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 %. The Energy House Holding Co's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -69.49%.

As of today (2025-03-16), The Energy House Holding Co's WACC % is 10.30%. The Energy House Holding Co's ROC % is -54.13% (calculated using TTM income statement data). The Energy House Holding Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

The Energy House Holding Co ROC % Historical Data

The historical data trend for The Energy House Holding Co'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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The Energy House Holding Co ROC % Chart

The Energy House Holding Co Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROC %

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-14.13

-8.33

-10.43

-23.24

-45.09

The Energy House Holding Co Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial															-26.42	-36.33	-45.37	-78.11	-69.49

The Energy House Holding Co ROC % Calculation

The Energy House Holding Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	-0.841 * ( 1 - 0% )	/	( (1.912	+	1.818)	/ 2 )
=	-0.841	/	1.865
=	-45.09 %

where

	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	))
=	4.733	-	1.131	-	( 3.136	-	max(0, 1.721	-	3.411	+	3.136	))
=	1.912

	Invested Capital		(A: Dec. 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	))
=	3.991	-	1.076	-	( 2.445	-	max(0, 1.506	-	2.603	+	2.445	))
=	1.818

The Energy House Holding Co's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	-1.116 * ( 1 - 0% )	/	( (1.394	+	1.818)	/ 2 )
=	-1.116	/	1.606
=	-69.49 %

where

	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	))
=	4.16	-	1.522	-	( 2.591	-	max(0, 1.544	-	2.788	+	2.591	))
=	1.394

	Invested Capital		(Q: Dec. 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	))
=	3.991	-	1.076	-	( 2.445	-	max(0, 1.506	-	2.603	+	2.445	))
=	1.818

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

The Energy House Holding Co (KUW:ENERGYH) 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, The Energy House Holding Co's WACC % is 10.30%. The Energy House Holding Co's ROC % is -54.13% (calculated using TTM income statement data). The Energy House Holding Co 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.

The Energy House Holding Co ROC % Related Terms

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The Energy House Holding Co Business Description

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Address

Abdullah Al-Mubarak Street, P.O. Box 21909, Al-Enmaa Tower, 14th Floor, Mirqab, Safat, Kuwait, KWT, 13080

Website

https://www.energyhouse.com.kw

The Energy House Holding Co that specializes in investments in medium-sized entities in the energy sector. The company majorly focuses on owning shares in both Kuwaiti and foreign joint stock companies, as well as in Kuwaiti or foreign limited liability companies, sometimes even creating new ones. It's all about smartly managing these investments, ensuring it grow and perform well. The company also helps by lending money when needed and sponsoring encouraging projects. This way, it plays a substantial role in supporting businesses and initiatives, both at home and abroad. Overall, the parent company's operations center on making astute investments, effective management, and providing assistance where it is utmost needed.

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