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Spire (SR) ROIC % : 0.88% (As of Jun. 2024)


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What is Spire 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 %. Spire's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 0.88%.

As of today (2024-10-31), Spire's WACC % is 5.63%. Spire's ROIC % is 3.54% (calculated using TTM income statement data). Spire earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Spire ROIC % Historical Data

The historical data trend for Spire'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.

Spire ROIC % Chart

Spire Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.36 3.71 4.03 3.36 3.44

Spire Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 0.36 -0.10 4.09 8.64 0.88

Competitive Comparison of Spire's ROIC %

For the Utilities - Regulated Gas subindustry, Spire'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.


Spire's ROIC % Distribution in the Utilities - Regulated Industry

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

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



Spire ROIC % Calculation

Spire's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Sep. 2023 is calculated as:

ROIC % (A: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2022 ) + Invested Capital (A: Sep. 2023 ))/ count )
=418.6 * ( 1 - 15.14% )/( (10087.6 + 10587.9)/ 2 )
=355.22396/10337.75
=3.44 %

where

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

ROIC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2024 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=122.8 * ( 1 - 19.75% )/( (11039.8 + 11257.4)/ 2 )
=98.547/11148.6
=0.88 %

where

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


Spire  (NYSE:SR) 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, Spire's WACC % is 5.63%. Spire's ROIC % is 3.54% (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.


Spire ROIC % Related Terms

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


Spire Business Description

Traded in Other Exchanges
Address
700 Market Street, Saint Louis, MO, USA, 63101
Spire Inc is a public utility holding company with three reportable business segments: Gas Utility , Gas Marketing and Midstream. The Gas Utility segment includes the regulated operations of Laclede Gas, Alabama Gas Corporation (Alagasco), and EnergySouth Inc. The Utilities businesses operations include the purchase, retail, distribution, and sale of natural gas in Missouri, Alabama, and Mississippi. The Gas Utility segment generates a majority of the company's revenue but is subject to seasonal fluctuations. The Gas Marketing segment includes Laclede Energy Resources, Inc, whose operations include the marketing of natural gas and related activities on a non-regulated basis and the Midstream segment includes transportation and storage of natural gas.
Executives
Paul D Koonce director P O BOX 26532, RICHMOND VA 23261
Maria V. Fogarty director 700 MARKET STREET, ST. LOUIS MO 63101
Adam W. Woodard officer: Treasurer 700 MARKET STREET, ST. LOUIS MO 63101
Joseph B. Hampton officer: President, AL & MS 700 MARKET STREET, ST. LOUIS MO 63101
Steven P Rasche officer: Executive Vice President 700 MARKET STREET, ST. LOUIS MO 63101
Stephen M Mills officer: Senior Vice President 700 MARKET STREET, ST. LOUIS MO 63101
Vincent J Ferrari director 12555 MANCHESTER ROAD, DES PERES MO 63131
Brenda D Newberry director 700 MARKET STREET, ST. LOUIS MO 63101
Carrie J Hightman director C/O NISOURCE INC., 801 E. 86TH AVENUE, MERRILLVILLE IN 46410
Stupp John P Jr director STUPP JOHN P JR, #18 ST. ANDREWS DR., ST LOUIS MO 63124
Scott B. Carter officer: SVP, COO of Distribution Ops 700 MARKET STREET, ST. LOUIS MO 63101
Stephen S Schwartz director 46897 BAYSIDE PARKWAY, FREMONT CA 94538
Rob L. Jones director 555 EAST AIRTEX DRIVE, HOUSTON TX 77073
Mark A Borer director
Edward L Glotzbach director C/O VISUAL NETWORKS INC, 2092 GAITHER ROAD, ROCKVILLE MD 20850