GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Diversified Energy Co PLC (LSE:DEC) » Definitions » 5-Year ROIIC %

Diversified Energy Co (LSE:DEC) 5-Year ROIIC % : -1.82% (As of Dec. 2023)


View and export this data going back to 2017. Start your Free Trial

What is Diversified Energy Co 5-Year ROIIC %?

5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year. Diversified Energy Co's 5-Year ROIIC % for the quarter that ended in Dec. 2023 was -1.82%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

The industry rank for Diversified Energy Co's 5-Year ROIIC % or its related term are showing as below:

LSE:DEC's 5-Year ROIIC % is ranked worse than
60% of 1000 companies
in the Oil & Gas industry
Industry Median: 2.93 vs LSE:DEC: -1.82

Diversified Energy Co 5-Year ROIIC % Historical Data

The historical data trend for Diversified Energy Co's 5-Year ROIIC % 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.

Diversified Energy Co 5-Year ROIIC % Chart

Diversified Energy Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
5-Year ROIIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.37 0.18 7.68 20.68 -1.82

Diversified Energy Co Semi-Annual Data
Dec13 Dec14 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
5-Year ROIIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.68 - 20.68 - -1.82

Competitive Comparison of Diversified Energy Co's 5-Year ROIIC %

For the Oil & Gas E&P subindustry, Diversified Energy Co's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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.


Diversified Energy Co's 5-Year ROIIC % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Diversified Energy Co's 5-Year ROIIC % distribution charts can be found below:

* The bar in red indicates where Diversified Energy Co's 5-Year ROIIC % falls into.



Diversified Energy Co 5-Year ROIIC % Calculation

Diversified Energy Co's 5-Year ROIIC % for the quarter that ended in Dec. 2023 is calculated as:

5-Year ROIIC %=5-Year Incremental Net Operating Profit After Taxes (NOPAT)**/5-Year Incremental Invested Capital**
=( 38.877483 (Dec. 2023) - 67.970336 (Dec. 2018) )/( 2790.099 (Dec. 2023) - 1187.295 (Dec. 2018) )
=-29.092853/1602.804
=-1.82%***

* 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.

** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Diversified Energy Co  (LSE:DEC) 5-Year ROIIC % Explanation

Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.

High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.

Be Aware

It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.


Diversified Energy Co 5-Year ROIIC % Related Terms

Thank you for viewing the detailed overview of Diversified Energy Co's 5-Year ROIIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Diversified Energy Co (LSE:DEC) Business Description

Traded in Other Exchanges
Address
1600 Corporate Drive, Birmingham, AL, USA, 35242
Diversified Energy Co PLC is an independent owner and operator of producing natural gas and oil wells concentrated in the Appalachian Basin. The company acquires and manages gas and oil properties and certain associated midstream assets. Its operations are located throughout the neighboring states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana.