Pzena Investment Management (Pzena Investment Management) ROC % : 49.42% (As of Jun. 2022)

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What is Pzena Investment Management 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 %. Pzena Investment Management's annualized return on capital (ROC %) for the quarter that ended in Jun. 2022 was 49.42%.

As of today (2024-04-26), Pzena Investment Management's WACC % is 0.00%. Pzena Investment Management's ROC % is 0.00% (calculated using TTM income statement data). Pzena Investment Management earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Pzena Investment Management ROC % Historical Data

The historical data trend for Pzena Investment Management'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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Pzena Investment Management ROC % Chart

Pzena Investment Management Annual Data

Trend

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROC %

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47.58

83.80

39.85

52.39

87.38

Pzena Investment Management Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
ROC %	Get a 7-Day Free Trial															92.97	72.99	49.88	49.42	50.23

Pzena Investment Management ROC % Calculation

Pzena Investment Management's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	105.859 * ( 1 - 6.82% )	/	( (86.78	+	139)	/ 2 )
=	98.6394162	/	112.89
=	87.38 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	188.687	-	36.373	-	( 65.534	-	max(0, 36.373	-	108.798	+	65.534	))
=	86.78

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	264.3	-	44.167	-	( 81.133	-	max(0, 44.167	-	129.207	+	81.133	))
=	139

Pzena Investment Management's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2022 is calculated as:

	ROC % (Q: Jun. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2022 )	+	Invested Capital (Q: Jun. 2022 ))	/ count )
=	98.212 * ( 1 - 14.71% )	/	( (156.531	+	182.465)	/ 2 )
=	83.7650148	/	169.498
=	49.42 %

where

	Invested Capital		(Q: Mar. 2022 )
=	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	))
=	220.115	-	28.008	-	( 35.576	-	max(0, 28.008	-	87.906	+	35.576	))
=	156.531

	Invested Capital		(Q: Jun. 2022 )
=	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	))
=	267.384	-	35.507	-	( 49.412	-	max(0, 35.507	-	104.352	+	49.412	))
=	182.465

Note: The Operating Income data used here is four times the quarterly (Jun. 2022) data.

Pzena Investment Management (NYSE:PZN) 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, Pzena Investment Management's WACC % is 0.00%. Pzena Investment Management's ROC % is 0.00% (calculated using TTM income statement data). Pzena Investment Management 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.

Pzena Investment Management ROC % Related Terms

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Pzena Investment Management (Pzena Investment Management) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Pzena Investment Management Inc (NYSE:PZN) » Definitions » ROC %

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Traded in Other Exchanges

N/A

Address

320 Park Avenue, 8th Floor, New York, NY, USA, 10022

Website

https://www.pzena.com

Pzena Investment Management Inc is a United States (U.S) based investment management company. The company adopts value-oriented investment strategies across a wide range of market capitalizations in both U.S. and non-U.S. capital markets. It manages separate accounts on behalf of institutions; acts as the sub-investment adviser for a variety of Securities and Exchange Commission registered mutual funds and non-U.S. funds, and act as investment adviser for the Pzena Mutual Funds as well as certain private placement funds. In addition, the company offers institutional investment products to public and corporate pension funds, endowments, foundations, and certain commingled vehicles geared toward institutional investors. The primary source of the revenue is management fees received.

Executives

Shavar Dakel Jeffries	director	50 HALSEY STREET, APT. 708T, NEWARK NJ 07102
Chenyu Caroline Cai	director, officer: Executive Vice President	320 PARK AVENUE, 8TH FLOOR, NEW YORK NY 10022
Joel Greenblatt	director	535 MADISON AVENUE, 30TH FLOOR, NEW YORK NY 10022
Steven M Galbraith	director	C/O PZENA INVESTMENT MANAGEMENT LLC, 120 WEST 45TH STREET, 20TH FLOOR, NEW YORK NY 10036
Richard P. Meyerowich	director	C/O PZENA INVESTMENT MANAGEMENT LLC, 120 WEST 45TH STREET, 20TH FLOOR, NEW YORK NY 10036
Evan K. Fire	officer: Chief Operating Officer	PZENA INVESTMENT MANAGEMENT, INC., 320 PARK AVENUE, 8TH FLOOR, NEW YORK NY 10022
John Paul Goetz	director, officer: President and Co-CIO	C/O PZENA INVESTMENT MANAGEMENT LLC, 120 WEST 45TH STREET, 20TH FLOOR, NEW YORK NY 10036
Richard Stanton Pzena	director, officer: Chairman, CEO and Co-CIO	C/O PZENA INVESTMENT MANAGEMENT LLC, 120 WEST 45TH STREET, 20TH FLOOR, NEW YORK NY 10036
William Louis Lipsey	director, officer: Pres., Marketing/Client Serv.	C/O PZENA INVESTMENT MANAGEMENT LLC, 320 PARK AVENUE, 8TH FLOOR, NEW YORK NY 10022
Jessica R Doran	officer: Chief Financial Officer	320 PARK AVENUE, 8TH FLOOR, C/O PZENA INVESTMENT MANAGEMENT, LLC, NEW YORK NY 10022
Punch Howard D. Jr	10 percent owner	7701 FRANCE AVE. SOUTH, SUITE 300, EDINA MN 55435
Punch & Associates Investment Management, Inc.	10 percent owner	7701 FRANCE AVE. SOUTH, SUITE 300, EDINA MN 55435
Charles D Johnston	director	C/O MORGAN STANLEY, 1585 BROADWAY, NEW YORK NY 10036
Gary J Bachman	officer: Chief Financial Officer	C/O PZENA INVESTMENT MANAGEMENT, 120 WEST 45TH STREET, 20TH FLOOR, NEW YORK NY 10036
Michael D Peterson	officer: Executive Vice President	C/O PZENA INVESTMENT MANAGEMENT, 120 WEST 45TH STREET, 20TH FLOOR, NEW YORK NY 10036