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Transcorp Power (NSA:TRANSPOWER) ROIC % : 55.50% (As of Sep. 2024)


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What is Transcorp Power 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 %. Transcorp Power's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 55.50%.

As of today (2025-03-04), Transcorp Power's WACC % is 10.30%. Transcorp Power's ROIC % is 40.45% (calculated using TTM income statement data). Transcorp Power 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.


Transcorp Power ROIC % Historical Data

The historical data trend for Transcorp Power'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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Transcorp Power ROIC % Chart

Transcorp Power Annual Data
Trend
ROIC %

Transcorp Power Quarterly Data
Mar23 Jun23 Sep23 Mar24 Jun24 Sep24
ROIC % Get a 7-Day Free Trial - - 67.12 46.39 55.50

Competitive Comparison of Transcorp Power's ROIC %

For the Utilities - Regulated Electric subindustry, Transcorp Power'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.


Transcorp Power's ROIC % Distribution in the Utilities - Regulated Industry

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

* The bar in red indicates where Transcorp Power's ROIC % falls into.



Transcorp Power ROIC % Calculation

Transcorp Power's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in . 20 is calculated as:

ROIC % (A: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: . 20 ) + Invested Capital (A: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Transcorp Power's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=122752.936 * ( 1 - 32% )/( (139963.008 + 160834.902)/ 2 )
=83471.99648/150398.955
=55.50 %

where

Invested Capital(Q: Jun. 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))
=322984.664 - 158650.585 - ( 24371.071 - max(0, 186635.99 - 253119.963+24371.071))
=139963.008

Invested Capital(Q: Sep. 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))
=362502.392 - 164694.583 - ( 36972.907 - max(0, 215109.144 - 293077.587+36972.907))
=160834.902

Note: The Operating Income data used here is four times the quarterly (Sep. 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.


Transcorp Power  (NSA:TRANSPOWER) 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, Transcorp Power's WACC % is 10.30%. Transcorp Power's ROIC % is 40.45% (calculated using TTM income statement data). Transcorp Power 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. Transcorp Power 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.


Transcorp Power ROIC % Related Terms

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Transcorp Power Business Description

Traded in Other Exchanges
N/A
Address
Kilometer 12 warri patani road, Delta State, Ughelli, NGA
Transcorp Power PLC is engaged in power sector in Nigeria. It is a gas-fired open cycle thermal power plant located in Ughelli. It is fossil-fuel-based power-generating station in the country. The plant has an installed capacity of 972 MW and can generate 2,500 GWh of electricity annually. Transcorp power plant uses natural gas supplied by Nigeria, Nigeria Gas Infrastructure Company (NGIC) as the primary fuel for power generation. The Company has two operating segments: International - this segment is responsible for the sale of electric power to customers outside Nigeria and Local - this segment is responsible for the sale of electric power to customers within Nigeria. Key revenue is generated from Local sales.

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