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NEXT (NextDecade) ROC % : -4.18% (As of Sep. 2024)


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What is NextDecade 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 %. NextDecade's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -4.18%.

As of today (2025-03-02), NextDecade's WACC % is 9.21%. NextDecade's ROC % is -4.23% (calculated using TTM income statement data). NextDecade earns returns that do not match up to its cost of capital. It will destroy value as it grows.


NextDecade ROC % Historical Data

The historical data trend for NextDecade'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.

NextDecade ROC % Chart

NextDecade Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -28.49 -13.35 -10.15 -23.76 -7.47

NextDecade 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 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 -10.37 -4.70 -4.40 -3.74 -4.18

NextDecade ROC % Calculation

NextDecade'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 )
=-122.668 * ( 1 - 0% )/( (256.235 + 3028.54)/ 2 )
=-122.668/1642.3875
=-7.47 %

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))
=3323.801 - 533.123 - ( 38.241 - max(0, 552.387 - 314.525+38.241))
=3028.54

NextDecade'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 )
=-196.624 * ( 1 - 0% )/( (4542.902 + 4866.484)/ 2 )
=-196.624/4704.693
=-4.18 %

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))
=4757.174 - 489.772 - ( 38.142 - max(0, 499.555 - 224.055+38.142))
=4542.902

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))
=5123.962 - 544.379 - ( 38.23 - max(0, 558.274 - 271.373+38.23))
=4866.484

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.


NextDecade  (NAS:NEXT) 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, NextDecade's WACC % is 9.21%. NextDecade's ROC % is -4.23% (calculated using TTM income statement data). NextDecade 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.


NextDecade ROC % Related Terms

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NextDecade Business Description

Traded in Other Exchanges
Address
1000 Louisiana Street, Suite 3900, Houston, TX, USA, 77002
NextDecade Corp is a energy company predominantly engaged in construction and development activities related to the liquefaction of natural gas and sale of LNG and the capture and storage of CO2 emissions. The company provides a number of services depending on the individual needs of the customer. These include the supply and trade of LNG volumes, the creation of new natural gas infrastructure including pipeline and natural gas liquefaction facilities, treatment and processing of natural gas into LNG, as well as technical engineering and design services related to the development and execution of natural gas infrastructure, transporting, shipping and storage of LNG.
Executives
Hgc Next Inv Llc 10 percent owner 501 2ND STREET, SUITE 500, SAN FRANCISCO CA 94107
York Capital Management Global Advisors, Llc director, 10 percent owner 1330 AVENUE OF THE AMERICAS, 20TH FLOOR, NEW YORK NY 10019
Halcyon Mount Bonnell Fund Lp director C/O HALCYON CAPITAL MANAGEMENT, LLC, 477 MADISON AVE., 8TH FLOOR, NEW YORK NY 10022
Halcyon Capital Management Lp director 299 PARK AVENUE, NEW YORK NY 10171
James G Dinan 10 percent owner 390 PARK AVE 15TH FLOOR, NEW YORK NY 10022
Seguineau De Preval Thibaud Marie director 2, PLACE JEAN MILLIER, LA DEFENSE 6, COURBEVOIE I0 92400
Global Lng North America Corp. director, 10 percent owner 1201 LOUISIANA ST., SUITE 1800, HOUSTON TX 77002
Totalenergies Delaware, Inc. director, 10 percent owner 1201 LOUISIANA STREET, SUITE 1800, HOUSTON TX 77002
Totalenergies Holdings Usa, Inc. director, 10 percent owner 1201 LOUISIANA STREET, SUITE 1800, HOUSTON TX 77002
Totalenergies Gestion Usa Sarl director, 10 percent owner LA DEFENSE 6 2 PLACE JEAN MILLIER, COURBEVOIE, HAUTS-DE-SEINE I0 92400
Hanwha Impact Partners Inc. 10 percent owner 501 2ND STREET, SUITE 500, SAN FRANCISCO CA 94107
Se Totalenergies director, 10 percent owner 2 PLACE JEAN MILLIER, ARCHE NORD COUPOLE/REGNAULT, PARIS LA DEFENSE CEDEX I0 92078
Hanwha Impact Global Corp 10 percent owner 501 2ND STREET, SUITE 500, SAN FRANCISCO CA 94107
Giovanni Oddo director 1000 LOUISIANA STREET, HOUSTON TX 77002
Seokwon Ha director 1000 LOUISIANA STREET, HOUSTON TX 77002