US Ecology (STU:3ER) ROC % : -0.81% (As of Mar. 2022)

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

What is US Ecology 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 %. US Ecology's annualized return on capital (ROC %) for the quarter that ended in Mar. 2022 was -0.81%.

As of today (2024-05-21), US Ecology's WACC % is 6.43%. US Ecology's ROC % is -3.84% (calculated using TTM income statement data). US Ecology earns returns that do not match up to its cost of capital. It will destroy value as it grows.

US Ecology ROC % Historical Data

The historical data trend for US Ecology'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.

US Ecology ROC % Chart

US Ecology Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROC %

Get a 7-Day Free Trial

10.31

7.73

3.18

2.25

1.13

US Ecology Quarterly Data
	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22
ROC %	Get a 7-Day Free Trial															0.13	0.89	2.83	1.69	-0.81

US Ecology ROC % Calculation

US Ecology's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	29.511 * ( 1 - 47.17% )	/	( (1340.159	+	1408.792)	/ 2 )
=	15.5906613	/	1374.4755
=	1.13 %

where

	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	))
=	1505.315	-	104.453	-	( 60.703	-	max(0, 139.096	-	297.962	+	60.703	))
=	1340.159

	Invested Capital		(A: Dec. 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	))
=	1597.777	-	129.259	-	( 59.726	-	max(0, 165.437	-	322.333	+	59.726	))
=	1408.792

US Ecology's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2022 is calculated as:

	ROC % (Q: Mar. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2021 )	+	Invested Capital (Q: Mar. 2022 ))	/ count )
=	-14.248 * ( 1 - 18.25% )	/	( (1408.792	+	1458.859)	/ 2 )
=	-11.64774	/	1433.8255
=	-0.81 %

where

	Invested Capital		(Q: Dec. 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	))
=	1597.777	-	129.259	-	( 59.726	-	max(0, 165.437	-	322.333	+	59.726	))
=	1408.792

	Invested Capital		(Q: Mar. 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	))
=	1651.355	-	125.135	-	( 67.361	-	max(0, 168.142	-	327.236	+	67.361	))
=	1458.859

Note: The Operating Income data used here is four times the quarterly (Mar. 2022) data.

US Ecology (STU:3ER) 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, US Ecology's WACC % is 6.43%. US Ecology's ROC % is -3.84% (calculated using TTM income statement data). US Ecology 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.

US Ecology ROC % Related Terms

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

US Ecology (STU:3ER) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » US Ecology Inc (STU:3ER) » Definitions » ROC %

Comparable Companies

HKSE:01330 MEG TSX:SES XPAR:DBG TSE:5857 SHSE:600874 TSE:9793 LSE:BIFF XTAE:VRDS SHSE:688087

Traded in Other Exchanges

N/A

Address

101 S. Capitol Boulevard, Suite 1000, Boise, ID, USA, 83702

Website

http://www.usecology.com

US Ecology Inc operates as an environmental service provider to commercial and government entities. The company's operating segments include Waste Solutions, Field Services, and Energy Waste. Waste Solutions provides a broad range of specialty material management services including transportation, recycling, treatment and disposal of hazardous, non-hazardous and radioactive waste; Field Services, provides specialty field services and total waste management solutions to commercial and industrial facilities and to government entities, and Energy Waste provides energy-related services and waste disposal services predominately to upstream energy customers.

US Ecology (STU:3ER) Headlines

No Headlines