IRIG (Integrated Drilling Equipment Holdings) ROIC %: 28.96% (As of Dec. 2014)


What is Integrated Drilling Equipment Holdings ROIC %?

Integrated Drilling Equipment Holdings IRIG ROIC % is 28.96% as of Dec. 2014.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Integrated Drilling Equipment Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2014 was 28.96%.

As of today (2026-06-25), Integrated Drilling Equipment Holdings's WACC % is 0.00%. Integrated Drilling Equipment Holdings's ROIC % is 0.00% (calculated using TTM income statement data). Integrated Drilling Equipment Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Integrated Drilling Equipment Holdings  (OTCPK:IRIG) 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, Integrated Drilling Equipment Holdings's WACC % is 0.00%. Integrated Drilling Equipment Holdings's ROIC % is 0.00% (calculated using TTM income statement data). Integrated Drilling Equipment Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

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.

Integrated Drilling Equipment Holdings ROIC % Related Terms

Integrated Drilling Equipment Holdings ROIC % Historical Data

* Premium members only.

The historical data trend for Integrated Drilling Equipment Holdings'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.

Integrated Drilling Equipment Holdings ROIC % Chart

Integrated Drilling Equipment Holdings Annual Data
Trend Dec11 Dec12 Dec13 Dec14
ROIC %
6.97 1.25 7.01 11.64

Integrated Drilling Equipment Holdings Quarterly Data
Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14
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 15.83 24.89 -17.04 2.29 28.96

IRIG vs ESES, TIRTZ, GLFH: ROIC % Comparison

For the Oil & Gas Equipment & Services subindustry, Integrated Drilling Equipment Holdings'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.

Integrated Drilling Equipment Holdings ROIC % vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Integrated Drilling Equipment Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Integrated Drilling Equipment Holdings's ROIC % falls into.


Integrated Drilling Equipment Holdings ROIC % Calculation

Integrated Drilling Equipment Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2014 is calculated as:

ROIC % (A: Dec. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2013 ) + Invested Capital (A: Dec. 2014 ))/ count )
=4.537 * ( 1 - 0% )/( (26.007 + 51.976)/ 2 )
=4.537/38.9915
=11.64 %

where

Invested Capital(A: Dec. 2013 )
=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))
=29.443 - 23.136 - ( 0.981 - max(0, 42.051 - 22.351+0.981))
=26.007

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))
=34.491 - 21.626 - ( 1.263 - max(0, 69.422 - 30.311+1.263))
=51.976

Integrated Drilling Equipment Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2014 is calculated as:

ROIC % (Q: Dec. 2014 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2014 ) + Invested Capital (Q: Dec. 2014 ))/ count )
=14.592 * ( 1 - 0% )/( (48.807 + 51.976)/ 2 )
=14.592/50.3915
=28.96 %

where

Invested Capital(Q: Sep. 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))
=31.248 - 20.431 - ( 3.782 - max(0, 64.163 - 26.173+3.782))
=48.807

Invested Capital(Q: 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))
=34.491 - 21.626 - ( 1.263 - max(0, 69.422 - 30.311+1.263))
=51.976

Note: The Operating Income data used here is four times the quarterly (Dec. 2014) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of 28.96% mean?
Integrated Drilling Equipment Holdings (IRIG) has a ROIC % of 28.96% as of Dec. 2014. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Integrated Drilling Equipment Holdings and its competitors.
Is Integrated Drilling Equipment Holdings' ROIC % too high?
Integrated Drilling Equipment Holdings' current ROIC % is 28.96%. The Oil & Gas industry median ROIC % is 3.63. Integrated Drilling Equipment Holdings' value of 28.96% is 698.9% above this industry median.
How does Integrated Drilling Equipment Holdings' ROIC % compare to ESES and TIRTZ?
Integrated Drilling Equipment Holdings' ROIC % of 28.96% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.63. Integrated Drilling Equipment Holdings' value of 28.96% is 698.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.63, based on 998 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Integrated Drilling Equipment Holdings's current ROIC % of 28.96% is 698.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Integrated Drilling Equipment Holdings and its competitors. For the Oil & Gas industry, the median ROIC % is 3.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Integrated Drilling Equipment Holdings's current ROIC % is 28.96%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Integrated Drilling Equipment Holdings stock overvalued right now?
Integrated Drilling Equipment Holdings (IRIG) has a current ROIC % of 28.96%. The current ROIC % is 28.96% and 698.9% above the Oil & Gas industry median of 3.63. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Integrated Drilling Equipment Holdings (IRIG), the current ROIC % is 28.96% as of Dec. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Integrated Drilling Equipment Holdings Business Description

Industry EnergyOil & Gas
Address 25311 I-45 North, Woodpark Business Center, Spring, TX, USA, 77380
Integrated Drilling Equipment Holdings Corp provides products and services to customers in the oil and gas industry both domestically and internationally. It operates in two segments: Electrical Products & Services and Drilling Products & Services.