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Trican Well Service (TSX:TCW) ROC % : 18.45% (As of Sep. 2024)


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What is Trican Well Service 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 %. Trican Well Service's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 18.45%.

As of today (2024-12-13), Trican Well Service's WACC % is 7.31%. Trican Well Service's ROC % is 21.18% (calculated using TTM income statement data). Trican Well Service 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.


Trican Well Service ROC % Historical Data

The historical data trend for Trican Well Service'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.

Trican Well Service ROC % Chart

Trican Well Service 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 -6.05 -8.60 3.02 16.36 24.11

Trican Well Service 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 29.17 23.20 31.43 12.08 18.45

Trican Well Service ROC % Calculation

Trican Well Service'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 )
=161.771 * ( 1 - 23.88% )/( (528.305 + 493.35)/ 2 )
=123.1400852/510.8275
=24.11 %

where

Trican Well Service'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 )
=131.98 * ( 1 - 24.27% )/( (532.39 + 551.232)/ 2 )
=99.948454/541.811
=18.45 %

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.


Trican Well Service  (TSX:TCW) 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, Trican Well Service's WACC % is 7.31%. Trican Well Service's ROC % is 21.18% (calculated using TTM income statement data). Trican Well Service 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.


Trican Well Service ROC % Related Terms

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Trican Well Service Business Description

Traded in Other Exchanges
Address
645 - 7th Avenue South West, Suite 2900, Calgary, AB, CAN, T2P 4G8
Trican Well Service Ltd is an equipment services company. It provides products, equipment, services, and technology for use in the drilling, completion, stimulation, and reworking of oil and gas wells primarily through its continuing pressure pumping operations in Canada. The company offers services related to coiled tubing, pipeline service, cementing, fracturing and reservoir solutions. The company offers these services to customers in Canada from operating bases located across the Western Canadian Sedimentary Basin (WCSB).
Executives
Daniel Adam Lopushinsky Senior Officer
Kathleen Janet Mccrum Senior Officer
Chika Benjamin Onwuekwe Senior Officer
Scott Eric Matson Senior Officer
James Charles Rukin Senior Officer
Brian James Lane Senior Officer
Trevor Alan Funk Senior Officer
Michael Joseph Mcnulty Director
Thomas Malcolm Alford Director
Dawn Amanda Sweany Senior Officer
William Harold Anderson Senior Officer
Deborah Susan Stein Director
Clarke Inc. 10% Security Holder
Michael Rapps Director
Sime Armoyan 10% Security Holder

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