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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 %. Krispy Kreme Doughnuts's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2016 was 15.84%.
As of today (2024-05-05), Krispy Kreme Doughnuts's WACC % is 0.00%. Krispy Kreme Doughnuts's ROIC % is 0.00% (calculated using TTM income statement data). Krispy Kreme Doughnuts earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Krispy Kreme Doughnuts'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.
Krispy Kreme Doughnuts Annual Data | |||||||||||||||||||||
Trend | Jan07 | Jan08 | Jan09 | Jan10 | Jan11 | Jan12 | Jan13 | Jan14 | Jan15 | Jan16 | |||||||||||
ROIC % | Get a 7-Day Free Trial | 77.30 | 8.89 | 14.88 | 12.11 | 12.96 |
Krispy Kreme Doughnuts Quarterly Data | ||||||||||||||||||||
Jul11 | Oct11 | Jan12 | Apr12 | Jul12 | Oct12 | Jan13 | Apr13 | Jul13 | Oct13 | Jan14 | Apr14 | Jul14 | Oct14 | Jan15 | Apr15 | Jul15 | Oct15 | Jan16 | Apr16 | |
ROIC % | Get a 7-Day Free Trial | 16.93 | 9.71 | 12.47 | 13.01 | 15.84 |
For the Restaurants subindustry, Krispy Kreme Doughnuts'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.
For the Restaurants industry and Consumer Cyclical sector, Krispy Kreme Doughnuts's ROIC % distribution charts can be found below:
* The bar in red indicates where Krispy Kreme Doughnuts's ROIC % falls into.
Krispy Kreme Doughnuts's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jan. 2016 is calculated as:
ROIC % (A: Jan. 2016 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (A: Jan. 2015 ) | + | Invested Capital (A: Jan. 2016 )) | / count ) |
= | 52.098 * ( 1 - 37.5% ) | / | ( (254.04 | + | 248.609) | / 2 ) |
= | 32.56125 | / | 251.3245 | |||
= | 12.96 % |
where
Invested Capital | (A: Jan. 2015 ) | |||||||||||
= | 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 | )) |
= | 352.713 | - | 47.702 | - | ( 50.971 | - | max(0, 49.958 | - | 127.847 | + | 50.971 | )) |
= | 254.04 |
Invested Capital | (A: Jan. 2016 ) | |||||||||||
= | 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 | )) |
= | 342.875 | - | 44.843 | - | ( 50.785 | - | max(0, 49.719 | - | 99.142 | + | 50.785 | )) |
= | 248.609 |
Krispy Kreme Doughnuts's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Apr. 2016 is calculated as:
ROIC % (Q: Apr. 2016 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Jan. 2016 ) | + | Invested Capital (Q: Apr. 2016 )) | / count ) |
= | 63.576 * ( 1 - 39.35% ) | / | ( (248.609 | + | 238.286) | / 2 ) |
= | 38.558844 | / | 243.4475 | |||
= | 15.84 % |
where
Invested Capital | (Q: Jan. 2016 ) | |||||||||||
= | 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 | )) |
= | 342.875 | - | 44.843 | - | ( 50.785 | - | max(0, 49.719 | - | 99.142 | + | 50.785 | )) |
= | 248.609 |
Invested Capital | (Q: Apr. 2016 ) | |||||||||||
= | 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 | )) |
= | 319.014 | - | 52.027 | - | ( 28.701 | - | max(0, 52.36 | - | 81.993 | + | 28.701 | )) |
= | 238.286 |
Note: The Operating Income data used here is four times the quarterly (Apr. 2016) 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.
Krispy Kreme Doughnuts (NYSE:KKD) 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, Krispy Kreme Doughnuts's WACC % is 0.00%. Krispy Kreme Doughnuts's ROIC % is 0.00% (calculated using TTM income statement data).
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.
Thank you for viewing the detailed overview of Krispy Kreme Doughnuts's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Tim E Bentsen | director | 5 CONCOURSE PARKWAY, SUITE 2650, ATLANTA GA 30328 |
Andrew J Schindler | director | 1301 AVENUE OF THE AMERICAS, NEW YORK NY 10019 |
Charles A Blixt | director | 1301 AVENUE OF THE AMERICAS, NEW YORK NY 10019 |
Lynn Crump Caine | director | 370 KNOLLWOOD STREET, SUITE 500, WINSTON-SALEM NC 27103 |
Lizanne Thomas | director | 1420 PEACHTREE STREET NE, SUITE 800, ATLANTA GA 30309 |
Anthony N Thompson | director, officer: President and CEO | P.O. BOX 99900, LOUISVILLE KY 40269 |
Cooper George Price Iv | officer: EVP & CFO | 6040 DUTCHMANS LANE, LOUISVILLE KY 40205 |
James H Morgan | director | PO BOX 1012 121 W TRADE STREET, STE 1500, CHARLOTTE NC 28201 |
Darryl R. Marsch | officer: SVP & General Counsel | 370 KNOLLWOOD STREET, SUITE 500, WINSTON-SALEM NC 27103 |
Michael H Sutton | director | C/O ALLEGHENY ENERGY, INC., 800 CABIN HILL DRIVE, GREENSBURG PA 15601 |
West Togo D Jr | director | 370 KNOLLWOOD ST, STE 500, WINSTON-SALEM NC 27103 |
Jeffrey B Welch | officer: Senior Vice President | 111 N. CANAL, SUITE 850, CHICAGO IL 60606 |
Robert P Stiller | 10 percent owner | 515 N. FLAGLER DR., SUITE 1702, WEST PALM BEACH FL 33401 |
Kenneth A May | officer: President and COO | 13155 NOEL ROAD, SUITE 1600, THREE GALLERIA TOWER, DALLAS TX 75240 |
Daryl G Brewster | director, officer: President & CEO | KRISPY KREME DOUGHNUTS, INC., 370 KNOLLWOOD STREET, SUITE 500, WINSTON-SALEM NC 27103 |
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