Just Group (LSE:JUST) ROC % : 0.83% (As of Dec. 2023)

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What is Just Group 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 %. Just Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 0.83%.

As of today (2024-05-27), Just Group's WACC % is 14.97%. Just Group's ROC % is 0.82% (calculated using TTM income statement data). Just Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Just Group ROC % Historical Data

The historical data trend for Just Group'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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Just Group ROC % Chart

Just Group Annual Data

Trend

Jun14

Jun15

Jun16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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1.83

1.22

0.32

-1.29

0.81

Just Group Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															0.85	-1.23	-1.31	0.86	0.83

Just Group ROC % Calculation

Just Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	294 * ( 1 - 25% )	/	( (23648.25	+	30620.6)	/ 2 )
=	220.5	/	27134.425
=	0.81 %

where

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	25412	-	87	-	( 1390	-	5% * -5735 )
=	23648.25

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	31838	-	11	-	( 1252	-	5% * 912 )
=	30620.6

Just Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	276.6 * ( 1 - 13.74% )	/	( (26654.715	+	30648.285)	/ 2 )
=	238.59516	/	28651.5
=	0.83 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	28203.1	-	198.5	-	( 1322.2	-	5% * -553.7 )
=	26654.715

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	31838	-	11	-	( 1252	-	5% * 1465.7 )
=	30648.285

Note: The EBIT data used here is two times the semi-annual (Dec. 2023) data.

Just Group (LSE:JUST) 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, Just Group's WACC % is 14.97%. Just Group's ROC % is 0.82% (calculated using TTM income statement data). Just Group 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.

Just Group ROC % Related Terms

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Just Group (LSE:JUST) Business Description

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JUSTl:UK

Address

Bancroft Road, Enterprise House, Reigate, Surrey, GBR, RH2 7RP

Website

https://www.justgroupplc.co.uk

Just Group PLC is a financial service company that offers retirement management services through products, advisory, and professional services. The company's client base includes individuals, financial intermediaries, corporate clients, and pension plan trustees. The insurance segment writes insurance products for the retirement market - which include Guaranteed Income for Life Solutions, Defined Benefit De-risking Solutions, Care Plans, Flexible Pension Plans, and Protection and invests the premiums received from these contracts in debt securities, gilts, liquidity funds, and Lifetime Mortgage advances. The Other segment also includes the group's corporate activities that are involved in managing its liquidity, capital, and investment activities.