The Motley Fool

APRIL 15, 2024

The LP has delivered an average return on invested capital (ROIC) of 12% over the last 10 years. Servicing debt shouldn't disrupt Enterprise Products Partners' distribution payouts either. The company manages its debt well. And it's the only midstream debt issuer with an A- credit rating.

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Debt Assets Taxes Return On Investment 246

The Motley Fool

JANUARY 14, 2024

He also places a high value on companies that generate profits that can be reinvested in the business at high rates of return. Apple certainly passes the latter test, earning an extraordinary return on invested capital of 56%. Buffett admires Apple's ability to make products that people can't live without.

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Shareholders Financial Institutions Stakes Debt 246

The Motley Fool

OCTOBER 8, 2023

The oil industry is extremely capital-intensive. Producers must stay ahead of this decline by reinvesting capital into new wells and related infrastructure. Some producers earn higher returns on their reinvested capital dollars than rivals. That's evident in ExxonMobil's long-term investment strategy.

Shareholders 245

Shareholders Capital Debt Taxes 245

The Motley Fool

SEPTEMBER 24, 2024

This rising return on invested capital (ROIC) is essential to investors as it shows the company is improving its ability to generate profits from its debt and equity -- a feat that frequently leads to a stock outperforming. TNC Net Profit Margin and ROIC data by YCharts. remains near 10-year highs.

Mergers and Acquisitions 246

Mergers and Acquisitions Debt Return On Investment Capital 246

The Motley Fool

MAY 11, 2024

It defines leverage as net debt adjusted for equity credit in junior subordinated notes (hybrids) divided by adjusted EBITDA. The company is also in solid financial shape concerning its debt load. Last year, Enterprise picked up its growth capital expenditures to $3.5 Enterprise ended the quarter with leverage of 3x.

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Depreciation Enterprise Values Leveraging Debt 241

The Motley Fool

NOVEMBER 8, 2024

Main Street Capital (NYSE: MAIN) Q3 2024 Earnings Call Nov 08, 2024 , 10:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Greetings, and welcome to the Main Street Capital third-quarter earnings conference call. Image source: The Motley Fool. You may begin.

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Capital Asset Management Due Diligence Assets 130

The Motley Fool

OCTOBER 1, 2024

Over the last 20 years, AutoZone has delivered total returns of roughly 4,000%, making it a 41-bagger in a relatively short period -- for true long-term investors, at least. With masterful capital allocators at the helm, AutoZone has provided investors with market-smashing returns -- and looks poised to continue doing so.

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Capital Return On Investment Debt Returns 246

The Motley Fool

FEBRUARY 14, 2024

However, after posting total returns of over 5,000% since the turn of the millennium, the company certainly qualifies. Despite this incredible run, Badger Meter remains a relatively small enterprise with a market capitalization of just $4 billion. BMI Return on Invested Capital data by YCharts.

Capital 246

Capital Return On Investment Accounting Debt 246

The Motley Fool

SEPTEMBER 9, 2023

Best-in-class profitability Home to over 100 brands sold in 80 countries, Hershey has a proven track record of generating healthy returns on invested capital as it expanded across the United States in its younger years and globally more recently.

Return On Investment 246

Return On Investment Capital Debt Shareholders 246

The Motley Fool

FEBRUARY 5, 2024

Diageo is quickly shifting its portfolio to capitalize on the growth levers listed above, including adding 11 net new super premium and premium brands through mergers and acquisitions (M&A) while disposing of 49 standard and value labels.

Mergers and Acquisitions 244

Mergers and Acquisitions Capital Return On Investment Portfolios 244

The Motley Fool

NOVEMBER 24, 2023

The company's return on invested capital (ROIC), an important metric that measures operational efficiency, has been over 10% for nearly two decades. PepsiCo's debt-to-equity ratio is around 2, so its capital structure includes more debt than Emerson's. With only $7.6 Data by YCharts. The stock's 3.2%

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The Motley Fool

NOVEMBER 12, 2023

billion through 2026 on new RNG facilities, Waste Management aims to generate an additional $450 million in free cash flow (FCF) annually once its capital expenditures (capex) start paying off. WM Return on Invested Capital data by YCharts Measuring the company's profitability to its debt and equity, Waste Management's 10.5%

Enterprise Values 244

Enterprise Values Amortization Depreciation Earnings Before Interest 244

The Motley Fool

JULY 14, 2024

It doesn't have a great track record for investing its capital efficiently As an investor, it's important to know whether a business is going to make good use of the capital it has on hand, as well as the capital it can draw on in the form of debt and shareholders' equity.

