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%. OFLX PE Ratio data by YCharts Despite these large dividend payments amid the challenging operating environment, the company only uses 69% of its net income to fund its payout.

Initial Public Offering 245

Initial Public Offering Shareholders Debt Returns 245

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). Its $990 million in cash is enough to fund the payout for over six months if cash flow goes to zero overnight.

Conglomerates 246

Conglomerates Amortization Depreciation Debt 246

The Motley Fool

JULY 28, 2023

Additionally, interest rates seem to be close to their peak after the Federal Reserve raised the Fed funds rate to 5.25% to 5.5%. Home Depot excels at returning capital to shareholders Home Depot has long had a restrained growth strategy, choosing instead to optimize profitable growth and return remaining capital to shareholders.

Shareholders 244

Shareholders Stock Market Stock Market Capital 244

The Motley Fool

OCTOBER 8, 2023

One battle-tested way to look for outperformance in the stock market is to find businesses that pay a well-funded and growing dividend. A study by Hartford Funds showed that since 1973, dividend growth stocks in the S&P 500 index have outperformed the broader index (on an equal-weighted basis) by 2.5 percentage points annually.

Buyout 246

Buyout Return On Investment Shareholders Capital 246

The Motley Fool

MAY 12, 2024

If you're a current shareholder or are looking to buy shares, you'll want to consider the following first. The REIT's stable customer base is why it has grown its funds from operations ( FFO ) per share by 102.5%, or 7.3% That's because borrowing costs on new or floating-rate debt go up, making it more expensive to fund acquisitions.

Debt 245

Debt Leveraging Prospects Shareholders 245

The Motley Fool

OCTOBER 5, 2024

The business beat Wall Street estimates on both the top and bottom lines in the three-month period, which is certainly an encouraging sign for shareholders. It had no choice but to secure funding in order to stay operational. This is evidenced by the company's extremely low return on invested capital (ROIC).

Debt 246

Debt Shareholders Capital Returns 246

Private Equity Professional

DECEMBER 20, 2024

RWI is more common on cleaner M&A exits, such as deals with higher values, a higher return-on-investment, longer exit timelines, fewer management carveouts, and no survival of the sellers general reps & warranties. [5] 2] Source: 120+ deals closed in 2024 on which SRS Acquiom serves as the Shareholder Representative.

Due Diligence 100

Due Diligence Law Firms Bidding Liabilities 100

The Motley Fool

JANUARY 6, 2025

million, producing a core EBITDA margin of 11% and a trailing 12-month return on invested capital of 8.4%. This hesitancy is widespread across most segments of the construction markets, with the notable exception of publicly funded work such as infrastructure. For the first quarter, we generated consolidated core EBITDA of 210.7

Securities and Exchange Commission (SEC) 246

Securities and Exchange Commission (SEC) Capital Banks Shareholders 246

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 Capital Leveraging 245

The Motley Fool

SEPTEMBER 5, 2023

To quote Buffett, "A truly great business must have an enduring 'moat' that protects excellent returns on invested capital." Buffett is a believer in the S&P 500 index fund Researching stocks is time-consuming and often tedious, and there is no shame in choosing a less complicated investment strategy.

Investing 246

Investing Prospects Stock Market Stock Market 246

The Motley Fool

APRIL 23, 2024

Meanwhile, Nvidia must develop new chips that it won't see a return on for years. The ability to fund these expenses with income from business operations, rather than taking on debt on the balance sheet, is an excellent quality that can reduce vulnerability during a downturn in the business cycle.

Debt 242

Debt Shareholders Capital Banks 242

The Motley Fool

FEBRUARY 5, 2024

Top-tier profitability Recording a return on invested capital (ROIC) of 13%, Diageo and its Jack Daniels-making peer, Brown-Forman , are the only spirits-focused companies that consistently generate value for shareholders when putting their debt and equity to use. Should you invest $1,000 in Diageo Plc right now?

Mergers and Acquisitions 244

Mergers and Acquisitions Capital Debt Portfolios 244

The Motley Fool

JANUARY 14, 2024

The company generated funds from operations (FFO) in the third quarter of 2023 that were nearly two times greater than its quarterly distribution payout. The company's CFO, Paul Ruh, said in the third-quarter conference call in October 2023 that "dividends serve as an important part of our TSR [total shareholder return] algorithm."

