PRPI (Perpetual Industries) ROIC %: -13.33% (As of Dec. 2022)


What is Perpetual Industries ROIC %?

Perpetual Industries PRPI +0.03% ROIC % is -13.33% as of Dec. 2022.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Perpetual Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2022 was -13.33%.

As of today (2026-06-27), Perpetual Industries's WACC % is 0.00%. Perpetual Industries's ROIC % is 0.00% (calculated using TTM income statement data). Perpetual Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Perpetual Industries  (OTCPK:PRPI) 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, Perpetual Industries's WACC % is 0.00%. Perpetual Industries's ROIC % is 0.00% (calculated using TTM income statement data). Perpetual Industries 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.

Perpetual Industries ROIC % Related Terms

Perpetual Industries ROIC % Historical Data

* Premium members only.

The historical data trend for Perpetual Industries'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.

Perpetual Industries ROIC % Chart

Perpetual Industries Annual Data
Trend Jul13 Jul14 Jul15 Dec21 Dec22
ROIC %
-832.98 -619.88 -124.58 0.08 -13.33

Perpetual Industries Semi-Annual Data
Jul13 Jul14 Jul15 Dec21 Dec22
ROIC % -832.98 -619.88 -124.58 0.08 -13.33

PRPI vs BRBL, JKSM, ATVK: ROIC % Comparison

For the Specialty Industrial Machinery subindustry, Perpetual Industries'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.

Perpetual Industries ROIC % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Perpetual Industries's ROIC % distribution charts can be found below:

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


Perpetual Industries ROIC % Calculation

Perpetual Industries'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 )
=-1.473 * ( 1 - 0% )/( (11.203 + 10.899)/ 2 )
=-1.473/11.051
=-13.33 %

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))
=11.515 - 1.12 - ( 1.049 - max(0, 2.022 - 1.214+1.049))
=11.203

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))
=10.367 - 0.756 - ( 0.384 - max(0, 1.782 - 0.494+0.384))
=10.899

Perpetual Industries'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 )
=-1.473 * ( 1 - 0% )/( (11.203 + 10.899)/ 2 )
=-1.473/11.051
=-13.33 %

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))
=11.515 - 1.12 - ( 1.049 - max(0, 2.022 - 1.214+1.049))
=11.203

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))
=10.367 - 0.756 - ( 0.384 - max(0, 1.782 - 0.494+0.384))
=10.899

Note: The Operating Income data used here is one times the annual (Dec. 2022) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROIC % →
What does a ROIC % of -13.33% mean?
Perpetual Industries (PRPI) has a ROIC % of -13.33% as of Dec. 2022. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Perpetual Industries and its competitors.
Is Perpetual Industries' ROIC % too high?
Perpetual Industries' current ROIC % is -13.33%.
How does Perpetual Industries' ROIC % compare to BRBL and JKSM?
Perpetual Industries' ROIC % of -13.33% can be compared against companies in the Industrial Products industry. The industry median ROIC % is 5.23. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Industrial Products company?
The median ROIC % among Industrial Products companies is 5.23, based on 3,040 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Perpetual Industries and its competitors. For the Industrial Products industry, the median ROIC % is 5.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perpetual Industries's current ROIC % is -13.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perpetual Industries stock overvalued right now?
Perpetual Industries (PRPI) has a current ROIC % of -13.33%. The current ROIC % is -13.33%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Perpetual Industries (PRPI), the current ROIC % is -13.33% as of Dec. 2022. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Perpetual Industries Business Description

Address 2193 Rotunda Drive, Auburn, IN, USA, 46706
Perpetual Industries Inc is a U.S.-based company focused on the growth and market expansion of its wholly owned subsidiary, The Worldwide Group, LLC, which operates as Worldwide Auctioneers, is a boutique auction firm specializing in the sale and acquisition of classic and vintage motorcars, generating its primary revenues through live and online auctions held across the United States. The company serves a clientele of automotive collectors and enthusiasts. Along with its auction events, the company offers a comprehensive suite of personalized services, including private car sales appraisals, collection management, estate planning, and asset consultancy.