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NFI Group (TSX:NFI) ROC % : 6.36% (As of Dec. 2024)


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What is NFI Group 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 %. NFI Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 6.36%.

As of today (2025-03-20), NFI Group's WACC % is 5.43%. NFI Group's ROC % is 2.18% (calculated using TTM income statement data). NFI Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.


NFI Group ROC % Historical Data

The historical data trend for NFI Group'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.

NFI Group ROC % Chart

NFI Group Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.41 4.22 -8.04 -0.94 2.67

NFI Group Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 0.72 1.39 3.78 4.83 6.36

NFI Group ROC % Calculation

NFI Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=157.181 * ( 1 - 49.01% )/( (2821.008 + 3180.499)/ 2 )
=80.1465919/3000.7535
=2.67 %

where

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))
=3622.266 - 734.695 - ( 66.563 - max(0, 987.418 - 1776.079+66.563))
=2821.008

Invested Capital(A: Dec. 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))
=4151.764 - 900.661 - ( 70.604 - max(0, 1344.259 - 2184.322+70.604))
=3180.499

NFI Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

ROC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=200.848 * ( 1 - 1.51% )/( (3044.107 + 3180.499)/ 2 )
=197.8151952/3112.303
=6.36 %

where

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))
=3940.269 - 815.265 - ( 80.897 - max(0, 1198.569 - 2048.995+80.897))
=3044.107

Invested Capital(Q: Dec. 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))
=4151.764 - 900.661 - ( 70.604 - max(0, 1344.259 - 2184.322+70.604))
=3180.499

Note: The Operating Income data used here is four times the quarterly (Dec. 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.


NFI Group  (TSX:NFI) 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, NFI Group's WACC % is 5.43%. NFI Group's ROC % is 2.18% (calculated using TTM income statement data). NFI Group 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.


NFI Group ROC % Related Terms

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NFI Group Business Description

Traded in Other Exchanges
Address
711 Kernaghan Avenue, Winnipeg, MB, CAN, R2C 3T4
NFI Group Inc is a bus manufacturer providing a comprehensive suite of mass transportation solutions under brands: New Flyer(heavy-duty transit buses), Alexander Dennis Limited (ADL) (single and double-deck buses), Plaxton (motor coaches), MCI (motor coaches), ARBOC Specialty Vehicles, LLC (ARBOC) (low-floor cutaway and medium-duty buses) and NFI Parts (aftermarket parts sales). The Company has two reportable segments which are the Company's strategic business units: Manufacturing Operations and Aftermarket Operations. It generates majority revenue from Manufacturing Operations. Geographically, the company generates majority of its revenue from North America and rest from United Kingdom, Europe and Asia Pacific region.
Executives
Jannet Walker-ford Director
Jason Michael Pellaers Senior Officer
Brian Keith Dewsnup Senior Officer
Phyllis Elaine Cochran Director
Richard Paul Davies Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Wendy Wai Ting Kei Director
Steven Allan Young Senior Officer
Michael Gavin Stewart Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Katherine S. Winter Director
Colin Robertson Director
Stephen King Senior Officer
Paul Soubry Senior Officer
Pipasu Harish Soni Senior Officer
Adam L. Gray Director
Brian Vincent Tobin Director

NFI Group Headlines

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