The Motley Fool

MAY 29, 2024

Enterprise's business model has seen the company consistently grow its distributable cash flow (DCF) per unit (operating cash flow minus maintenance capital expenditures [ capex ]) most years, while keeping it pretty steady during difficult environments, such as when oil prices collapsed during 2014-2016. Image source: Getty Images.

Leveraging 130

Leveraging Taxes Enterprise Values Debt 130

The Motley Fool

APRIL 19, 2024

The two biggest areas to look at when it comes to dividend safety are its distribution coverage ratio and leverage ratio. The former measures how much cash in distributions the company is paying out, compared to how much distributable cash flow (operating cash flow minus maintenance capital expenditures) it's generating. billion to $3.75

Enterprise Values 130

Enterprise Values Depreciation Leveraging Earnings Before Interest 130

The Motley Fool

SEPTEMBER 23, 2023

A wild ride Disney said it plans to "accelerate and expand investment" in the parks division, nearly doubling capital expenditures to $60 billion over the next decade. But that deal gives Disney a bevy of assets to leverage in its theme parks too. When he returned as CEO in Nov. Is that sell-off warranted?

Leveraging 246

Leveraging Bidding Assets Capital 246

The Motley Fool

OCTOBER 26, 2024

It essentially operates a duopoly with rival Lowe's , allowing both companies to earn wide operating margins and returns on invested capital. Home Depot is a proven winner with a wide economic moat, and the company is set to capitalize on the housing recovery and efforts to close the housing shortage across the U.S.

Leveraging 130

Leveraging Capital Returns Return On Investment 130

The Motley Fool

AUGUST 3, 2024

Its FCF was lower compared to a year ago as the company increased its capital expenditures (capex) on new growth projects. Over the past five years, Enterprise has averaged about a 13% return on invested capital, so these growth projects should provide meaningful growth to the company in the years ahead.

Depreciation 130

Depreciation Leveraging Enterprise Values Earnings Before Interest 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

JANUARY 13, 2024

Meanwhile, new artificial intelligence (AI) technologies have the power to improve targeting and return on investment for advertisers. The company offers a cloud-based, self-serve platform for ad agencies and brands to manage digital ad campaigns and maximize their return on investment.

Leveraging 244

Leveraging Return On Investment Capital Returns 244

The Motley Fool

DECEMBER 19, 2023

Building out an automotive manufacturing business is extremely capital intensive and requires massive scale in order to make the unit economics work. However, when scaling up car manufacturing, it always looks dark before the operating leverage starts to kick in. Should you invest $1,000 in Rivian Automotive right now?

Initial Public Offering 245

Initial Public Offering Leveraging Capital Returns 245

The Motley Fool

OCTOBER 20, 2024

In the past five years, Alphabet's return on invested capital (ROIC) has averaged 23.8%. The business has reached tremendous scale that allows it to leverage its expenses to the benefit of shareholders. In the internet age, this is an advantage. Alphabet produced $102 billion in operating cash flow last year.

Initial Public Offering 130

Initial Public Offering Leveraging Shareholders Capital 130

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.

Depreciation 130

Depreciation Debt Enterprise Values Earnings Before Interest 130

The Motley Fool

JANUARY 12, 2024

With a market capitalization of $345 billion and trailing-12-month revenue of $154 billion, Home Depot (NYSE: HD) is a business that just about every investor is familiar with these days. The result is operating leverage and improved financial metrics for Home Depot. Through its network of more than 2,000 stores in the U.S.,

Leveraging 246

Leveraging Shareholders Banks Capital 246

The Motley Fool

OCTOBER 12, 2024

With its return on invested capital (ROIC) rising from 8% during the pandemic to 15% today, it is fair to say that the eight acquisitions the company made in the meantime have begun paying immediate dividends.

Mergers and Acquisitions 246

Mergers and Acquisitions Leveraging Funds Returns 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.

Shareholders 239

Shareholders Leveraging Return On Investment Debt 239

The Motley Fool

FEBRUARY 12, 2024

For example, Enterprise delivered a double-digit return on invested capital (ROIC) in every year since 2005. Its balance sheet is strong, with a leverage ratio of 3x and solid A- and A3 credit ratings. That's especially noteworthy because of the inherent volatility in the energy sector.

