Ten Lifestyle Group (LSE:TENG) ROC % : 0.03% (As of Feb. 2024)

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What is Ten Lifestyle 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 %. Ten Lifestyle Group's annualized return on capital (ROC %) for the quarter that ended in Feb. 2024 was 0.03%.

As of today (2024-05-25), Ten Lifestyle Group's WACC % is 9.78%. Ten Lifestyle Group's ROC % is 37.00% (calculated using TTM income statement data). Ten Lifestyle Group 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.

Ten Lifestyle Group ROC % Historical Data

The historical data trend for Ten Lifestyle 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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Ten Lifestyle Group ROC % Chart

Ten Lifestyle Group Annual Data

Trend

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

ROC %

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-48.60

-23.77

-20.00

-15.09

24.12

Ten Lifestyle Group Semi-Annual Data
	Aug15	Aug16	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
ROC %	Get a 7-Day Free Trial											-30.25	-8.07	-1.86	68.24	0.03

Ten Lifestyle Group ROC % Calculation

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

	ROC % (A: Aug. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2022 )	+	Invested Capital (A: Aug. 2023 ))	/ count )
=	1.795 * ( 1 - -392.1% )	/	( (31.591	+	41.65)	/ 2 )
=	8.833195	/	36.6205
=	24.12 %

where

	Invested Capital		(A: Aug. 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	))
=	33.242	-	5.658	-	( 6.063	-	max(0, 20.639	-	16.632	+	6.063	))
=	31.591

	Invested Capital		(A: Aug. 2023 )
=	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	))
=	42.862	-	5.214	-	( 7.129	-	max(0, 24.35	-	20.348	+	7.129	))
=	41.65

Ten Lifestyle Group's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2024 is calculated as:

	ROC % (Q: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2023 )	+	Invested Capital (Q: Feb. 2024 ))	/ count )
=	1.348 * ( 1 - 99.23% )	/	( (41.65	+	27.954)	/ 2 )
=	0.0103796	/	34.802
=	0.03 %

where

	Invested Capital		(Q: Aug. 2023 )
=	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	))
=	42.862	-	5.214	-	( 7.129	-	max(0, 24.35	-	20.348	+	7.129	))
=	41.65

	Invested Capital		(Q: Feb. 2024 )
=	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	))
=	43.923	-	18.292	-	( 7.955	-	max(0, 22.343	-	20.02	+	7.955	))
=	27.954

Note: The Operating Income data used here is two times the semi-annual (Feb. 2024) data.

Ten Lifestyle Group (LSE:TENG) 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, Ten Lifestyle Group's WACC % is 9.78%. Ten Lifestyle Group's ROC % is 37.00% (calculated using TTM income statement data). Ten Lifestyle Group 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.

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.

Ten Lifestyle Group ROC % Related Terms

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Ten Lifestyle Group (LSE:TENG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Ten Lifestyle Group PLC (LSE:TENG) » Definitions » ROC %

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Address

355 Euston Road, 2nd Floor, Fitzroy House, London, GBR, NW1 3AL

Website

https://www.tenlifestylegroup.com

Ten Lifestyle Group PLC is a technology-enabled lifestyle and travel platform company. It assists its customers to discover, organize, and book travel, dining, and live entertainment to save time and money. The company's geographical segments include Europe, the Middle East and Africa (EMEA), North and South America (The Americas) and Asia-Pacific (APAC). It offers a range of product platforms such as Ten Digital Platforms Ten MAID (management and information delivery) and others. The company derives revenue mainly from service fees that are paid by its corporate clients, under contracts.

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