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CWST (Casella Waste Systems) ROIC % : 3.64% (As of Sep. 2024)


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What is Casella Waste Systems 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 %. Casella Waste Systems's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 3.64%.

As of today (2024-12-14), Casella Waste Systems's WACC % is 8.62%. Casella Waste Systems's ROIC % is 1.87% (calculated using TTM income statement data). Casella Waste Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Casella Waste Systems ROIC % Historical Data

The historical data trend for Casella Waste Systems'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.

* Premium members only.

Casella Waste Systems ROIC % Chart

Casella Waste Systems Annual Data
Trend Apr14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.88 17.26 5.52 5.94 4.06

Casella Waste Systems Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % 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 5.65 -6.06 1.52 3.65 3.64

Competitive Comparison of Casella Waste Systems's ROIC %

For the Waste Management subindustry, Casella Waste Systems'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.


Casella Waste Systems's ROIC % Distribution in the Waste Management Industry

For the Waste Management industry and Industrials sector, Casella Waste Systems's ROIC % distribution charts can be found below:

* The bar in red indicates where Casella Waste Systems's ROIC % falls into.



Casella Waste Systems ROIC % Calculation

Casella Waste Systems's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=102.082 * ( 1 - 31.44% )/( (1261.446 + 2185.437)/ 2 )
=69.9874192/1723.4415
=4.06 %

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))
=1449.215 - 157.89 - ( 71.152 - max(0, 177.6 - 207.479+71.152))
=1261.446

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))
=2535.47 - 202.566 - ( 220.912 - max(0, 278.858 - 426.325+220.912))
=2185.437

Casella Waste Systems's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=153.308 * ( 1 - 44.63% )/( (2190.912 + 2476.836)/ 2 )
=84.8866396/2333.874
=3.64 %

where

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))
=2511.865 - 164.837 - ( 208.502 - max(0, 269.688 - 425.804+208.502))
=2190.912

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))
=3123.229 - 194.596 - ( 518.977 - max(0, 291.254 - 743.051+518.977))
=2476.836

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.


Casella Waste Systems  (NAS:CWST) 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, Casella Waste Systems's WACC % is 8.62%. Casella Waste Systems's ROIC % is 1.87% (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.


Casella Waste Systems ROIC % Related Terms

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Casella Waste Systems Business Description

Traded in Other Exchanges
Address
25 Greens Hill Lane, Rutland, VT, USA, 05701
Casella Waste Systems Inc is a solid waste removal company, providing resource management services to residential, commercial, municipal, and industrial customers. The company's reportable segments on Geographical basis include Eastern, Western and Mid-Atlantic regions through the Resource solution segment. It generates maximum revenue from the Western region segment. The company services include Recycling, Collection, Organics, Energy, Landfills, Special Waste as well as Professional Services.
Executives
Michael K Burke director C/O LANDAUER, INC., 2 SCIENCE ROAD, GLENWOOD IL 60425
Douglas R Casella director, officer: VICE CHAIRMAN, BD OF DIRECTORS CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LN, RUTLAND VT 05701
John W Casella director, officer: CHIEF EXECUTIVE OFFICER CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LN, RUTLAND VT 05701
Sean Steves officer: Sr VP & COO of SW Ops C/O CASELLA WASTE SYSTEMS, INC., 25 GREENS HILL LANE, RUTLAND VT 05701
Bradford John Helgeson officer: Executive VP and CFO 30 ESSEX PLACE, BASKING RIDGE NJ 07920
Emily Nagle Green director CASELLA WASTE SYSTEMS, 25 GREENS HILL LANE, RUTLAND VT 05701
Paul Ligon officer: SR VP & CHIEF REVENUE OFFICER C/O CASELLA WASTE SYSTEMS, INC., 25 GREENS HILL LANE, RUTLAND VT 05701
William P Hulligan director 25 GREENS HILL LANE, RUTLAND VT 05701
Edmond Coletta officer: PRESIDENT & CFO CASELLA WASTE SYSTEMS, INC., 25 GREENS HILL LANE, RUTLAND VT 05701
Kevin Drohan officer: VP & CHIEF ACCOUNTING OFFICER C/O CASELLA WASTE SYSTEMS, INC., 25 GREENS HILL LANE, RUTLAND VT 05701
Shelley E. Sayward officer: SENIOR VP & GENERAL COUNSEL C/O CASELLA WASTE SYSTEMS, INC., 25 GREENS HILL LANE, RUTLAND VT 05701
Michael Louis Battles director 45 WILLIAM STREET, WELLESLEY MA 02481
Rose M. Kirk director C/O CASELLA WASTE SYSTEMS, INC., 25 GREENS HILL LANE, RUTLAND VT 05701
Joseph Doody director CASELLA WASTE SYSTEMS INC, 25 GREENS HILL LANE PO BOX 866, RUTLAND VT 05701
Gary Sova director CASELLA WASTE SYSTEMS, INC., 25 GREENS HILL LANE, RUTLAND VT 05701