Baltimore Gas & Electric Co (Baltimore Gas & Electric Co) ROIC % : 2.41% (As of Jun. 2016)

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What is Baltimore Gas & Electric Co ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Baltimore Gas & Electric Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2016 was 2.41%.

As of today (2024-05-04), Baltimore Gas & Electric Co's WACC % is 0.00%. Baltimore Gas & Electric Co's ROIC % is 0.00% (calculated using TTM income statement data). Baltimore Gas & Electric Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Baltimore Gas & Electric Co ROIC % Historical Data

The historical data trend for Baltimore Gas & Electric Co's ROIC % 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.

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Baltimore Gas & Electric Co ROIC % Chart

Baltimore Gas & Electric Co Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROIC %

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3.14

3.95

3.78

3.52

4.27

Baltimore Gas & Electric Co Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
ROIC %	Get a 7-Day Free Trial															3.08	3.48	4.47	5.49	2.41

Competitive Comparison of Baltimore Gas & Electric Co's ROIC %

For the Utilities - Regulated Electric subindustry, Baltimore Gas & Electric Co's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Baltimore Gas & Electric Co's ROIC % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Baltimore Gas & Electric Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Baltimore Gas & Electric Co's ROIC % falls into.

Baltimore Gas & Electric Co ROIC % Calculation

Baltimore Gas & Electric Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROIC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	558 * ( 1 - 39.62% )	/	( (7580	+	8213)	/ 2 )
=	336.9204	/	7896.5
=	4.27 %

where

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	8056	-	412	-	( 64	-	max(0, 794	-	951	+	64	))
=	7580

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	8295	-	371	-	( 9	-	max(0, 1134	-	845	+	9	))
=	8213

Baltimore Gas & Electric Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2016 is calculated as:

	ROIC % (Q: Jun. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2016 )	+	Invested Capital (Q: Jun. 2016 ))	/ count )
=	236 * ( 1 - 15% )	/	( (8264	+	8395)	/ 2 )
=	200.6	/	8329.5
=	2.41 %

where

	Invested Capital		(Q: Mar. 2016 )
=	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	))
=	8361	-	416	-	( 5	-	max(0, 1138	-	819	+	5	))
=	8264

	Invested Capital		(Q: Jun. 2016 )
=	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	))
=	8325	-	381	-	( 5	-	max(0, 1165	-	714	+	5	))
=	8395

Note: The Operating Income data used here is four times the quarterly (Jun. 2016) data.

Baltimore Gas & Electric Co (OTCPK:BGLEH.PFD) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Baltimore Gas & Electric Co's WACC % is 0.00%. Baltimore Gas & Electric Co's ROIC % is 0.00% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

Baltimore Gas & Electric Co ROIC % Related Terms

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Baltimore Gas & Electric Co (Baltimore Gas & Electric Co) Business Description

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GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Baltimore Gas & Electric Co (OTCPK:BGLEH.PFD) » Definitions » ROIC %

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Baltimore Gas and Electric Company is a Maryland Corporation. It is an electric transmission and distribution utility company and a gas distribution utility company with a service territory that covers the City of Baltimore and all or part of ten counties in central Maryland. It is regulated by the Maryland PSC and Federal Energy Regulatory Commission (FERC) with respect to rates and other aspects of its business. The Company's electric service territory includes an area of approximately 2,300 square miles. There are no municipal or cooperative wholesale customers within BGE's service territory. The Company's gas service territory includes an area of approximately 800 square miles. The Company's electric and gas revenues come from many customers -residential, commercial, and industrial.

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