Shareholders 246

Shareholders Returns Return On Investment Capital 246

The Motley Fool

DECEMBER 24, 2023

To be exempt from paying federal taxes, BDCs must return at least 90% of their income to shareholders in the form of dividends. Ares Capital has generated a lot of earnings to return in this manner: Its dividend yield currently tops 9.8%. Can Ares Capital sustain its dividend at such an ultra-high level?

Capital 239

Capital Business Development Companies Taxes Shareholders 239

The Motley Fool

JANUARY 28, 2024

These companies are home to well-funded dividends that offer the potential to grow far into the future. Nike With a total return north of 92,000% since its initial public offering (IPO) in 1980, Nike has an incredible track record of remaining the most dominant brand in footwear and apparel. It's home to a well-funded 2.3%

Initial Public Offering 264

Initial Public Offering Shareholders Capital Returns 264

The Motley Fool

JULY 17, 2023

Over the last four quarters, Airbnb has generated a free cash flow margin of more than 40% as it's capitalized on the travel recovery and earns interest on the funds it holds between guest bookings and stays, an additional benefit from its business model. The company also aims to double its return on invested capital (ROIC) to 12% by then.

Amortization 245

Amortization Depreciation Earnings Before Interest Leveraging 245

The Motley Fool

MAY 12, 2024

Also, many of the companies in this industry are structured as master limited partnerships, which makes each shareholder responsible for their portion of the partnership's taxable income. What makes MPLX stand out among its peers is its strong rates of return, capital discipline, and generous returns to shareholders.

Shareholders 130

Shareholders Leveraging Capital Taxes 130

The Motley Fool

JANUARY 9, 2024

Similarly, a stock isn't just a good value because its stock price is down or its earnings are better than the market gives it credit for, but rather because the company has what it takes to continue growing the business over time and supporting shareholder programs like dividends and buybacks.

Assets 242

Assets Asset Management Capital Return On Investment 242

The Motley Fool

DECEMBER 3, 2024

I also want to acknowledge the board of directors for providing a unique equity compensation structure that ensures my alignment with shareholder interest. With liquidity of approximately $114 million, we can more than sufficiently fund our business initiatives. Citi Trends has really unique and exciting growth opportunity.

Securities and Exchange Commission (SEC) 130

Securities and Exchange Commission (SEC) Leveraging Consulting Consultants 130

The Motley Fool

JUNE 8, 2024

With a 34% return on invested capital (ROIC) , Home Depot generates outsize profitability compared to its debt and equity. HD Return on Invested Capital data by YCharts Historically, high-and-rising ROICs such as this have led to outperforming stocks. while only using 57% of its net income to fund these payments.

Resale 130

Resale Shareholders Capital Debt 130

The Motley Fool

MAY 1, 2024

The sustainable competitive advantage created by this economic moat is one of the keys to ADP's impressive stability, and it increases the likelihood that it will continue having no problems paying shareholder dividends in the future. The company produces reliable cash flow growth, which it returns to shareholders.

Shareholders 130

Shareholders Capital Portfolios Returns 130

The Motley Fool

JANUARY 31, 2025

billion in debt and returned $1.6 billion in capital to shareholders due to dividend and share repurchases, lowering our leverage in line with our objectives and continuing our balanced capital allocation discipline. Finally, in 2024, we returned $1.6 billion in capital to shareholders, including $1 billion of share repurchases.

Leveraging 130

Leveraging Capital Taxes Shareholders 130

The Motley Fool

OCTOBER 6, 2024

annual shareholder meeting and changes to the company's public equity holdings indicate that Berkshire isn't a net buyer in today's market. This can give utilities a return, allowing them to invest in more infrastructure and pay dividends to shareholders. The fund is up an impressive 27.8%

Stakes 130

Stakes Exchange-Traded Funds Banks Debt 130

The Motley Fool

MAY 22, 2024

Snap-on's best-in-class profitability With a return on invested capital (ROIC) of 17%, Snap-on has a long history of delivering high profitability in comparison to its debt and equity. Snap-on's payout ratio is a mere 36%, despite this superior yield, meaning that it uses only 36% of its net income to fund its dividend payments.

