GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » NWF Group PLC (LSE:NWF) » Definitions » ROIC %

NWF Group (LSE:NWF) ROIC % : 12.89% (As of May. 2024)


View and export this data going back to 1995. Start your Free Trial

What is NWF Group 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 %. NWF Group's annualized return on invested capital (ROIC %) for the quarter that ended in May. 2024 was 12.89%.

As of today (2024-12-13), NWF Group's WACC % is 7.56%. NWF Group's ROIC % is 8.30% (calculated using TTM income statement data). NWF Group 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.


NWF Group ROIC % Historical Data

The historical data trend for NWF Group'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.

NWF Group ROIC % Chart

NWF Group Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.04 6.72 7.53 13.42 7.89

NWF Group Semi-Annual Data
Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24
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 24.80 8.92 18.14 3.90 12.89

Competitive Comparison of NWF Group's ROIC %

For the Oil & Gas Refining & Marketing subindustry, NWF Group'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.


NWF Group's ROIC % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, NWF Group's ROIC % distribution charts can be found below:

* The bar in red indicates where NWF Group's ROIC % falls into.



NWF Group ROIC % Calculation

NWF Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in May. 2024 is calculated as:

ROIC % (A: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: May. 2023 ) + Invested Capital (A: May. 2024 ))/ count )
=14.3 * ( 1 - 25.41% )/( (125.4 + 145.1)/ 2 )
=10.66637/135.25
=7.89 %

where

NWF Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in May. 2024 is calculated as:

ROIC % (Q: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2023 ) + Invested Capital (Q: May. 2024 ))/ count )
=22 * ( 1 - 23.81% )/( (114.9 + 145.1)/ 2 )
=16.7618/130
=12.89 %

where

Note: The Operating Income data used here is two times the semi-annual (May. 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.


NWF Group  (LSE:NWF) 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, NWF Group's WACC % is 7.56%. NWF Group's ROIC % is 8.30% (calculated using TTM income statement data). NWF Group 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. NWF Group 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.


NWF Group ROIC % Related Terms

Thank you for viewing the detailed overview of NWF Group's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


NWF Group Business Description

Traded in Other Exchanges
Address
Wardle, Nantwich, Cheshire, GBR, CW5 6BP
NWF Group PLC is engaged in manufacturing and selling of animal feeds, the sales and distribution of fuel oils and the warehousing and distribution of ambient groceries. The company's operating segments include Food, Feeds and Fuels. The Food segment is engaged in the warehousing and distribution of clients' ambient grocery and other products to supermarket and other retail distribution centers. The Feeds segment manufactures and sells animal feeds and other agricultural products. The Fuels segment is engaged in the sale and distribution of domestic heating, industrial and road fuels. The company generates maximum revenue from Fuels segment. It operates entirely in the United Kingdom.

NWF Group Headlines

No Headlines