Dubai Electricity & Water Authority PJSC (DFM:DEWA) ROIC % : 3.10% (As of Dec. 2023)

View and export this data going back to 2022. Start your Free Trial

What is Dubai Electricity & Water Authority PJSC 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 %. Dubai Electricity & Water Authority PJSC's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 3.10%.

As of today (2024-05-08), Dubai Electricity & Water Authority PJSC's WACC % is 8.86%. Dubai Electricity & Water Authority PJSC's ROIC % is 4.77% (calculated using TTM income statement data). Dubai Electricity & Water Authority PJSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Dubai Electricity & Water Authority PJSC ROIC % Historical Data

The historical data trend for Dubai Electricity & Water Authority PJSC'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.

Dubai Electricity & Water Authority PJSC ROIC % Chart

Dubai Electricity & Water Authority PJSC Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec20

Dec21

Dec22

Dec23

ROIC %

Get a 7-Day Free Trial

5.89

4.13

4.11

4.98

4.84

Dubai Electricity & Water Authority PJSC Quarterly Data
	Dec11	Dec12	Dec13	Dec14	Dec15	Dec16	Dec17	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															3.86	2.12	5.24	8.53	3.10

Competitive Comparison of Dubai Electricity & Water Authority PJSC's ROIC %

For the Utilities - Diversified subindustry, Dubai Electricity & Water Authority PJSC'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.

Dubai Electricity & Water Authority PJSC's ROIC % Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Dubai Electricity & Water Authority PJSC's ROIC % distribution charts can be found below:

* The bar in red indicates where Dubai Electricity & Water Authority PJSC's ROIC % falls into.

Dubai Electricity & Water Authority PJSC ROIC % Calculation

Dubai Electricity & Water Authority PJSC'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 )
=	8336.066 * ( 1 - -1.17% )	/	( (168158.257	+	180516.61)	/ 2 )
=	8433.5979722	/	174337.4335
=	4.84 %

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	))
=	180752.559	-	7473.986	-	( 14293.676	-	max(0, 17117.644	-	22237.96	+	14293.676	))
=	168158.257

	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	))
=	181163.507	-	8211.282	-	( 11566.001	-	max(0, 26488.69	-	18924.305	+	11566.001	))
=	180516.61

Dubai Electricity & Water Authority PJSC'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 )
=	5560.96 * ( 1 - 0% )	/	( (177869.711	+	180516.61)	/ 2 )
=	5560.96	/	179193.1605
=	3.10 %

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	))
=	183499.973	-	11205.598	-	( 13020.693	-	max(0, 27807.687	-	22232.351	+	13020.693	))
=	177869.711

	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	))
=	181163.507	-	8211.282	-	( 11566.001	-	max(0, 26488.69	-	18924.305	+	11566.001	))
=	180516.61

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

Dubai Electricity & Water Authority PJSC (DFM:DEWA) 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, Dubai Electricity & Water Authority PJSC's WACC % is 8.86%. Dubai Electricity & Water Authority PJSC's ROIC % is 4.77% (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.

Dubai Electricity & Water Authority PJSC ROIC % Related Terms

Thank you for viewing the detailed overview of Dubai Electricity & Water Authority PJSC's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Dubai Electricity & Water Authority PJSC (DFM:DEWA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Utilities » Utilities - Regulated » Dubai Electricity & Water Authority PJSC (DFM:DEWA) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Sheikh Rashid Road, Umm Hurair 2, P.O. Box 564, Near Wafi Mall, Happiness Center Zaabeel East, Dubai, ARE

Website

https://www.dewa.gov.ae

Dubai Electricity & Water Authority PJSC is engaged in water desalination and distribution and the generation, transmission and distribution of electricity, throughout the Emirate of Dubai. The group is organised into four segments: Electricity, Water, District cooling charges, and others. It generates maximum revenue from the Electricity segment.

Dubai Electricity & Water Authority PJSC (DFM:DEWA) Headlines

No Headlines