Rosneft Oil Co (WBO:ROSN) ROIC % : 9.80% (As of Dec. 2021)

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What is Rosneft Oil Co 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 %. Rosneft Oil Co's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2021 was 9.80%.

As of today (2024-04-30), Rosneft Oil Co's WACC % is 0.00%. Rosneft Oil Co's ROIC % is 0.00% (calculated using TTM income statement data). Rosneft Oil Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Rosneft Oil Co ROIC % Historical Data

The historical data trend for Rosneft Oil Co'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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Rosneft Oil Co ROIC % Chart

Rosneft Oil Co Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROIC %

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3.55

7.20

8.93

2.53

8.51

Rosneft Oil Co Quarterly Data
	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21
ROIC %	Get a 7-Day Free Trial															4.01	5.45	8.33	10.01	9.80

Competitive Comparison of Rosneft Oil Co's ROIC %

For the Oil & Gas Integrated subindustry, Rosneft Oil Co'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.

Rosneft Oil Co's ROIC % Distribution in the Oil & Gas Industry

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

* The bar in red indicates where Rosneft Oil Co's ROIC % falls into.

Rosneft Oil Co ROIC % Calculation

Rosneft Oil Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROIC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	16949.483 * ( 1 - 19.17% )	/	( (150706.981	+	171410.027)	/ 2 )
=	13700.2671089	/	161058.504
=	8.51 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	169348.186	-	20714.902	-	( 17902.176	-	max(0, 34293.201	-	32219.504	+	17902.176	))
=	150706.981

	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	))
=	196989.861	-	27351.39	-	( 18912.559	-	max(0, 44085.414	-	42313.858	+	18912.559	))
=	171410.027

Rosneft Oil Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2021 is calculated as:

	ROIC % (Q: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2021 )	+	Invested Capital (Q: Dec. 2021 ))	/ count )
=	20923.516 * ( 1 - 22.37% )	/	( (159933.574	+	171410.027)	/ 2 )
=	16242.9254708	/	165671.8005
=	9.80 %

where

	Invested Capital		(Q: Sep. 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	))
=	189223.904	-	28557.49	-	( 20345.03	-	max(0, 42144.108	-	42876.948	+	20345.03	))
=	159933.574

	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	))
=	196989.861	-	27351.39	-	( 18912.559	-	max(0, 44085.414	-	42313.858	+	18912.559	))
=	171410.027

Note: The Operating Income data used here is four times the quarterly (Dec. 2021) data.

Rosneft Oil Co (WBO:ROSN) 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, Rosneft Oil Co's WACC % is 0.00%. Rosneft Oil Co's ROIC % is 0.00% (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.

Rosneft Oil Co ROIC % Related Terms

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Rosneft Oil Co (WBO:ROSN) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

N/A

Address

26/1 Sofiyskaya Embankment, Moscow, RUS, 117997

Website

https://www.rosneft.com

Rosneft Oil Co is an integrated oil and gas company in which the Russian government is a majority shareholder. The company explores, produces, refines, transports, and sells oil and gas. The majority of revenue is generated from its oil segment, where crude and refined products are sold to international and domestic markets. Upstream, Rosneft's exploration and production is concentrated in Central Russia, with other fields throughout the country. The majority of its crude oil is exported to Europe and Asia. Downstream, the company has several refineries across Russia, which sell refined products to European and Russian markets. This includes many of Rosneft's filling stations, where the company captures additional revenue from gasoline and diesel fuel sales.