Tumi Holdings (Tumi Holdings) ROIC % : 11.59% (As of Jun. 2016)

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What is Tumi Holdings ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Tumi Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2016 was 11.59%.

As of today (2024-04-25), Tumi Holdings's WACC % is 0.00%. Tumi Holdings's ROIC % is 0.00% (calculated using TTM income statement data). Tumi Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Tumi Holdings ROIC % Historical Data

The historical data trend for Tumi Holdings'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.

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Tumi Holdings ROIC % Chart

Tumi Holdings Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

ROIC %

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8.01

11.36

14.14

13.99

14.41

Tumi Holdings Quarterly Data
	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16
ROIC %	Get a 7-Day Free Trial															14.88	13.20	22.43	5.05	11.59

Competitive Comparison of Tumi Holdings's ROIC %

For the Footwear & Accessories subindustry, Tumi Holdings'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.

Tumi Holdings's ROIC % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Tumi Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Tumi Holdings's ROIC % falls into.

Tumi Holdings ROIC % Calculation

Tumi Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2015 is calculated as:

	ROIC % (A: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2014 )	+	Invested Capital (A: Dec. 2015 ))	/ count )
=	96.888 * ( 1 - 35.34% )	/	( (427.496	+	441.723)	/ 2 )
=	62.6477808	/	434.6095
=	14.41 %

where

	Invested Capital		(A: Dec. 2014 )
=	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	))
=	551.31	-	71.018	-	( 52.796	-	max(0, 71.018	-	185.235	+	52.796	))
=	427.496

	Invested Capital		(A: Dec. 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	))
=	611.944	-	75.589	-	( 94.632	-	max(0, 75.589	-	243.389	+	94.632	))
=	441.723

Tumi Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2016 is calculated as:

	ROIC % (Q: Jun. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2016 )	+	Invested Capital (Q: Jun. 2016 ))	/ count )
=	83.076 * ( 1 - 35.72% )	/	( (460.53	+	461.095)	/ 2 )
=	53.4012528	/	460.8125
=	11.59 %

where

	Invested Capital		(Q: Mar. 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	))
=	628.16	-	65.674	-	( 101.956	-	max(0, 75.303	-	254.209	+	101.956	))
=	460.53

	Invested Capital		(Q: Jun. 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	))
=	653.46	-	79.283	-	( 113.082	-	max(0, 83.69	-	277.847	+	113.082	))
=	461.095

Note: The Operating Income data used here is four times the quarterly (Jun. 2016) data.

Tumi Holdings (NYSE:TUMI) 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, Tumi Holdings's WACC % is 0.00%. Tumi Holdings'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.

Tumi Holdings ROIC % Related Terms

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Tumi Holdings (Tumi Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Tumi Holdings Inc (NYSE:TUMI) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.tumi.com

Tumi Holdings Inc was incorporated in September 2004 in Delaware in connection with the acquisition. In 2004, Company was acquired by Doughty Hanson. Company is a designer, producer and marketer of a comprehensive line of travel and business products and accessories in multiple categories. The Company's product offerings include travel bags, business cases, totes, handbags, business and travel accessories and small leather goods. It design and market its products to, sophisticated professionals, frequent travelers and brand-conscious individuals. Company have significant and loyal consumer base with its typical consumer owning multiple Tumi products. As of December 31, 2013, Company distributed its products in over 75 countries through approximately 1,900 points of distribution. It utilizes multiple channels, including retail, wholesale and e-commerce. Its retail stores represent its core approach to brand-enhancing distribution, with locations in premium retail venues throughout the world including New York, Beverly Hills, San Francisco, Chicago, Paris, London, Rome, Tokyo, Munich, Moscow, Milan and Barcelona. In April 2012, the Company completed its IPO. Company evaluates its operating performance based on net sales and operating income in four operating segments: Direct-to-Consumer North America; Indirect-to-Consumer North America; Direct-to-Consumer International; and Indirect-to-Consumer International. In Direct-to-Consumer North America, Company sold its products directly to consumers through a network of 114 company-owned retail stores consisting of full-price stores and outlet stores strategically positioned in high-end retail malls or street venues and also through its e-commerce website. Indirect-to-Consumer North America, it sold to wholesale customers in North America through approximately 800 doors, including specialty luggage retailers, prestige department stores and business-to-business channels. Direct-to-Consumer International, it sold directly to consumers through a network of 16 company-owned full-price and outlet stores in high-end street venues and select malls in international locations. Indirect-to-Consumer International, it sold its products to international wholesale customers through approximately 1,000 doors, approximately 55% of which are in the EMEA region, 40% of which are in the Asia-Pacific region, and 5% of which are in Central and South America. Raw materials include, among others, ballistic nylon fabric, plastic injected molded parts, nylon and stainless steel zipper systems, aluminum handle tubing systems, leather, polycarbonate sheeting materials, high quality waxed linen, high quality textiles and other high tensile strength materials used in the construction of its products. Company's competitors include, Rimowa, Bally, Burberry, Dunhill, Ferragamo, Gucci, Louis Vuitton, Montblanc, Porsche, among others. Company's proprietary designs are protected by over 200 design or mechanical patents. Ma

Executives

Alex Smith	director	PIER 1 IMPORTS, INC, 100 PIER 1 PLACE, FORT WORTH TX 76102
Peter L Gray	officer: EVP and General Counsel	C/O TUMI HOLDINGS INC, 1001 DURHAM AVE, SOUTH PLAINFIELD NJ 07080
Jerome Griffith	director, officer: CEO and President	C/O TUMI, INC., 1001 DURHAM AVENUE, SOUTH PLAINFIELD NJ 07080
Michael J Mardy	director, officer: CFO and EVP
David Riley	officer: CAO and SVP, Finance	1100 WINTER STREET, SUITE 4600, WALTHAM MA 02451
Thomas H Johnson	director	9201 FOREST HILL AVENUE, RICHMOND VA 23235
Joseph R Gromek	director	C/O GUESS?, INC., 1444 SOUTH ALAMEDA STREET, LOS ANGELES CA 90021

Tumi Holdings (Tumi Holdings) Headlines

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