Providence & Worcester Railroad Co (Providence & Worcester Railroad Co) ROC % : 0.68% (As of Jun. 2016)

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What is Providence & Worcester Railroad 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 %. Providence & Worcester Railroad Co's annualized return on capital (ROC %) for the quarter that ended in Jun. 2016 was 0.68%.

As of today (2024-06-20), Providence & Worcester Railroad Co's WACC % is 0.00%. Providence & Worcester Railroad Co's ROC % is 0.00% (calculated using TTM income statement data). Providence & Worcester Railroad Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Providence & Worcester Railroad Co ROC % Historical Data

The historical data trend for Providence & Worcester Railroad 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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Providence & Worcester Railroad Co ROC % Chart

Providence & Worcester Railroad Co Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROC %

Get a 7-Day Free Trial

0.25

1.78

1.32

2.73

1.76

Providence & Worcester Railroad Co Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
ROC %	Get a 7-Day Free Trial															2.87	1.79	5.81	-3.94	0.68

Providence & Worcester Railroad Co ROC % Calculation

Providence & Worcester Railroad Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	2.586 * ( 1 - 31.28% )	/	( (99.837	+	101.972)	/ 2 )
=	1.7770992	/	100.9045
=	1.76 %

where

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	111.933	-	5.682	-	( 6.414	-	max(0, 5.912	-	13.521	+	6.414	))
=	99.837

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	114.157	-	5.904	-	( 6.281	-	max(0, 6.243	-	12.79	+	6.281	))
=	101.972

Providence & Worcester Railroad Co's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2016 is calculated as:

	ROC % (Q: Jun. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2016 )	+	Invested Capital (Q: Jun. 2016 ))	/ count )
=	0.92 * ( 1 - 24.49% )	/	( (101.432	+	104.38)	/ 2 )
=	0.694692	/	102.906
=	0.68 %

where

	Invested Capital		(Q: Mar. 2016 )
=	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	))
=	111.996	-	5.334	-	( 5.619	-	max(0, 5.801	-	11.031	+	5.619	))
=	101.432

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	119.212	-	7.848	-	( 8.607	-	max(0, 8.443	-	15.427	+	8.607	))
=	104.38

Note: The Operating Income data used here is four times the quarterly (Jun. 2016) data.

Providence & Worcester Railroad Co (NAS:PWX) 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, Providence & Worcester Railroad Co's WACC % is 0.00%. Providence & Worcester Railroad Co's ROC % is 0.00% (calculated using TTM income statement data). Providence & Worcester Railroad 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.

Providence & Worcester Railroad Co ROC % Related Terms

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Providence & Worcester Railroad Co (Providence & Worcester Railroad Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Providence & Worcester Railroad Co (NAS:PWX) » Definitions » ROC %

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Traded in Other Exchanges

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Address

Website

http://www.pwrr.com

Providence & Worcester Railroad Co commenced its operations in 1973. The Company is a short-line freight railroad as defined by the American Association of Railroads operating in Massachusetts, Rhode Island, Connecticut and New York. The Company is the only interstate freight carrier serving the State of Rhode Island. The Company services the international double-stack intermodal terminal facility in New England in Worcester, Massachusetts, a strategic location for regional transportation and distribution enterprises. The Company transports commodities for its customers, including automobiles, construction aggregates, iron and steel products, chemicals and plastics, lumber, scrap metals, plastic resins, cement, coal, construction and demolition debris, and processed foods and edible foodstuffs, such as corn syrup and vegetable oils. Its customers include Exxon Mobil Corporation, Ford Motor Company, Frito-Lay, Inc., Global LLP, GDF SUEZ Energy North America, International Paper Company, Lehigh Cement, Cargill, Inc., Northeast Utilities, Nucor Steel, Rawson Materials, Renewable Products Marketing Group, Subaru of New England, Tilcon Connecticut, Inc. and Toray Plastics, Inc. The Company competes with other carriers in the siting of new rail-oriented businesses in the region. The Company also competes with other modes of transportation, particularly long-haul trucking companies, for the transportation of commodities, and ocean-going vessels for the transportation of containers. The Company is subject to governmental regulation by the STB, the FRA, the Transportation Security Administration and other federal, state and local regulatory authorities with respect to certain rates and railroad operations, as well as a variety of health, safety, labor, environmental and other matters.

Executives

Daniel T Noreck	officer: Treasurer and CFO	75 HAMMOND STREET, WORCESTER MA 01610
P Scott Conti	director, officer: President and COO	75 HAMMOND STREET, WORCESTER MA 01610
Robert H Eder	director, 10 percent owner, officer: Chief Executive Officer	5 STEEPLE STREET, #303, PROVIDENCE RI 02903
Linda Eder	10 percent owner	100 DEXTER ROAD, EAST PROVIDENCE RI 02914
Craig M Scott	director	75 HAMMOND STREET, WORCESTER MA 01610
Stephen J Carlotti	10 percent owner	1500 FLEET CENTER, PROVIDENCE RI 02903
Merrill W Sherman	director	131 CLARENDON STREET, BOSTON MA 02116

Providence & Worcester Railroad Co (Providence & Worcester Railroad Co) Headlines

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