Navistar International (Navistar International) ROIC % : 2.71% (As of Apr. 2021)

View and export this data going back to 1987. Start your Free Trial

What is Navistar International 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 %. Navistar International's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2021 was 2.71%.

As of today (2024-05-06), Navistar International's WACC % is 5.66%. Navistar International's ROIC % is -2.02% (calculated using TTM income statement data). Navistar International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Navistar International ROIC % Historical Data

The historical data trend for Navistar International'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.

* Premium members only.

Navistar International ROIC % Chart

Navistar International Annual Data

Trend

Oct11

Oct12

Oct13

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

ROIC %

Get a 7-Day Free Trial

11.95

10.78

16.42

16.43

-1.22

Navistar International Quarterly Data
	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21
ROIC %	Get a 7-Day Free Trial															6.78	9.79	-17.25	1.27	2.71

Competitive Comparison of Navistar International's ROIC %

For the Farm & Heavy Construction Machinery subindustry, Navistar International'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.

Navistar International's ROIC % Distribution in the Farm & Heavy Construction Machinery Industry

For the Farm & Heavy Construction Machinery industry and Industrials sector, Navistar International's ROIC % distribution charts can be found below:

* The bar in red indicates where Navistar International's ROIC % falls into.

Navistar International ROIC % Calculation

Navistar International's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Oct. 2020 is calculated as:

	ROIC % (A: Oct. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Oct. 2019 )	+	Invested Capital (A: Oct. 2020 ))	/ count )
=	-60 * ( 1 - 15.21% )	/	( (4206	+	4153)	/ 2 )
=	-50.874	/	4179.5
=	-1.22 %

where

	Invested Capital		(A: Oct. 2019 )
=	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	))
=	6917	-	1341	-	( 1370	-	max(0, 3575	-	4952	+	1370	))
=	4206

	Invested Capital		(A: Oct. 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	))
=	6637	-	1278	-	( 1843	-	max(0, 3371	-	4577	+	1843	))
=	4153

Navistar International's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Apr. 2021 is calculated as:

	ROIC % (Q: Apr. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jan. 2021 )	+	Invested Capital (Q: Apr. 2021 ))	/ count )
=	156 * ( 1 - 23.29% )	/	( (4026	+	4793)	/ 2 )
=	119.6676	/	4409.5
=	2.71 %

where

	Invested Capital		(Q: Jan. 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	))
=	6118	-	1281	-	( 1261	-	max(0, 3274	-	4085	+	1261	))
=	4026

	Invested Capital		(Q: Apr. 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	))
=	7084	-	1529	-	( 1233	-	max(0, 3889	-	4651	+	1233	))
=	4793

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

Navistar International (NYSE:NAV) 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, Navistar International's WACC % is 5.66%. Navistar International's ROIC % is -2.02% (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.

Navistar International ROIC % Related Terms

Thank you for viewing the detailed overview of Navistar International's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Navistar International (Navistar International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Farm & Heavy Construction Machinery » Navistar International Corp (NYSE:NAV) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2701 Navistar Drive, Lisle, IL, USA, 60532

Website

https://www.navistar.com

Navistar International Corp is a manufacturer of medium & heavy-duty trucks, school buses, military vehicles, and diesel engines. Its operating segments are Truck, which accounts for the majority revenue; Parts; Global Operations; and Financial Services. The company manufactures Class 4 through 8 trucks and buses in the common carrier, private carrier, government, leasing, construction, energy/petroleum, and student and commercial transportation markets under the International and IC brands. Its geographical segments include the United States, Brazil, Mexico, Canada, and others, of which the majority of its revenue comes from the United States.

Executives

Dennis Suskind	director	ONE NORTH END AVENUE, WORLD FINANCIAL CENTER, NEW YORK NY 10282
Rachesky Mark H Md	director, 10 percent owner	40 WEST 57TH STREET, 24TH FLOOR, NEW YORK NY 10019
Raymond T. Miller	director	1345 AVENUE OF THE AMERICAS, 42ND FLOOR C/O MHR FUND MANAGEMENT NEW YORK NY 10105
Persio V Lisboa	officer: EVP & Chief Operating Officer	C/O NAVISTAR INTERNATIONAL CORPORATION, 2701 NAVISTAR DRIVE, LISLE IL 60532
Jose Maria Alapont	director	5725 DELPHI DRIVE, TROY MI 48098
Andreas Renschler	director	C/O NAVISTAR INTERNATIONAL CORPORATION 2701 NAVISTAR DRIVE LISLE IL 60532
Vincent J Intrieri	director	C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
William V Mcmenamin	officer: President Fin Serv & Treasurer	C/O NAVISTAR INTERNATIONAL CORPORATION 2701 NAVISTAR DRIVE LISLE IL 60532
Curt A Kramer	officer: SVP & General Counsel	4201 WINFIELD ROAD WARRENVILLE IL 60555
Troy A Clarke	director, officer: Chairman, President & CEO	C/O FUEL SYSTEMS SOLUTIONS, INC., 780 THIRD AVE. 25TH FLOOR, NEW YORK NY 10017
Walter G Borst	officer: EVP & Chief Financial Officer	2701 NAVISTAR DRIVE, LISLE IL 60532
Samara A Strycker	officer: SVP & Corporate Controller	2701 NAVISTAR DRIVE, LISLE IL 60532
Richard E Bond	officer: Corporate Secretary	NAVISTAR INTERNATIONAL CORPORATION 2701 NAVISTAR DRIVE LISLE IL 60532
Christian Schulz	director	C/O NAVISTAR INTERNATIONAL CORPORATION 2701 NAVISTAR DRIVE LISLE IL 60532
Daniel A Ninivaggi	director	C/O ICAHN ENTERPRISES L.P., 767 FIFTH AVENUE, SUITE 4600, NEW YORK NY 10153