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Bidding Assets Capital Debt 246

The Motley Fool

OCTOBER 5, 2024

31, the company still carried almost $29 billion in long-term debt on its balance sheet. The capital-intensive nature of Carnival's operations is also not a favorable trait. This is evidenced by the company's extremely low return on invested capital (ROIC). To be fair, this balance has been coming down steadily.

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Debt Shareholders Capital Returns 246

The Motley Fool

SEPTEMBER 7, 2024

This dynamic has favored both retailers, allowing Home Depot to generate wide operating margins and high returns on invested capital. It had a trailing 12-month return on invested capital ( ROIC ) of 31.9%, which was down from 41.5%

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Taxes Return On Investment Stock Market Stock Market 238

The Motley Fool

APRIL 30, 2024

Steady profitability, a rising dividend, and a once-in-a-decade valuation Zoetis' history of successful research and development (R&D) can clearly be seen in its consistently improving return on invested capital (ROIC) , which recently hit 20%.

Return On Investment 244

Return On Investment Debt Capital Returns 244

The Motley Fool

FEBRUARY 26, 2024

Three examples are businesses with consistently growing dividend payments and a low payout ratio, steady share repurchases, and a high and rising return on invested capital. Particular financial metrics have been proven to indicate market-beating potential when analyzing stocks. This is important to investors.

Shareholders 211

Shareholders Return On Investment Capital Debt 211

The Motley Fool

AUGUST 6, 2023

In investing circles, Bill Ackman is a prominent figure. He's the founder of hedge fund Pershing Square Capital Management. The winner is: Alphabet That's right, the only AI-related stock held in Pershing Square Capital's ultra-concentrated portfolio is Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG). Image source: Getty Images.

Securities and Exchange Commission (SEC) 246

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The Motley Fool

NOVEMBER 26, 2023

We can measure Toro's ability to successfully integrate its acquisitions by using return on invested capital (ROIC) as our measuring stick. Comparing a company's profitability to its debt and equity, ROIC highlights how efficiently a company deploys its capital -- or, in Toro's case, how well it makes its acquisitions.

Capital 244

Capital Return On Investment Debt Returns 244

The Motley Fool

DECEMBER 16, 2023

Requiring a 15% annualized return for five years, an investment needs to slightly outperform the market's historical annualized total return of roughly 11% to 12% to accomplish this feat. United Parcel Service (NYSE: UPS) and Murphy USA (NYSE: MUSA) are two companies that fit this simple billing.

Mergers and Acquisitions 245

Mergers and Acquisitions Accounting Return On Investment Capital 245

The Motley Fool

AUGUST 22, 2024

Capital-allocation policy Devon Energy's capital allocation policy targets using 30% of FCF to support the balance sheet, partly in connection with the acquisition. billion debt-reduction program.) Devon will initiate a $2.5 The remaining 70% will be used for share repurchases, a quarterly fixed dividend of $0.22

Shareholders 246

Shareholders Debt Capital Returns 246

The Motley Fool

JANUARY 27, 2024

First, the company acquired Blue Sky Data and its state law compliance data on over 40,000 equity and debt securities for a mere $12 million. While sales and net income only rose by 4% and 3% in the company's most recent quarter due to low volatility in the stock market, OTC Markets quietly made two acquisitions in 2022 to restart its growth.

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Initial Public Offering Mergers and Acquisitions New York Stock Exchange Shareholders 245

The Motley Fool

JULY 3, 2024

Given Bitcoin's current price of roughly $60,000, that would imply a more than 13,000% return on investment. Over time, Saylor suggests that the differences between Bitcoin and traditional currencies will become even starker, and that will lead to capital flowing into assets denominated in Bitcoin rather than dollars.

Debt 246

Debt Assets Returns Return On Investment 246

The Motley Fool

JULY 2, 2023

A stellar return on invested capital Leveraging the power of its leadership position in the pool supplies and pool-related products market, Pool Corp. However, despite these short-term struggles, history may suggest that buying Pool right now could be a good long-term decision. Let's explore three key reasons why.

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Shareholders Leveraging Return On Investment Debt 239

The Motley Fool

MAY 9, 2024

Being able to accurately forecast its operating cash flow is vitally important when it comes to outlaying capital for bolt-on acquisitions and new projects. Multiple years of reduced capital spending by major energy companies during the pandemic has constrained the global supply of oil. during the pandemic.

