The Motley Fool

NOVEMBER 27, 2023

ITW Return on Invested Capital data by YCharts. The company has prudently acquired companies over the years (more than two dozen acquisitions), steadily increasing its return on invested capital (ROIC). While Illinois Tool Works leans on debt, it doesn't do so too heavily. TTM = trailing 12 months.

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Conglomerates Earnings Before Interest Amortization Depreciation 246

The Motley Fool

OCTOBER 25, 2024

However, one goal may be even more important than all of these : reducing debt. Carnival's debt load remains alarming While Carnival's revenue and operating income have exceeded pre-pandemic levels, the cruise company's stock is still 68% below its all-time high of $66 , reached in early 2018. billion in long-term debt.

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Debt Earnings Before Interest Amortization Depreciation 130

The Motley Fool

APRIL 23, 2024

In fact, Microsoft and Nvidia have more cash and equivalents like marketable securities than long-term debt, hence the negative figures. NVDA net total long-term debt (quarterly) data by YCharts. Oil and gas is capital intensive, and so is investing in AI. Microsoft pays more dividends than any other U.S.-based

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The Motley Fool

JULY 3, 2023

The airline declared a dividend of 10 cents per share, saying the resumption reflected progress on its three-year financial plan that has already seen about $10 billion in debt reduction. For all of the debt it has paid down, its levels are still above where they were pre-crisis. per share consensus estimate.

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Debt Capital Return On Investment Returns 246

The Motley Fool

NOVEMBER 2, 2024

DCF is similar to free cash flow, except that operating cash flow is only reduced by maintenance capital expenditures ( capex ) and not growth capex. It ended the quarter with leverage of 3x, which it defines as net debt adjusted for equity credit in junior subordinated notes (hybrids) divided by adjusted EBITDA.

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Depreciation Debt Enterprise Values Earnings Before Interest 130

The Motley Fool

OCTOBER 5, 2024

Carnival's wall of debt First, let's take a quick look back in time at the challenges Carnival faced in recent years. The halt in sailings drove the previously profitable company to a loss, and resulted in Carnival building up a wall of debt. Carnival also has prepaid debt, for example prepaying $7.3 Image source: Getty Images.

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Shareholders Debt Earnings Before Interest Amortization 130

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 Taxes Assets Return On Investment 246

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.

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Debt Shareholders Capital Return On Investment 130

The Motley Fool

JANUARY 27, 2024

Return on invested capital also has been on the rise over the past year. AMZN Return on Invested Capital data by YCharts These moves should benefit the company in better times, too. Investors' biggest concern about Carnival has been the company's debt levels.

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Debt Return On Investment Capital Shareholders 241

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

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

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

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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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.

Shareholders 246

Shareholders Financial Institutions Debt Stakes 246

The Motley Fool

OCTOBER 26, 2024

The low earnings valuations are due to their high debt, and the market worries about their earnings' traditional cyclicality. billion in adjusted net debt. Management expects to repay $4 billion in debt in 2024, which is part of the reason why Moody's and Fitch have now rated its debt as investment grade.

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Debt Returns Return On Investment Capital 130

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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Debt Shareholders Prospects Portfolios 234

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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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

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Shareholders Debt Capital Returns 246

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 Earnings Before Interest Amortization Depreciation 130

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.

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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

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%

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Enterprise Values Earnings Before Interest Amortization Depreciation 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.

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Shareholders Return On Investment Capital Debt 211

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.

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Debt Capital Returns Return On Investment 246

The Motley Fool

DECEMBER 13, 2023

A company's return on invested capital (ROIC) measures the return it generates when it invests in the business. A high return means it can put resources in and get a lot out. AT&T's business is currently generating a negative ROIC, meaning it's destroying value when it invests.

Debt 130

Debt Investing Return On Investment Shareholders 130

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.

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Mergers and Acquisitions Return On Investment Capital Portfolios 244

The Motley Fool

AUGUST 18, 2024

Over the last decade, MTY has averaged a return on invested capital (ROIC) of 15%, generating high levels of FCF compared to the debt and equity it uses to fund its M&A ambitions. Compared to its weighted average cost of capital (WACC) of 7%, the company consistently creates value for investors.

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Mergers and Acquisitions Enterprise Values Debt Earnings Before Interest 130

The Motley Fool

MAY 5, 2024

S&P Global has a robust economic moat When companies borrow money from the public, it's important for prospective investors to understand the company's health, whether it will be able to repay its debts, and the risks associated with investing in that debt. Last year, S&P Global generated $3.9 billion in FCF.

Debt 130

Debt Prospects Financing Finance 130

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

APRIL 29, 2024

43 million loyalty members strong While growth may slow in the upcoming year as consumers wrestle with rising interest rates and credit card debt levels at all-time highs, Ulta's customer loyalty should help it ride through this potential downturn. Ulta's market-beating qualities Ulta Beauty boasts a return on invested capital (ROIC) of 61%.

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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.

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Capital Return On Investment Debt Returns 244

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 Returns Capital 244

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

OCTOBER 6, 2024

Lower interest rates reduce the cost of capital and increase the potential return on investment for capital-intensive projects, such as power generation, transmission, and distribution. Many utilities also carry a significant amount of debt on their balance sheets.

Stakes 130

Stakes Exchange-Traded Funds Banks Debt 130

The Motley Fool

OCTOBER 6, 2024

It makes Coca-Cola a more efficient business that generates a far higher return on invested capital (ROIC) than Kraft Heinz: KO Return on Invested Capital data by YCharts A high ROIC can compound for a business over time, leading to more efficient earnings growth and potentially higher investment returns.

Prospects 130

Prospects Return On Investment Debt Portfolios 130

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

Securities and Exchange Commission (SEC) Stakes Hedge Funds Investing 246

The Motley Fool

JULY 14, 2024

The merger dumped tons of debt on the company's balance sheet. All that debt put the company in emergency cost-cutting mode, including a dividend cut, slashed expenses throughout the business, and a crumbling return on invested capital.

Private Equity Firms 130

Private Equity Firms Private Equity Firms Debt Prospects 130