Questar (Questar) ROC % : 3.75% (As of Jun. 2016)

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What is Questar ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Questar's annualized return on capital (ROC %) for the quarter that ended in Jun. 2016 was 3.75%.

As of today (2024-04-28), Questar's WACC % is 0.00%. Questar's ROC % is 0.00% (calculated using TTM income statement data). Questar earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Questar ROC % Historical Data

The historical data trend for Questar's ROC % 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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Questar ROC % Chart

Questar Annual Data

Trend

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROC %

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6.74

6.60

4.81

6.31

5.48

Questar Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
ROC %	Get a 7-Day Free Trial															4.52	3.75	5.30	7.64	3.75

Questar ROC % Calculation

Questar's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	374.4 * ( 1 - 34.64% )	/	( (4251.1	+	4687.4)	/ 2 )
=	244.70784	/	4469.25
=	5.48 %

where

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	4243.9	-	205.5	-	( 32	-	max(0, 621.4	-	408.7	+	32	))
=	4251.1

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	4377.8	-	190.5	-	( 25	-	max(0, 940.2	-	440.1	+	25	))
=	4687.4

Questar's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2016 is calculated as:

	ROC % (Q: Jun. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2016 )	+	Invested Capital (Q: Jun. 2016 ))	/ count )
=	257.6 * ( 1 - 34.97% )	/	( (4467.9	+	4476.5)	/ 2 )
=	167.51728	/	4472.2
=	3.75 %

where

	Invested Capital		(Q: Mar. 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	))
=	4179.2	-	177.2	-	( 0.4	-	max(0, 700.5	-	234.6	+	0.4	))
=	4467.9

	Invested Capital		(Q: Jun. 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	))
=	4140.6	-	159.7	-	( 0	-	max(0, 658.2	-	162.6	+	0	))
=	4476.5

Note: The Operating Income data used here is four times the quarterly (Jun. 2016) data.

Questar (NYSE:STR) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Questar's WACC % is 0.00%. Questar's ROC % is 0.00% (calculated using TTM income statement data). Questar 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 %, ROC % 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.

Questar ROC % Related Terms

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Questar (Questar) Business Description

Industry

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Traded in Other Exchanges

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Address

Website

http://www.questar.com

Questar Corporation is an integrated natural gas holding company with three lines of business operated through wholly owned subsidiaries: Wexpro Company, Questar Pipeline and Questar Gas. Questar Gas distributes natural gas as a public utility in Utah, southwestern Wyoming and a small portion of southeastern Idaho. Questar Gas has the necessary regulatory approvals to serve the areas and has long-term franchises granted by communities and counties within its service area. Questar Gas currently does not face direct competition from other distributors of natural gas for residential and commercial customers in its service territory. Wexpro develops, produces and delivers natural gas from cost-of-service reserves for gas utility affiliate Questar Gas under the terms of the Wexpro Agreement and the Wexpro II Agreement (Wexpro agreements), comprehensive agreements with the states of Utah and Wyoming. Wexpro delivers natural gas production to Questar Gas at cost of service. Wexpro's properties are located in the Rocky Mountain region, in the Vermillion, Pinedale, Moxa Arch, and Uinta Basin producing fields. Wexpro faces competition in its business, including the marketing of oil and NGL, and obtaining goods, services and labor. Questar Pipeline provides natural gas transportation and underground-storage services in Utah, Wyoming and Colorado. Questar Pipeline and its subsidiaries operate 2,667 miles of interstate pipeline, including 10 miles owned by a third party. Questar Pipeline's core transportation system is strategically located near large reserves of natural gas in six Rocky Mountain producing areas. Questar Pipeline transports natural gas from these producing areas to other pipeline systems, Questar Gas's distribution system and other utility systems. In addition to this core system, Questar Pipeline, through wholly-owned subsidiaries, owns and operates the Overthrust Pipeline in southwestern Wyoming and the eastern segment of Southern Trails Pipeline, a 487-mile line that extends from the Blanco hub in New Mexico's San Juan Basin to just inside the California state line near the Arizona border. An additional 96miles of Southern Trails Pipeline in California is not in service.

Executives

Harris H Simmons	director	ZIONS BANCORPORATION, ONE MAIN STREET, SUITE 1134, SALT LAKE CITY UT 84111
Laurence M Downes	director	C/O NEW JERSEY RESOURCES CORPORATION, 1415 WYCKOFF ROAD, WALL NJ 07719
Ron W Jibson	officer: President & CEO	180 EAST 100 SOUTH, P.O. BOX 45360, SALT LAKE CITY UT 84145-0433
Rebecca Ranich	director	333 S STATE STREET, SALT LAKE CITY UT 84145-0433
Micheal G. Dunn	officer: EVP & President, QPC	333 SOUTH STATE STREET, 333 SOUTH STATE STREET UT 84145-0433
Christopher A Helms	director	MPLX LP, 200 E. HARDIN STREET, FINDLAY OH 45840
Teresa Beck	director	1681 SOUTH MOHAWK WAY, SALT LAKE CITY UT 84108
J T Mcmanus	director	605 RICHARD ARRINGTON JR BLVD N, BIRMINGHAM AL 35203-2707
Bruce A Williamson	director	C/O SOUTHCROSS ENERGY PARTNERS, L.P., 1717 MAIN STREET, SUITE 5200, DALLAS TX 75201
R D Cash	director	5201 18TH PLACE, LUBBOCK TX 79416
Keith O Rattie	director	180 EAST 100 SOUTH, SALT LAKE CITY UT 84111
Gary G Michael	director	P. O. BOX 1718, BOISE ID 83701
L Richard Flury	director	2000 W SAM HOUSTON PKWY S, SUITE 2000, HOUSTON TX 77042
Mckee Robert E Iii	director	14927 SANDALFOOT, HOUSTON TX 77095
Charles B Stanley	director, officer: EVP / COO	6500 NORTH MINERAL DRIVE, COEUR D'ALENE ID 83815-9408