ZEK (Zekelman Industries) ROIC %: 22.89% (As of Jun. 2018)


What is Zekelman Industries ROIC %?

Zekelman Industries ZEK ROIC % is 22.89% as of Jun. 2018.

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Zekelman Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2018 was 22.89%.

As of today (2026-06-28), Zekelman Industries's WACC % is 0.00%. Zekelman Industries's ROIC % is 0.00% (calculated using TTM income statement data). Zekelman Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Zekelman Industries  (NYSE:ZEK) 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, Zekelman Industries's WACC % is 0.00%. Zekelman Industries's ROIC % is 0.00% (calculated using TTM income statement data). Zekelman 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.

Zekelman Industries ROIC % Related Terms

Zekelman Industries ROIC % Historical Data

* Premium members only.

The historical data trend for Zekelman 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.

Zekelman Industries ROIC % Chart

Zekelman Industries Annual Data
Trend Sep15 Sep16 Sep17
ROIC %
0.00 10.82 12.49

Zekelman Industries Quarterly Data
Sep15 Sep16 Jun17 Sep17 Jun18
ROIC % 0.00 0.00 15.11 11.15 22.89

ZEK vs : ROIC % Comparison

For the Steel subindustry, Zekelman 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.

Zekelman Industries ROIC % vs Steel Industry

For the Steel industry and Basic Materials sector, Zekelman Industries's ROIC % distribution charts can be found below:

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


Zekelman Industries ROIC % Calculation

Zekelman Industries's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Sep. 2017 is calculated as:

ROIC % (A: Sep. 2017 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2016 ) + Invested Capital (A: Sep. 2017 ))/ count )
=285.507 * ( 1 - 17.79% )/( (1743.361 + 2014.87)/ 2 )
=234.7153047/1879.1155
=12.49 %

where

Invested Capital(A: Sep. 2016 )
=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))
=1957.389 - 177.307 - ( 36.721 - max(0, 222.647 - 445.19+36.721))
=1743.361

Invested Capital(A: Sep. 2017 )
=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))
=2284.805 - 240.734 - ( 29.201 - max(0, 281.82 - 683.07+29.201))
=2014.87

Zekelman Industries's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2018 is calculated as:

ROIC % (Q: Jun. 2018 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2017 ) + Invested Capital (Q: Jun. 2018 ))/ count )
=639.28 * ( 1 - 24.92% )/( (2014.87 + 2179.515)/ 2 )
=479.971424/2097.1925
=22.89 %

where

Invested Capital(Q: Sep. 2017 )
=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))
=2284.805 - 240.734 - ( 29.201 - max(0, 281.82 - 683.07+29.201))
=2014.87

Invested Capital(Q: Jun. 2018 )
=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))
=2455.493 - 239.361 - ( 36.617 - max(0, 276.8 - 851.049+36.617))
=2179.515

Note: The Operating Income data used here is four times the quarterly (Jun. 2018) 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 22.89% mean?
Zekelman Industries (ZEK) has a ROIC % of 22.89% as of Jun. 2018. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Zekelman Industries and its competitors.
Is Zekelman Industries' ROIC % too high?
Zekelman Industries' current ROIC % is 22.89%. The Steel industry median ROIC % is 2.63. Zekelman Industries' value of 22.89% is 772% above this industry median.
How does Zekelman Industries' ROIC % compare to ?
Zekelman Industries' ROIC % of 22.89% can be compared against companies in the Steel industry. The industry median ROIC % is 2.63. Zekelman Industries' value of 22.89% is 772% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Steel company?
The median ROIC % among Steel companies is 2.63, based on 624 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. Zekelman Industries's current ROIC % of 22.89% is 772% above the industry median. 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 Zekelman Industries and its competitors. For the Steel industry, the median ROIC % is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zekelman Industries's current ROIC % is 22.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zekelman Industries stock overvalued right now?
Zekelman Industries (ZEK) has a current ROIC % of 22.89%. The current ROIC % is 22.89% and 772% above the Steel industry median of 2.63. 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 Zekelman Industries (ZEK), the current ROIC % is 22.89% as of Jun. 2018. 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.

Zekelman Industries Business Description

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Address 227 West Monroe Street, Suite 2600, Chicago, IL, USA, 60606