Sustainable Power & Infrastructure Split (TSX:PWI) ROC % : 59.83% (As of Jun. 2024)

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

What is Sustainable Power & Infrastructure Split 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 %. Sustainable Power & Infrastructure Split's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 59.83%.

As of today (2024-12-15), Sustainable Power & Infrastructure Split's WACC % is 12.22%. Sustainable Power & Infrastructure Split's ROC % is 24.94% (calculated using TTM income statement data). Sustainable Power & Infrastructure Split generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Sustainable Power & Infrastructure Split ROC % Historical Data

The historical data trend for Sustainable Power & Infrastructure Split'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.

Sustainable Power & Infrastructure Split ROC % Chart

Sustainable Power & Infrastructure Split Annual Data

Trend

Dec21

Dec22

Dec23

ROC %

-3.81

-7.58

1.61

Sustainable Power & Infrastructure Split Semi-Annual Data
	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial			-2.49	-11.63	10.49	-7.73	59.83

Sustainable Power & Infrastructure Split ROC % Calculation

Sustainable Power & Infrastructure Split'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 )
=	0.604 * ( 1 - 2.83% )	/	( (37.488	+	35.493)	/ 2 )
=	0.5869068	/	36.4905
=	1.61 %

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	))
=	61.735	-	0.799	-	( 61.258	-	max(0, 38.287	-	61.735	+	61.258	))
=	37.488

	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	))
=	59.544	-	1.095	-	( 58.321	-	max(0, 36.588	-	59.544	+	58.321	))
=	35.493

Sustainable Power & Infrastructure Split's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	20.736 * ( 1 - 0.99% )	/	( (35.493	+	33.141)	/ 2 )
=	20.5307136	/	34.317
=	59.83 %

where

	Invested Capital		(Q: 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	))
=	59.544	-	1.095	-	( 58.321	-	max(0, 36.588	-	59.544	+	58.321	))
=	35.493

	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	))
=	62.405	-	0.898	-	( 61.334	-	max(0, 34.039	-	62.405	+	61.334	))
=	33.141

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) data.

Sustainable Power & Infrastructure Split (TSX:PWI) 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, Sustainable Power & Infrastructure Split's WACC % is 12.22%. Sustainable Power & Infrastructure Split's ROC % is 24.94% (calculated using TTM income statement data). Sustainable Power & Infrastructure Split generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Sustainable Power & Infrastructure Split ROC % Related Terms

Thank you for viewing the detailed overview of Sustainable Power & Infrastructure Split's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Sustainable Power & Infrastructure Split Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Sustainable Power & Infrastructure Split Corp (TSX:PWI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

9QE:Germany

Address

181 Bay Street, Suite 2930, P.O. Box 793, Bay Wellington Tower, Brookfield Place, Toronto, ON, CAN, M5J 2T3

Website

https://www.bromptongroup.com

Sustainable Power & Infrastructure Split Corp is a mutual fund corporation. The company's fund invests in a globally diversified and actively managed portfolio consisting of dividend-paying securities of power and infrastructure companies, whose assets, products, and services the Manager believes are facilitating the multi-decade transition toward decarbonization and environmental sustainability. The company's portfolio includes investments in companies operating in the areas of renewable power, green transportation, energy efficiency, and communications, among others.

Executives

Brompton Corp.

Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)

Sustainable Power & Infrastructure Split Headlines

No Headlines