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Integrated Wind Solutions ASA (OSL:IWS) ROIC % : 7.44% (As of Dec. 2024)


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What is Integrated Wind Solutions ASA 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 %. Integrated Wind Solutions ASA's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 7.44%.

As of today (2025-03-17), Integrated Wind Solutions ASA's WACC % is 2.30%. Integrated Wind Solutions ASA's ROIC % is 2.48% (calculated using TTM income statement data). Integrated Wind Solutions ASA 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.


Integrated Wind Solutions ASA ROIC % Historical Data

The historical data trend for Integrated Wind Solutions ASA'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.

Integrated Wind Solutions ASA ROIC % Chart

Integrated Wind Solutions ASA Annual Data
Trend Dec20 Dec21 Dec22 Dec23 Dec24
ROIC %
-210.00 -8.85 -5.12 -4.12 2.29

Integrated Wind Solutions ASA Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -2.00 -8.96 1.93 5.15 7.44

Competitive Comparison of Integrated Wind Solutions ASA's ROIC %

For the Specialty Industrial Machinery subindustry, Integrated Wind Solutions ASA'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.


Integrated Wind Solutions ASA's ROIC % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, Integrated Wind Solutions ASA's ROIC % distribution charts can be found below:

* The bar in red indicates where Integrated Wind Solutions ASA's ROIC % falls into.



Integrated Wind Solutions ASA ROIC % Calculation

Integrated Wind Solutions ASA's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2024 is calculated as:

ROIC % (A: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2023 ) + Invested Capital (A: Dec. 2024 ))/ count )
=61.342 * ( 1 - 11.76% )/( (1468.126 + 3263.432)/ 2 )
=54.1281808/2365.779
=2.29 %

where

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))
=1842.406 - 19.431 - ( 354.849 - max(0, 118.011 - 487.608+354.849))
=1468.126

Invested Capital(A: Dec. 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))
=3728.286 - 103.11 - ( 379.449 - max(0, 330.984 - 692.728+379.449))
=3263.432

Integrated Wind Solutions ASA's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2024 is calculated as:

ROIC % (Q: Dec. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2024 ) + Invested Capital (Q: Dec. 2024 ))/ count )
=241.656 * ( 1 - 10.13% )/( (2572.662 + 3263.432)/ 2 )
=217.1762472/2918.047
=7.44 %

where

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))
=3359.335 - 108.69 - ( 699.748 - max(0, 306.358 - 984.341+699.748))
=2572.662

Invested Capital(Q: Dec. 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))
=3728.286 - 103.11 - ( 379.449 - max(0, 330.984 - 692.728+379.449))
=3263.432

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


Integrated Wind Solutions ASA  (OSL:IWS) 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, Integrated Wind Solutions ASA's WACC % is 2.30%. Integrated Wind Solutions ASA's ROIC % is 2.48% (calculated using TTM income statement data). Integrated Wind Solutions ASA 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. Integrated Wind Solutions ASA 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.


Integrated Wind Solutions ASA ROIC % Related Terms

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Integrated Wind Solutions ASA Business Description

Traded in Other Exchanges
Address
Stoperigata 2, Aker Brygge, Oslo, NOR, 0250
Integrated Wind Solutions ASA is an integrated provider of offshore wind services by integrating construction and service operation vessels (CSOVs) with engineering products and manpower services in a wind farm's installation, commissioning, and operations phase.

Integrated Wind Solutions ASA Headlines

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