Intra Energy (ASX:IEC) ROC % : -38.45% (As of Dec. 2023)

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What is Intra Energy 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 %. Intra Energy's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -38.45%.

As of today (2024-06-07), Intra Energy's WACC % is 7.27%. Intra Energy's ROC % is -36.88% (calculated using TTM income statement data). Intra Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Intra Energy ROC % Historical Data

The historical data trend for Intra Energy'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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Intra Energy ROC % Chart

Intra Energy Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

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35.67

-84.43

-58.65

-10.06

-5.78

Intra Energy Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															-9.75	-7.64	-8.14	-45.02	-38.45

Intra Energy ROC % Calculation

Intra Energy's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-1.206 * ( 1 - 0% )	/	( (40.12	+	1.617)	/ 2 )
=	-1.206	/	20.8685
=	-5.78 %

where

	Invested Capital		(A: Jun. 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	))
=	1.704	-	0.558	-	( 1.043	-	max(0, 40.34	-	1.366	+	1.043	))
=	40.12

	Invested Capital		(A: Jun. 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	))
=	2.119	-	0.263	-	( 1.299	-	max(0, 1.137	-	1.376	+	1.299	))
=	1.617

Intra Energy's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-1.188 * ( 1 - 0% )	/	( (1.617	+	4.563)	/ 2 )
=	-1.188	/	3.09
=	-38.45 %

where

	Invested Capital		(Q: Jun. 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	))
=	2.119	-	0.263	-	( 1.299	-	max(0, 1.137	-	1.376	+	1.299	))
=	1.617

	Invested Capital		(Q: 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	))
=	6.008	-	0.045	-	( 2.254	-	max(0, 0.919	-	2.319	+	2.254	))
=	4.563

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Intra Energy (ASX:IEC) 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, Intra Energy's WACC % is 7.27%. Intra Energy's ROC % is -36.88% (calculated using TTM income statement data). Intra Energy 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.

Intra Energy ROC % Related Terms

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Intra Energy (ASX:IEC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Other Energy Sources » Intra Energy Corp Ltd (ASX:IEC) » Definitions » ROC %

Traded in Other Exchanges

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Address

2 Park Street, Level 40, Sydney, NSW, AUS, 2000

Website

https://www.intraenergycorp.com.au

Intra Energy Corp Ltd is an Australia-based mining and energy company, engaged in the exploration and production of coal in South-Eastern Africa. The principal activities of the Consolidated Group were mineral exploration in Australia and progressing the sale of the Tanzanian coal operations. The company operates in two segments, Australia and Africa. Its flagship project is the Tancoal Mbalawala coal mine located in the Ngaka basin. It also holds interests in the Lurio Gold Project located in Mozambique, the Llama Project, and Yalgarra Project.