Genco Shipping & Trading (Genco Shipping & Trading) ROIC % : 7.90% (As of Dec. 2023)

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What is Genco Shipping & Trading 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 %. Genco Shipping & Trading's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 7.90%.

As of today (2024-04-26), Genco Shipping & Trading's WACC % is 11.34%. Genco Shipping & Trading's ROIC % is 3.37% (calculated using TTM income statement data). Genco Shipping & Trading earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Genco Shipping & Trading ROIC % Historical Data

The historical data trend for Genco Shipping & Trading'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.

Genco Shipping & Trading ROIC % Chart

Genco Shipping & Trading Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-0.06

0.61

18.38

15.60

3.33

Genco Shipping & Trading Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															11.25	1.65	4.87	-0.86	7.90

Competitive Comparison of Genco Shipping & Trading's ROIC %

For the Marine Shipping subindustry, Genco Shipping & Trading'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.

Genco Shipping & Trading's ROIC % Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, Genco Shipping & Trading's ROIC % distribution charts can be found below:

* The bar in red indicates where Genco Shipping & Trading's ROIC % falls into.

Genco Shipping & Trading ROIC % Calculation

Genco Shipping & Trading's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	35.872 * ( 1 - 0% )	/	( (1086.249	+	1071.115)	/ 2 )
=	35.872	/	1078.682
=	3.33 %

where

	Invested Capital		(A: Dec. 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	))
=	1173.866	-	29.475	-	( 58.142	-	max(0, 36.54	-	125.43	+	58.142	))
=	1086.249

	Invested Capital		(A: 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	))
=	1141.902	-	24.245	-	( 46.542	-	max(0, 35.286	-	157.272	+	46.542	))
=	1071.115

Genco Shipping & Trading's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	82.616 * ( 1 - 0% )	/	( (1021.31	+	1071.115)	/ 2 )
=	82.616	/	1046.2125
=	7.90 %

where

	Invested Capital		(Q: Sep. 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	))
=	1094.997	-	27.428	-	( 46.259	-	max(0, 36.228	-	111.522	+	46.259	))
=	1021.31

	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	))
=	1141.902	-	24.245	-	( 46.542	-	max(0, 35.286	-	157.272	+	46.542	))
=	1071.115

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Genco Shipping & Trading (NYSE:GNK) 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, Genco Shipping & Trading's WACC % is 11.34%. Genco Shipping & Trading's ROIC % is 3.37% (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.

Genco Shipping & Trading ROIC % Related Terms

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Genco Shipping & Trading (Genco Shipping & Trading) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Transportation » Genco Shipping & Trading Ltd (NYSE:GNK) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

GNU1:Germany

Address

299 Park Avenue, 12th Floor, New York, NY, USA, 10171

Website

https://www.gencoshipping.com

Genco Shipping & Trading Ltd is an international shipping company specializing in the transportation of iron ore, coal, grain, steel products and other drybulk cargoes. It is involved in the ocean transportation of drybulk cargoes. The company operates in one segment, the ocean transportation of drybulk cargoes through the ownership and operation of drybulk carrier vessels. It generates revenue through time charter agreements, spot market voyage charters, pool agreements and spot market-related time charters.

Executives

Peter George Allen	officer: Chief Financial Officer	GENCO SHIPPING & TRADING LIMITED, 299 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10171
Arthur L Regan	director	C/O ARLINGTON TANKERS LTD, THE HAYWARD BUILDING 22 BERMUDIANA ROAD, HAMILTON HM 11 D0 --
Jesper Christensen	officer: Chief Commercial Officer	GENCO SHIPPING & TRADING LIMITED, 299 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10171
Robert E Hughes	officer: Chief Operations Officer	GENCO SHIPPING & TRADING LIMITED, 299 PARK AVE., 12TH FLOOR, NEW YORK NY 10171
Apostolos Zafolias	officer: Chief Financial Officer	GENCO SHIPPING & TRADING, 299 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10171
John C Wobensmith	officer: Chief Financial Officer	35 WEST 56TH STREET, NEW YORK NY 10019
Joseph Adamo	officer: Chief Accounting Officer	GENCO SHIPPING & TRADING, 299 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10171
Ccp Ii Cayman Gp Ltd.	10 percent owner	375 PARK AVE, 12TH FLOOR, NEW YORK NY 10152
Centerbridge Credit Partners, L.p.	10 percent owner	375 PARK AVENUE, 11TH FLOOR, NEW YORK NY 10152
Karin Y Orsel	director	HOGELANDSTERWEG 14, FARMSUM P7 9936 BH
Apollo Management Holdings Gp, Llc	10 percent owner	9 W. 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Strategic Value Partners, Llc	10 percent owner	100 WEST PUTNAM AVENUE, GREENWICH CT 06830
Daniel Han	director	GENCO SHIPPING & TRADING LIMITED, 299 PARK AVE., 12TH FLOOR, NEW YORK NY 10171
Kathleen C Haines	director	P.O. BOX 385, COS COB CT 06807
Christoph O Majeske	director	17001 NORTHCHASE DR., STE. 100, HOUSTON TX 77060