MOL Hungarian Oil and Gas (MOL Hungarian Oil and Gas) ROIC % : 7.03% (As of Mar. 2024)

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What is MOL Hungarian Oil and Gas 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 %. MOL Hungarian Oil and Gas's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 7.03%.

As of today (2024-05-21), MOL Hungarian Oil and Gas's WACC % is 10.38%. MOL Hungarian Oil and Gas's ROIC % is 9.71% (calculated using TTM income statement data). MOL Hungarian Oil and Gas earns returns that do not match up to its cost of capital. It will destroy value as it grows.

MOL Hungarian Oil and Gas ROIC % Historical Data

The historical data trend for MOL Hungarian Oil and Gas'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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MOL Hungarian Oil and Gas ROIC % Chart

MOL Hungarian Oil and Gas Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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6.98

0.90

11.74

14.62

9.36

MOL Hungarian Oil and Gas Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROIC %	Get a 7-Day Free Trial															9.52	9.98	14.52	7.92	7.03

Competitive Comparison of MOL Hungarian Oil and Gas's ROIC %

For the Oil & Gas Refining & Marketing subindustry, MOL Hungarian Oil and Gas'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.

MOL Hungarian Oil and Gas's ROIC % Distribution in the Oil & Gas Industry

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

* The bar in red indicates where MOL Hungarian Oil and Gas's ROIC % falls into.

MOL Hungarian Oil and Gas ROIC % Calculation

MOL Hungarian Oil and Gas'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 )
=	1914.935 * ( 1 - 17.86% )	/	( (16852.688	+	16768.51)	/ 2 )
=	1572.927609	/	16810.599
=	9.36 %

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	))
=	22444.354	-	4665.095	-	( 2027.66	-	max(0, 7133.259	-	8059.83	+	2027.66	))
=	16852.688

	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	))
=	21699.071	-	3669.7	-	( 1260.861	-	max(0, 5191.349	-	6874.426	+	1260.861	))
=	16768.51

MOL Hungarian Oil and Gas's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROIC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	1701.44 * ( 1 - 26.88% )	/	( (16768.51	+	18608.23)	/ 2 )
=	1244.092928	/	17688.37
=	7.03 %

where

	Invested Capital		(Q: 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	))
=	21699.071	-	3669.7	-	( 1260.861	-	max(0, 5191.349	-	6874.426	+	1260.861	))
=	16768.51

	Invested Capital		(Q: Mar. 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	))
=	22674.642	-	2752.872	-	( 1313.54	-	max(0, 5508.179	-	7293.034	+	1313.54	))
=	18608.23

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

MOL Hungarian Oil and Gas (OTCPK:MOLFF) 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, MOL Hungarian Oil and Gas's WACC % is 10.38%. MOL Hungarian Oil and Gas's ROIC % is 9.71% (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.

MOL Hungarian Oil and Gas ROIC % Related Terms

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MOL Hungarian Oil and Gas (MOL Hungarian Oil and Gas) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » MOL Hungarian Oil and Gas PLC (OTCPK:MOLFF) » Definitions » ROIC %

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MGYOY:USA MOL:Poland MOL:Hungary 0RUK:UK MOGG:Germany MOL:Czech Republic

Address

Dombovari ut 28, Budapest, HUN, H-1117

Website

https://www.molgroup.info

MOL Hungarian Oil and Gas PLC is a multinational integrated oil and gas company. The group has various segments which include Upstream, Downstream, Consumer services, Gas midstream, and Corporate and other. The Downstream segment derives the majority of the revenue which consists of different business activities that are part of an integrated value chain that turns crude oil into a range of refined products, which are moved and marketed for household, industrial, and transport use. Geographically its sales come from Hungary, Croatia, Slovakia, Italy, Czech Republic, Romania, Austria, Europe, and the Rest of the World.