RNSGP.PFD (Resolute Energy) ROC % : 12.54% (As of Sep. 2018)

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What is Resolute Energy 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 %. Resolute Energy's annualized return on capital (ROC %) for the quarter that ended in Sep. 2018 was 12.54%.

As of today (2024-12-12), Resolute Energy's WACC % is 0.00%. Resolute Energy's ROC % is 9.88% (calculated using TTM income statement data). Resolute Energy generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Resolute Energy ROC % Historical Data

The historical data trend for Resolute 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.

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Resolute Energy ROC % Chart

Resolute Energy Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

ROC %

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2.58

0.45

-8.38

-7.88

6.39

Resolute Energy Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
ROC %	Get a 7-Day Free Trial															4.45	6.93	1.02	7.42	12.54

Resolute Energy ROC % Calculation

Resolute Energy's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2017 is calculated as:

	ROC % (A: Dec. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2016 )	+	Invested Capital (A: Dec. 2017 ))	/ count )
=	44.019 * ( 1 - 19.2% )	/	( (527.637	+	585.409)	/ 2 )
=	35.567352	/	556.523
=	6.39 %

where

	Invested Capital		(A: Dec. 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	))
=	588.373	-	98.925	-	( 133.089	-	max(0, 229.973	-	191.784	+	133.089	))
=	527.637

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	641.922	-	139.437	-	( 3.762	-	max(0, 160.799	-	77.875	+	3.762	))
=	585.409

Resolute Energy's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2018 is calculated as:

	ROC % (Q: Sep. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2018 )	+	Invested Capital (Q: Sep. 2018 ))	/ count )
=	103.34 * ( 1 - 0% )	/	( (780.186	+	867.55)	/ 2 )
=	103.34	/	823.868
=	12.54 %

where

	Invested Capital		(Q: Jun. 2018 )
=	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	))
=	826.628	-	198.468	-	( 0.815	-	max(0, 232.183	-	80.157	+	0.815	))
=	780.186

	Invested Capital		(Q: Sep. 2018 )
=	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	))
=	897.792	-	224.013	-	( 3.269	-	max(0, 270.8	-	77.029	+	3.269	))
=	867.55

Note: The Operating Income data used here is four times the quarterly (Sep. 2018) data.

Resolute Energy (OTCPK:RNSGP.PFD) 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, Resolute Energy's WACC % is 0.00%. Resolute Energy's ROC % is 9.88% (calculated using TTM income statement data). Resolute Energy generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Resolute Energy ROC % Related Terms

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Resolute Energy Business Description

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Address

1700 Lincoln Street, Suite 2800, Denver, CO, USA, 80203

Website

http://www.resoluteenergy.com

Resolute Energy Corp is an independent oil and gas company engaged in the exploitation, development, exploration for and acquisition of oil and gas properties. The group primarily operates in Oil, Gas and Natural gas liquids division. The company's operating assets are comprised primarily of properties in the Permian Basin in west Texas and southeast New Mexico and Aneth Field located in the Paradox Basin in the southeast. Geographically all the business activities of the firm are operated through the United States of America. Resolute derives the majority of revenue from oil division.