Taxes 244

Taxes Prospects Leveraging Returns 244

The Motley Fool

OCTOBER 22, 2024

With its 3,530 stores, Chipotle certainly has the scale to better leverage its costs. Cava's return on invested capital (ROIC) of 7.4% Consequently, I'd argue that at its current size, which is tiny in the grand scheme of things, Cava doesn't possess an economic moat. Cava could get there one day, but it's not there now.

Public Companies 130

Public Companies Leveraging Prospects Debt 130

The Motley Fool

OCTOBER 20, 2024

That's because Dutch Bros should be able to better leverage its expenses to the benefit of the bottom line. That helps out in other ways when it comes to effective marketing, tech investments, and finding suitable real estate for new locations. This is obvious when you find out that its return on invested capital of 2.7%

Leveraging 130

Leveraging Returns Return On Investment Portfolios 130

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 Earnings Before Interest Amortization Depreciation 237

The Motley Fool

NOVEMBER 5, 2024

Our investment strategy offers significant opportunities for growth across multiple verticals, including our core of retail and industrial and newer verticals such as data centers and gaming. At the same time, we are making progress toward the establishment of a private capital fund, which I'll touch on later in this call.

Capital 130

Capital Assets Leveraging Funds 130

The Motley Fool

OCTOBER 22, 2024

I'm going to talk about the highlights of the third quarter, then we're going to do some -- a little bit of strategic updates and we're going to end up with Tony talking about the results and capital allocation. And the third is our capital allocation priorities. Our first capital allocation priority is to invest in the business.

Capital 246

Capital Mergers and Acquisitions Leveraging Shareholders 246

The Motley Fool

OCTOBER 24, 2024

This reduction in our outstanding debt also decreased our leverage ratio to 1.47, down from 1.66 This is the lowest our leverage ratio has been in the last six years. One, in implementing a global human Capital management system and two, a third-party assessment of our cyber security environment. last quarter. Christopher S.

Leveraging 130

Leveraging Debt Shareholders Taxes 130

The Motley Fool

OCTOBER 5, 2024

And the company also expects adjusted return on invested capital of 10.5%, a half-point better than earlier guidance. All this is fantastic news and suggests more growth ahead for Carnival. Carnival also has prepaid debt, for example prepaying $7.3 billion in debt since the beginning of 2023.)

Shareholders 130

Shareholders Debt Earnings Before Interest Amortization 130

The Motley Fool

MAY 12, 2024

What makes MPLX stand out among its peers is its strong rates of return, capital discipline, and generous returns to shareholders. It has simultaneously generated some of the highest returns on invested capital while keeping its leverage (defined as debt to EBITDA) lower than most.

Shareholders 130

Shareholders Leveraging Capital Return On Investment 130

The Motley Fool

SEPTEMBER 3, 2024

Horton's scale also gives it negotiating leverage on pricing from suppliers and subcontractors, making it difficult for its rivals to compete based on price. Horton capitalized on that trend over the past decade, and demographic data suggests that new construction demand should remain strong. DHI Revenue (TTM) data by YCharts.

Prospects 130

Prospects Leveraging Capital Debt 130

The Motley Fool

JANUARY 3, 2024

This can be scored using a company's return on invested capital. Since 1990, Verizon has returned an average of $1.07 It must balance expensive investments in upgrading and maintaining its network with price-conscious customers. back for each dollar it puts into the company. That's not great. It's a tough business.

Investing 130

Investing Leveraging Return On Investment Debt 130

The Motley Fool

JANUARY 20, 2024

Then the pandemic hit, and low oil prices coupled with a heavily leveraged balance sheet forced Occidental to make a dividend cut. It's investing heavily to build out direct air capture (DAC) projects that would suck carbon dioxide from the air for permanent sequestration underground. That's a 25% increase from last year's level.

