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Nathan's Famous (Nathan's Famous) ROIC %

: 82.10% (As of Dec. 2023)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Nathan's Famous's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 82.10%.

As of today (2024-04-19), Nathan's Famous's WACC % is 5.58%. Nathan's Famous's ROIC % is 135.39% (calculated using TTM income statement data). Nathan's Famous generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Nathan's Famous ROIC % Historical Data

The historical data trend for Nathan's Famous's ROIC % 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.

* Premium members only.

Nathan's Famous Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 224.45 151.06 103.36 129.59 156.25

Nathan's Famous Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 104.91 116.37 196.49 148.55 82.10

Competitive Comparison

For the Restaurants subindustry, Nathan's Famous's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Nathan's Famous ROIC % Distribution

For the Restaurants industry and Consumer Cyclical sector, Nathan's Famous's ROIC % distribution charts can be found below:

* The bar in red indicates where Nathan's Famous's ROIC % falls into.



Nathan's Famous ROIC % Calculation

Nathan's Famous's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

ROIC % (A: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2022 ) + Invested Capital (A: Mar. 2023 ))/ count )
=34.445 * ( 1 - 26.79% )/( (16.485 + 15.792)/ 2 )
=25.2171845/16.1385
=156.25 %

where

Nathan's Famous's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=20.548 * ( 1 - 30.2% )/( (17.364 + 17.575)/ 2 )
=14.342504/17.4695
=82.10 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

* 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.


Nathan's Famous  (NAS:NATH) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Nathan's Famous's WACC % is 5.58%. Nathan's Famous's ROIC % is 135.39% (calculated using TTM income statement data). Nathan's Famous generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Nathan's Famous 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 %, ROIC % 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.


Nathan's Famous ROIC % Related Terms

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Nathan's Famous (Nathan's Famous) Business Description

Traded in Other Exchanges
Address
One Jericho Plaza, Second Floor - Wing A, Jericho, NY, USA, 11753
Nathan's Famous Inc is an owner of fast food franchises in the United States. The company's reportable segment includes the Branded Product Program, Product licensing, Restaurant operations and Corporate. Branded Product Program derives revenue principally from the sale of hot dog products either directly to foodservice operators or to various foodservice distributors who resell the products to foodservice operators. It generates maximum revenue from the Branded Product Program segment. Geographically, it derives a majority of revenue from the United States.
Executives
Brian S Genson director
Joanne Podell director ONE JERICHO PLAZA, JERICHO NY 11753
Robert E Steinberg officer: VP Finance, CFO, Treasurer NATHAN'S FAMOUS INC., ONE JERICHO PLAZA, JERICHO NY 11753
Andrew M Levine director C/O NATHAN'S FAMOUS, INC., ONE JERICHO PLAZA, SECOND FLOOR - WING A, JERICHO NY 11753
Ronald G Devos officer: VP-Fin, CFO and Secy
James Robert Walker officer: SVP, Restaurants C/O NATHAN'S FAMOUS, INC., ONE JERICHO PLAZA, SECOND FLOOR - WING A, JERICHO NY 11753
Robert J Eide director 70 EAST SUNRISE HIGHWAY STE 415, VALLEY STREAM NY 11581
Randy Watts officer: VP - Franchise Operations 1400 OLD COUNTRY ROAD, SUITE 400, WESTBURY NY 11590
Leigh Platte officer: Vice President, Food Service C/O NATHAN'S FAMOUS, INC., ONE JERICHO PLAZA, SECOND FLOOR - WING A, JERICHO NY 11753
Scott F. Harvey officer: Executive Vice President ONE JERICHO PLAZA, SECOND FLOOR - WING A, JERICHO NY 11753
Donald P Schedler officer: Vice President
Barry Leistner director
Wayne Norbitz director, officer: President
Donald L Perlyn director, officer: Executive Vice President
Howard M Lorber director, 10 percent owner, officer: Executive Chairman 4400 BISCAYNE BLVD, 10TH FLOOR, MIAMI FL 33137