Rosseti PJSC (RTC:RSTIP.PFD) ROC % : 5.25% (As of Sep. 2021)

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What is Rosseti PJSC 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 %. Rosseti PJSC's annualized return on capital (ROC %) for the quarter that ended in Sep. 2021 was 5.25%.

As of today (2024-05-28), Rosseti PJSC's WACC % is 7.59%. Rosseti PJSC's ROC % is 4.48% (calculated using TTM income statement data). Rosseti PJSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Rosseti PJSC ROC % Historical Data

The historical data trend for Rosseti PJSC'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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Rosseti PJSC ROC % Chart

Rosseti PJSC Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

ROC %

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7.58

6.94

5.99

4.99

3.76

Rosseti PJSC Quarterly Data
	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21
ROC %	Get a 7-Day Free Trial															4.57	3.56	6.16	4.71	5.25

Rosseti PJSC ROC % Calculation

Rosseti PJSC's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

	ROC % (A: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2019 )	+	Invested Capital (A: Dec. 2020 ))	/ count )
=	132532 * ( 1 - 27.2% )	/	( (2508011	+	2623609)	/ 2 )
=	96483.296	/	2565810
=	3.76 %

where

	Invested Capital		(A: Dec. 2019 )
=	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	))
=	2649579	-	235086	-	( 136605	-	max(0, 415010	-	321492	+	136605	))
=	2508011

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	2730898	-	243450	-	( 86861	-	max(0, 417384	-	281223	+	86861	))
=	2623609

Rosseti PJSC's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2021 is calculated as:

	ROC % (Q: Sep. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2021 )	+	Invested Capital (Q: Sep. 2021 ))	/ count )
=	177968 * ( 1 - 21.76% )	/	( (2635818	+	2672181)	/ 2 )
=	139242.1632	/	2653999.5
=	5.25 %

where

	Invested Capital		(Q: Jun. 2021 )
=	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	))
=	2786407	-	240054	-	( 122422	-	max(0, 407807	-	318342	+	122422	))
=	2635818

	Invested Capital		(Q: Sep. 2021 )
=	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	))
=	2830114	-	229215	-	( 136946	-	max(0, 407959	-	336677	+	136946	))
=	2672181

Note: The Operating Income data used here is four times the quarterly (Sep. 2021) data.

Rosseti PJSC (RTC:RSTIP.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, Rosseti PJSC's WACC % is 7.59%. Rosseti PJSC's ROC % is 4.48% (calculated using TTM income statement data). Rosseti PJSC 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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Rosseti PJSC (RTC:RSTIP.PFD) Business Description

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GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Rosseti PJSC (RTC:RSTIP.PFD) » Definitions » ROC %

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Address

4 Belovezhskaya Street, Moscow, RUS, 121353

Website

http://www.rosseti.ru

Rosseti PJSC is a Russian electric utility company of whom the Russian Federation holds a controlling stake. Rosseti's core business is the transmission and distribution of electricity. With its many subsidiaries in different regions all throughout the country, the company is the operator of the vast majority of Russia's energy grids. Rosseti derives almost all of its revenue from electricity transmission and distribution service charges. This income stream is primarily determined by changes in Russian electricity consumption and tariffs determined by the Russian government. The electricity markets of Moscow, the Central Federal District, and the Volga region constitute a sizable amount of the company's total revenue. Rosetti is one of the largest electric grid companies in the world.

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