Leveraging 130

Leveraging Bidding Earnings Before Interest Amortization 130

The Motley Fool

DECEMBER 28, 2023

Limited growth options Kinder Morgan is an ideal dividend stock because it is in the company's best interest to grow slowly and return capital to shareholders instead of over-expanding the business. With less leverage, a reliable and growing dividend with a high yield, and a forward-price-to-earnings ratio of just 14.6

Debt 240

Debt Leveraging Assets Shareholders 240

The Motley Fool

JULY 25, 2024

This reduction in our outstanding debt also decreased our leverage ratio to 1.66, down from 1.76 This is the lowest our leverage ratio has been in the last five years. We will remain focused on strengthening our balance sheet and advancing to our stated goal of achieving a leverage ratio of 1.5 million or 10%. last quarter.

Leveraging 130

Leveraging Shareholders Debt Taxes 130

The Motley Fool

SEPTEMBER 27, 2023

The company's parks and cruises are doing well, so much so that Disney will double its capital investments over the next decade to $60 billion. The company's vast trove of intellectual property and its track record of leveraging those assets across its entire business are its key competitive advantages.

Leveraging 130

Leveraging Stakes Capital Investments Capital 130

The Motley Fool

MAY 16, 2024

However, there is a chance that investors who aren't comfortable paying for Nvidia's expensive valuation could be seeking alternatives to capitalize on the AI boom. More importantly, The Trade Desk has been leveraging AI to ensure that advertisers get more out of its platform. Nvidia is trading at 75 times trailing earnings.

Earnings Before Interest 244

Earnings Before Interest Amortization Depreciation Leveraging 244

The Motley Fool

MAY 9, 2024

We will also offer some perspective on our strength and balance sheet position and profitable growth with the recent divestiture of a non-core business as well as elaborate on our product strategy and our commitment to driving strong return on invested capital. In other words, we created an AI Copilot and agent creator.

Securities and Exchange Commission (SEC) 130

Securities and Exchange Commission (SEC) Legal Leveraging Capital 130

The Motley Fool

JULY 15, 2023

Its wide moat means that as long as the company operates efficiently, it could generate market-beating returns over the long haul. And historically, it has done just that, generating a 12% cash return on invested capital over the last decade. MTN Cash Return on Capital Invested (CROCI) (TTM) data by YCharts.

Capital 130

Capital Leveraging Return On Investment Debt 130

The Motley Fool

DECEMBER 2, 2023

But in an age when consumer trends and sentiment can shift quickly, how is Alphabet able to prove to advertisers that its platforms generate a superior return on investment (ROI) over the likes of Meta Platforms ' Facebook and Instagram, as well as niche players like Etsy or Pinterest ?

Portfolios 239

Portfolios Leveraging Financing Finance 239

The Motley Fool

MARCH 12, 2024

We will also offer some perspective on our strengthened balance sheet position with the recent divestiture of one of our noncore businesses, which underscores our focused product strategy and our commitment to driving a strong return on invested capital. And we now have an aligned capital structure to support our growth plans.

Leveraging 130

Leveraging Accounting Capital Debt 130

The Motley Fool

JULY 15, 2023

But that hasn't prevented the stock from surging 60% year to date, nearly doubling the return of the Nasdaq Composite. Businesses that routinely generate high margins and returns on invested capital are known to deliver superior returns to investors over many years, and Airbnb is performing exceptionally well on this front.

Startups 130

Startups Leveraging Capital Shareholders 130

The Motley Fool

SEPTEMBER 10, 2024

Leveraging our learnings over the past few quarters, we are beginning to more strategically target our growing loyalty database with creative and compelling tailored messaging to drive, visit frequency and spend. We will continue to optimize our media mix messaging and better leverage our scale and presence to drive traffic.

Capital 246

Capital Shareholders Leveraging Returns 246

The Motley Fool

JUNE 28, 2023

In its just-announced 2026 targets, the company expects EBITDA per available passenger berth day (ALBD/APBD) to increase 50% from current levels, and it expects adjusted return on invested capital (ROIC) to double to 12%. The company also said it expected to get back to strong profitability and investment-grade leverage metrics.

Earnings Before Interest 100

Earnings Before Interest Amortization Depreciation Leveraging 100

The Motley Fool

OCTOBER 29, 2024

billion of cash flow this year and have reached a key financial milestone while returning to a fully unsecured capital structure that will support our growth ambitions and expanding capital allocation. And this quarter, we reached a key financial milestone by returning to a fully unsecured capital structure.

Leveraging 130

Leveraging Capital Returns Debt 130