Bristow Group (FRA:ERG1) ROC % : 4.02% (As of Mar. 2024)

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What is Bristow Group 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 %. Bristow Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 4.02%.

As of today (2024-06-10), Bristow Group's WACC % is 6.71%. Bristow Group's ROC % is 0.18% (calculated using TTM income statement data). Bristow Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bristow Group ROC % Historical Data

The historical data trend for Bristow Group'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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Bristow Group ROC % Chart

Bristow Group Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Dec23

ROC %

3.92

8.26

-1.45

Bristow Group Quarterly Data
	Mar19	Jun19	Sep19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial														0.13	0.21	1.12	-2.94	4.02

Bristow Group ROC % Calculation

Bristow Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	50.51 * ( 1 - 138.42% )	/	( (1244.451	+	1426.937)	/ 2 )
=	-19.405942	/	1335.694
=	-1.45 %

where

	Invested Capital		(A: Mar. 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	))
=	1656.445	-	172.492	-	( 239.502	-	max(0, 261.282	-	526.536	+	239.502	))
=	1244.451

	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	))
=	1776.484	-	184.244	-	( 165.303	-	max(0, 284.077	-	516.806	+	165.303	))
=	1426.937

Bristow Group's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	80.016 * ( 1 - 27.43% )	/	( (1426.937	+	1458.602)	/ 2 )
=	58.0676112	/	1442.7695
=	4.02 %

where

	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	))
=	1776.484	-	184.244	-	( 165.303	-	max(0, 284.077	-	516.806	+	165.303	))
=	1426.937

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	1762.514	-	174.532	-	( 129.38	-	max(0, 279.142	-	482.488	+	129.38	))
=	1458.602

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Bristow Group (FRA:ERG1) 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, Bristow Group's WACC % is 6.71%. Bristow Group's ROC % is 0.18% (calculated using TTM income statement data). Bristow Group 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.

Bristow Group ROC % Related Terms

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Bristow Group (FRA:ERG1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Bristow Group Inc (FRA:ERG1) » Definitions » ROC %

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VTOL:USA

Address

3151 Briarpark Drive, 7th Floor, Suite 700, Houston, TX, USA, 77042

Website

https://www.bristowgroup.com

Bristow Group Inc is the provider of vertical flight solutions. It provides aviation services to a broad base of major integrated, national and independent energy companies. The company provides commercial search and rescue (SAR) services in multiple countries and public sector SAR services in the United Kingdom on behalf of the Maritime & Coastguard Agency (MCA). Additionally, it offers fixed wing transportation and other aviation related solutions. Its oil and gas customers charter its helicopters to transport personnel to, from and between onshore bases and offshore production platforms, drilling rigs and other installations. It has customers in Australia, Brazil, Canada, Chile, Colombia, Guyana, India, Mexico, Nigeria, Norway, Spain, Suriname, Trinidad, the U.K and the United States.

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