Green Impact Partners (STU:04B) ROC % : -5.06% (As of Sep. 2024)

View and export this data going back to 2021. Start your Free Trial

What is Green Impact Partners 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 %. Green Impact Partners's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -5.06%.

As of today (2024-12-14), Green Impact Partners's WACC % is 7.35%. Green Impact Partners's ROC % is -5.85% (calculated using TTM income statement data). Green Impact Partners earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Green Impact Partners ROC % Historical Data

The historical data trend for Green Impact Partners'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.

Green Impact Partners ROC % Chart

Green Impact Partners Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROC %

-1.49

-0.26

-3.99

-1.84

Green Impact Partners Quarterly Data
	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													-4.28	-6.76	-7.13	-4.29	-5.06

Green Impact Partners ROC % Calculation

Green Impact Partners'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 )
=	-7.022 * ( 1 - 65.15% )	/	( (145.967	+	120.506)	/ 2 )
=	-2.447167	/	133.2365
=	-1.84 %

where

	Invested Capital		(A: Dec. 2022 )
=	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	))
=	157.723	-	14.614	-	( 2.169	-	max(0, 20.746	-	17.888	+	2.169	))
=	145.967

	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	))
=	128.85	-	13.133	-	( 1.104	-	max(0, 19.183	-	14.394	+	1.104	))
=	120.506

Green Impact Partners'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 )
=	-5.572 * ( 1 - -6.01% )	/	( (110.556	+	122.69)	/ 2 )
=	-5.9068772	/	116.623
=	-5.06 %

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	))
=	124.405	-	12.816	-	( 9.213	-	max(0, 21.41	-	22.443	+	9.213	))
=	110.556

	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	))
=	112.229	-	9.48	-	( 1.441	-	max(0, 33.556	-	13.615	+	1.441	))
=	122.69

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

Green Impact Partners (STU:04B) 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, Green Impact Partners's WACC % is 7.35%. Green Impact Partners's ROC % is -5.85% (calculated using TTM income statement data). Green Impact Partners 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.

Green Impact Partners ROC % Related Terms

Thank you for viewing the detailed overview of Green Impact Partners's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Green Impact Partners Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Green Impact Partners Inc (STU:04B) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

GIPIF:USA GIP:Canada

Address

2207 - 4th Street S.W., Suite 400, Calgary, AB, CAN, T2S 1X1

Website

https://www.greenipi.com

Green Impact Partners Inc is a clean energy company with an operating portfolio of water and solids treatment and recycling facilities in North America. The company also has a portfolio of renewable natural gas and clean energy development projects. Its services include water and solids recycling management, disposal services, and energy product optimization services. Its operating segments are Water & Solids Recycling & Energy Product Optimization and Clean Energy Production. Its core focus is that GIP has an infrastructure network located throughout western Canada and the United States that includes wastewater, hydrocarbon processing, disposal facilities, industrial landfill, recycling facilities, oil and water gathering pipelines, and oil terminals.

Green Impact Partners Headlines

No Headlines