Dayton Power & Light Co (Dayton Power & Light Co) ROIC % : -68.92% (As of Jun. 2016)

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What is Dayton Power & Light 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 %. Dayton Power & Light Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2016 was -68.92%.

As of today (2024-06-20), Dayton Power & Light Co's WACC % is 0.00%. Dayton Power & Light Co's ROIC % is 0.00% (calculated using TTM income statement data). Dayton Power & Light Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Dayton Power & Light Co ROIC % Historical Data

The historical data trend for Dayton Power & Light 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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Dayton Power & Light Co ROIC % Chart

Dayton Power & Light Co Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROIC %

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6.33

3.28

-2.49

5.63

-3.47

Dayton Power & Light 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															3.89	3.29	-27.07	4.30	-68.92

Competitive Comparison of Dayton Power & Light Co's ROIC %

For the Utilities - Regulated Electric subindustry, Dayton Power & Light 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.

Dayton Power & Light Co's ROIC % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Dayton Power & Light Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Dayton Power & Light Co's ROIC % falls into.

Dayton Power & Light Co ROIC % Calculation

Dayton Power & Light 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 )
=	-109.9 * ( 1 - -8.64% )	/	( (3336.6	+	3538.3)	/ 2 )
=	-119.39536	/	3437.45
=	-3.47 %

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	))
=	3577.8	-	224.2	-	( 17	-	max(0, 332.9	-	498.7	+	17	))
=	3336.6

	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	))
=	3359.6	-	184.4	-	( 5.4	-	max(0, 780.7	-	417.6	+	5.4	))
=	3538.3

Dayton Power & Light 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 )
=	-3320.4 * ( 1 - 36.36% )	/	( (3496.2	+	2636.2)	/ 2 )
=	-2113.10256	/	3066.2
=	-68.92 %

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	))
=	3318.1	-	179.4	-	( 24.8	-	max(0, 731.2	-	373.7	+	24.8	))
=	3496.2

	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	))
=	2442	-	165.6	-	( 45.4	-	max(0, 719.3	-	359.5	+	45.4	))
=	2636.2

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

Dayton Power & Light Co (OTCPK:DAYTP.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, Dayton Power & Light Co's WACC % is 0.00%. Dayton Power & Light 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.

Dayton Power & Light Co ROIC % Related Terms

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Dayton Power & Light Co (Dayton Power & Light Co) Business Description

Industry

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Address

Website

http://www.dpandl.com

Dayton Power & Light Co an Ohio corporation is a public utility incorporated in 1911. The Company sells electricity to residential, commercial, industrial and governmental customers in a 6,000 square mile area of West Central Ohio. Electricity for the Company's 24 county service area is generated at eight coal-fired power plants and is distributed to more than 513,000 retail customers. Principal industries served include automotive, food processing, paper, plastic, manufacturing and defense. It sells any excess energy and capacity into the wholesale market. It also sells electricity to DPLER, an affiliate, to satisfy the electric requirements of its retail customers. The Company's electric transmission and distribution businesses are subject to rate regulation by federal and state regulators while its generation business is not subject to such regulation.

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