Oil and Gas Exploration and Production AD (LTS:0OMR) ROIC % : 7.20% (As of Dec. 2022)

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What is Oil and Gas Exploration and Production AD 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 %. Oil and Gas Exploration and Production AD's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2022 was 7.20%.

As of today (2024-05-21), Oil and Gas Exploration and Production AD's WACC % is 10.92%. Oil and Gas Exploration and Production AD's ROIC % is 7.20% (calculated using TTM income statement data). Oil and Gas Exploration and Production AD earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Oil and Gas Exploration and Production AD ROIC % Historical Data

The historical data trend for Oil and Gas Exploration and Production AD'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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Oil and Gas Exploration and Production AD ROIC % Chart

Oil and Gas Exploration and Production AD Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROIC %

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4.24

5.75

-3.10

3.38

7.20

Oil and Gas Exploration and Production AD Semi-Annual Data
	Dec09	Dec10	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec18	Dec19	Dec20	Dec21	Dec22
ROIC %	Get a 7-Day Free Trial									4.24	5.75	-3.10	3.38	7.20

Competitive Comparison of Oil and Gas Exploration and Production AD's ROIC %

For the Oil & Gas E&P subindustry, Oil and Gas Exploration and Production AD'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.

Oil and Gas Exploration and Production AD's ROIC % Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Oil and Gas Exploration and Production AD's ROIC % falls into.

Oil and Gas Exploration and Production AD ROIC % Calculation

Oil and Gas Exploration and Production AD's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROIC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	5.98 * ( 1 - 12.69% )	/	( (73.31	+	71.692)	/ 2 )
=	5.221138	/	72.501
=	7.20 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	114.018	-	18.863	-	( 21.845	-	max(0, 22.76	-	65.438	+	21.845	))
=	73.31

	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	))
=	116.645	-	19.168	-	( 25.785	-	max(0, 23.002	-	71.07	+	25.785	))
=	71.692

Oil and Gas Exploration and Production AD's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2022 is calculated as:

	ROIC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2021 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	5.98 * ( 1 - 12.69% )	/	( (73.31	+	71.692)	/ 2 )
=	5.221138	/	72.501
=	7.20 %

where

	Invested Capital		(Q: Dec. 2021 )
=	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	))
=	114.018	-	18.863	-	( 21.845	-	max(0, 22.76	-	65.438	+	21.845	))
=	73.31

	Invested Capital		(Q: 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	))
=	116.645	-	19.168	-	( 25.785	-	max(0, 23.002	-	71.07	+	25.785	))
=	71.692

Note: The Operating Income data used here is one times the annual (Dec. 2022) data.

Oil and Gas Exploration and Production AD (LTS:0OMR) 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, Oil and Gas Exploration and Production AD's WACC % is 10.92%. Oil and Gas Exploration and Production AD's ROIC % is 7.20% (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.

Oil and Gas Exploration and Production AD ROIC % Related Terms

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Oil and Gas Exploration and Production AD (LTS:0OMR) Business Description

Industry

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NGAZ:Bulgaria

Address

2, Stefan Karadja Street, Sofia, BGR, 1080

Website

http://www.ogep-bg.com

Oil and Gas Exploration and Production AD is engaged in prospecting, exploration, development and exploitation of oil and gas fields, as well as processing of crude oil. Some of the services provided by the company - design and conducting of 2D and 3D seismic data acquisition, geological and geophysical data processing and interpretation, mud logging, drilling of exploration and production wells for mineralized water and geothermal energy, well logging, among others.

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