Initial Public Offering 130

Initial Public Offering Shareholders Debt Financial Services 130

The Motley Fool

JANUARY 15, 2024

O'Reilly's best-in-class profitability O'Reilly boasts an incredible 71% return on invested capital (ROIC) , the second-highest among its peers in the Nasdaq-100. ORLY Shares Outstanding data by YCharts Consistently buying back shares in this manner can provide explosive returns to shareholders.

Initial Public Offering 130

Initial Public Offering Shareholders Capital Return On Investment 130

The Motley Fool

NOVEMBER 3, 2024

It also invests in the funds managed by its alternative asset management affiliate, Brookfield Asset Management. The company typically reinvests 75% of its annual free cash flow to compound value for shareholders. It will return the remaining cash through dividends and share repurchases.

Asset Management 130

Asset Management Investors Shareholders Assets 130

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. Should you invest $1,000 in MTY Food Group right now? Image source: Getty Images.

Mergers and Acquisitions 130

Mergers and Acquisitions Enterprise Values Debt Amortization 130

The Motley Fool

DECEMBER 13, 2024

Home Depot's only slight decline in earnings in a challenging environment shows why it is a great long-term investment. It generates a very high return on invested capital of over 30%, and management continues to see a lot of opportunity in a $1 trillion home improvement market. population with same- or next-day delivery.

Shareholders 130

Shareholders Capital Returns Return On Investment 130

The Motley Fool

MARCH 27, 2025

Finally, I'll finish my remarks by narrowing in on specific actions we're taking in the near term to drive improved profitability and enhance shareholder value in 2025. I'll then shift focus to some of our key markets and our progress on new products. Then our CFO, Jeff Creech, will provide more details on our financials.

Accounting 245

Accounting Liabilities Capital Leveraging 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. It's also higher than the 3% yield that investors can get from an exchange-traded fund (ETF) like the Vanguard Energy ETF or the mere 1.3% Should you invest $1,000 in Kinder Morgan right now?

Exchange-Traded Funds 130

Exchange-Traded Funds Debt Leveraging Capital 130

The Motley Fool

OCTOBER 25, 2024

This is money that could have otherwise been reinvested into Carnival's business or returned to shareholders. And with the federal funds rate on a downward trend, this should be relatively easy for Carnival to pull off. However, one goal may be even more important than all of these : reducing debt.

Debt 130

Debt Amortization Depreciation Earnings Before Interest 130

The Motley Fool

DECEMBER 8, 2023

The payment network runs data back and forth, requesting and verifying the funds needed when you swipe your payment card. The chart shows Visa's return on invested capital (ROIC) , which shows how much it returns on a dollar invested in the business. V Return on Invested Capital data by YCharts.

Financial Services 130

Financial Services Banks Return On Investment Shareholders 130

The Big Picture

JULY 21, 2022

New York Times ) see also In Times of Stress, Female Fund Managers Take Less Risk Than Men — For the Same Performance Fund investors don’t receive compensation for the higher risk that male managers take on, according to new research. She is now applying those lessons to her own firm. ( Institutional Investor ). Consilient Observer ).

Private Equity Firms 110

Private Equity Firms Private Equity Firms Banks Shareholders 110

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

Averaging a top-tier cash return on invested capital (ROIC) of 34% over the last decade, Rollins is one of the best compounders on the market, as evidenced by it being a 113-bagger since 2000. Even with these rapidly rising payouts, the company currently uses just 54% of its FCF to fund its dividend, making it very sustainable.

Mergers and Acquisitions 130

Mergers and Acquisitions Prospects Shareholders Returns 130

The Motley Fool

MARCH 26, 2024

A lot of fund managers aren't allowed to buy stocks under $5 a share, for example, so it could end up being a good thing. They had a lot fewer non-interest-bearing deposits than say Bank of America or Wells Fargo , things like that so the goal was to lower funding costs, diversify the portfolio. Happy to be a shareholder of?

Banks 244

Banks Education Shareholders Accounting 244

The Motley Fool

FEBRUARY 27, 2024

Exceptional profitability Best yet for investors, the company's high and rising return on invested capital (ROIC) makes these expansion plans even more promising. SFM Return on Invested Capital data by YCharts ROIC measures a company's ability to generate net income from its debt and equity.

Capital 130

Capital Debt Return On Investment Shareholders 130