Perry Ellis International (Perry Ellis International) ROC % : -1.80% (As of Jul. 2018)

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What is Perry Ellis International ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Perry Ellis International's annualized return on capital (ROC %) for the quarter that ended in Jul. 2018 was -1.80%.

As of today (2024-05-12), Perry Ellis International's WACC % is 0.00%. Perry Ellis International's ROC % is 0.00% (calculated using TTM income statement data). Perry Ellis International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Perry Ellis International ROC % Historical Data

The historical data trend for Perry Ellis International's ROC % 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.

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Perry Ellis International ROC % Chart

Perry Ellis International Annual Data

Trend

Jan09

Jan10

Jan11

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

ROC %

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2.11

-18.67

5.94

5.21

15.36

Perry Ellis International Quarterly Data
	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18
ROC %	Get a 7-Day Free Trial															1.46	4.35	41.45	9.76	-1.80

Perry Ellis International ROC % Calculation

Perry Ellis International's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2018 is calculated as:

	ROC % (A: Jan. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2017 )	+	Invested Capital (A: Jan. 2018 ))	/ count )
=	41.237 * ( 1 - -68.02% )	/	( (439.481	+	462.453)	/ 2 )
=	69.2864074	/	450.967
=	15.36 %

where

	Invested Capital		(A: Jan. 2017 )
=	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	))
=	592.705	-	111.608	-	( 41.616	-	max(0, 117.864	-	341.216	+	41.616	))
=	439.481

	Invested Capital		(A: Jan. 2018 )
=	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	))
=	634.162	-	122.401	-	( 49.308	-	max(0, 140.323	-	389.781	+	49.308	))
=	462.453

Perry Ellis International's annualized Return on Capital (ROC %) for the quarter that ended in Jul. 2018 is calculated as:

	ROC % (Q: Jul. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Apr. 2018 )	+	Invested Capital (Q: Jul. 2018 ))	/ count )
=	-10.648 * ( 1 - 20.83% )	/	( (506.458	+	432.3)	/ 2 )
=	-8.4300216	/	469.379
=	-1.80 %

where

	Invested Capital		(Q: Apr. 2018 )
=	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	))
=	661.528	-	99.687	-	( 55.383	-	max(0, 104.338	-	417.976	+	55.383	))
=	506.458

	Invested Capital		(Q: Jul. 2018 )
=	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	))
=	554.666	-	101.028	-	( 21.338	-	max(0, 104.926	-	312.659	+	21.338	))
=	432.3

Note: The Operating Income data used here is four times the quarterly (Jul. 2018) data.

Perry Ellis International (NAS:PERY) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Perry Ellis International's WACC % is 0.00%. Perry Ellis International's ROC % is 0.00% (calculated using TTM income statement data). Perry Ellis International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % 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.

Perry Ellis International ROC % Related Terms

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Perry Ellis International (Perry Ellis International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Perry Ellis International Inc (NAS:PERY) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

Website

http://www.pery.com

Perry Ellis manufactures apparel and accessories that it sells under its own brand names or via licensed brands. Notable company-owned brands include Original Penguin and Perry Ellis. Licenses are primarily for golf apparel or swimwear. The company is the official apparel licensee for Callaway Golf and the official swimwear licensee in North America for Nike. Perry Ellis primarily distributes its products to wholesale customers, which sell through channels including department stores, specialty stores, sporting goods stores, and e-commerce. The company also maintains its own Perry Ellis and Original Penguin retail stores. The majority of the firm's revenue is generated in the men's sportswear and swim segment and from sales in the United States.

Executives

Bruce J Klatsky	director	3000 NW 107TH AVENUE, MIAMI FL 33172
Michael W Rayden	director
Jane E. Deflorio	director	3000 N.W. 107TH AVENUE, MIAMI FL 33172
Anita D Britt	officer: Chief Financial Officer	3000 NW 107TH AVENUE, MIAMI FL 33172
Barry S Gluck	director
George Pita	officer: Sr. Vice President - Finance	3000 NW 107TH AVENUE, MIAMI FL 33172
Timothy B Page	officer: Chief Financial Officer	3000 NW 107TH AVE MIAMI FL 33172
De Cardenas Alberto I	officer: Senior VP and General Counsel	800 S DOUGLAS ROAD, 12TH FLOOR, CORAL GABLES X1 33134