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Kelso Technologies (TSX:KLS) ROC % : -18.49% (As of Sep. 2024)


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What is Kelso Technologies 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 %. Kelso Technologies's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -18.49%.

As of today (2024-12-11), Kelso Technologies's WACC % is 1.11%. Kelso Technologies's ROC % is -20.59% (calculated using TTM income statement data). Kelso Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Kelso Technologies ROC % Historical Data

The historical data trend for Kelso Technologies'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.

Kelso Technologies ROC % Chart

Kelso Technologies Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 46.40 -13.63 -34.65 -15.67 -18.48

Kelso Technologies Quarterly Data
Dec19 Mar20 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.91 -3.77 -35.79 -23.28 -18.49

Kelso Technologies ROC % Calculation

Kelso Technologies'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 )
=-1.783 * ( 1 - -8.8% )/( (11.167 + 9.829)/ 2 )
=-1.939904/10.498
=-18.48 %

where

Kelso Technologies'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 )
=-1.816 * ( 1 - 0% )/( (10.286 + 9.352)/ 2 )
=-1.816/9.819
=-18.49 %

where

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

* 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.


Kelso Technologies  (TSX:KLS) 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, Kelso Technologies's WACC % is 1.11%. Kelso Technologies's ROC % is -20.59% (calculated using TTM income statement data). Kelso Technologies 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.


Kelso Technologies ROC % Related Terms

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Kelso Technologies Business Description

Traded in Other Exchanges
Address
13966, 18B Avenue, Surrey, BC, CAN, V4A 8J1
Kelso Technologies Inc is a railway equipment supplier that produces and sells tank car service equipment used for the safe loading, unloading, and containment of hazardous materials during transport. The firm designs, engineers, markets, produces, and distributes various pressure relief valves and manway securement systems designed to reduce the risk of environmental harm due to non-accidental events in the transportation of hazardous commodities via railroad tank cars.
Executives
Frank Busch Director
Jesse Van Crews Director
Richard Manning Lee Senior Officer
Kathy Love Senior Officer
James Richard Bond Director, Senior Officer
Anthony Andrukaitis Director, Senior Officer
Edward Paul Cass Director

Kelso Technologies Headlines

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