Exchange-Traded Funds 244

Exchange-Traded Funds Amortization Depreciation Earnings Before Interest 244

The Motley Fool

APRIL 7, 2024

Since the spinoff, it has achieved its commitments stated at that time, which include industry-leading cash generation and debt reduction, as well as disciplined capital allocation, and return on invested capital (ROIC) that's sustainably higher than 13%.

Debt 246

Debt Capital Returns Return On Investment 246

The Motley Fool

MARCH 26, 2024

Even if you can't get an SBA loan (which can be hard to get for acquiring businesses), if you have some capital of your own to invest, and you can work with the seller to find some financing options, there are various ways to make the deal happen. Tim saw this happen for Elma Wine & Liquor after he bought the business.

Finance 242

Finance Financing Banks Startups 242

The Motley Fool

DECEMBER 28, 2023

It also expects to have a net-debt-to-adjusted- EBITDA ratio of 3.8, Kinder Morgan was levered up with debt, but it had previously been making a ton of money. For 2024, Kinder Morgan is forecasting that it will pay a dividend of $1.15 per share while collecting $1.21 in earnings per share and $8 billion in adjusted EBITDA.

Debt 240

Debt Leveraging Assets Shareholders 240

The Motley Fool

OCTOBER 7, 2024

Due to this slowdown, Etsy's market capitalization plummeted from above $30 billion to its current mark of around $6 billion, which required the S&P 500 to remove it from its index. A high and rising cash ROIC like Etsy's, comparing the company's cash generation to its debt and equity, is often an indicator of future outperformance.

Debt 246

Debt Capital Returns Return On Investment 246

The Motley Fool

JUNE 23, 2023

It's a great industry to invest in, but there is one logical problem with it: Historically, airlines don't actually cover their cost of capital. The former is simply the profits generated from the capital invested in the business, while the latter is the weighted cost of its equity and debt.

Investors 217

Investors Shareholders Investing Capital 217

The Motley Fool

AUGUST 6, 2023

The logic behind the spinoff was that it would unlock shareholder value and allow each company to more easily pursue mergers and acquisitions (M&A), allocate capital, and compensate employees as a pure play focused on one industry. The logistics services provider has come a long way since it was spun off from XPO in 2021.

Mergers and Acquisitions 237

Mergers and Acquisitions Amortization Depreciation Earnings Before Interest 237

The Motley Fool

DECEMBER 20, 2023

IBM expects to grow revenue by 3% to 5% this year, driven by strong demand for digital-transformation projects that deliver clear returns on investment for customers. IBM certainly isn't the fastest growing tech company, but valued at just 14 times forward free cash flow, it doesn't need to be to produce solid returns for investors.

Assets 246

Assets Prospects Capital Debt 246

The Motley Fool

AUGUST 31, 2024

Even with the company currently in the trough of its business cycle, Omega Flex currently holds a return on invested capital (ROIC) of 24%. Measuring the company's profitability compared to its debt and equity, this resilient ROIC is indicative of a wide moat surrounding Omega Flex's operations.

Initial Public Offering 245

Initial Public Offering Shareholders Debt Returns 245

The Motley Fool

SEPTEMBER 30, 2024

Lower interest rates lower the cost of capital and can increase the return on investment for capital-intensive projects. In the past nine years, it has reduced its total net long-term debt position by 29% and lowered its leverage. PBA Debt To Capital (Quarterly) data by YCharts.

Exchange-Traded Funds 130

Exchange-Traded Funds Debt Leveraging Capital 130

The Motley Fool

JULY 3, 2024

Generating a return on invested capital (ROIC) of 28% over the last year, the company has proven capable of creating outsize profits compared to its debt and equity. Here's why I think adding Indoff to its operations could improve these ROIC figures. Image source: Getty Images.

Debt 245

Debt Returns Return On Investment Accounting 245

The Motley Fool

JULY 21, 2024

This allowed FedEx to maintain a stable gross margin and return on invested capital (ROIC). FDX Return on Invested Capital data by YCharts. It's how shareholder value is created, and it speaks to the management team's capital stewardship. so it's not struggling to meet its debt obligations.

Debt 130

Debt Shareholders Capital Return On Investment 130

The Motley Fool

FEBRUARY 7, 2024

So, to examine this, investors can look at what each company is generating as a return on invested capital (ROIC). LOW Return on Invested Capital data by YCharts A high ROIC is excellent, but what a company pays for its capital, called the weighted average cost of capital, or WAAC , is just as important.

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Debt Amortization Depreciation Earnings Before Interest 130