Coast Entertainment Holdings (Coast Entertainment Holdings) ROIC % : -8.89% (As of Dec. 2023)

View and export this data going back to 2010. Start your Free Trial

What is Coast Entertainment 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 %. Coast Entertainment Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -8.89%.

As of today (2024-05-15), Coast Entertainment Holdings's WACC % is 9.31%. Coast Entertainment Holdings's ROIC % is -9.84% (calculated using TTM income statement data). Coast Entertainment Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Coast Entertainment Holdings ROIC % Historical Data

The historical data trend for Coast Entertainment 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.

* Premium members only.

Coast Entertainment Holdings ROIC % Chart

Coast Entertainment Holdings Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROIC %

Get a 7-Day Free Trial

-2.44

-8.04

-3.90

-3.09

-3.70

Coast Entertainment Holdings Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial															2.16	-6.81	-0.74	-11.72	-8.89

Competitive Comparison of Coast Entertainment Holdings's ROIC %

For the Leisure subindustry, Coast Entertainment 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.

Coast Entertainment Holdings's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Coast Entertainment Holdings's ROIC % distribution charts can be found below:

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

Coast Entertainment Holdings ROIC % Calculation

Coast Entertainment Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROIC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-7.837 * ( 1 - -111.17% )	/	( (803.832	+	91.901)	/ 2 )
=	-16.5493929	/	447.8665
=	-3.70 %

where

	Invested Capital		(A: Jun. 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	))
=	796.81	-	16.599	-	( 28.647	-	max(0, 728.083	-	704.462	+	28.647	))
=	803.832

	Invested Capital		(A: Jun. 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	))
=	190.161	-	17.077	-	( 94.915	-	max(0, 18.486	-	99.669	+	94.915	))
=	91.901

Coast Entertainment Holdings'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: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-7.774 * ( 1 - -11.58% )	/	( (91.901	+	103.215)	/ 2 )
=	-8.6742292	/	97.558
=	-8.89 %

where

	Invested Capital		(Q: Jun. 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	))
=	190.161	-	17.077	-	( 94.915	-	max(0, 18.486	-	99.669	+	94.915	))
=	91.901

	Invested Capital		(Q: Dec. 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	))
=	204.27	-	33.845	-	( 71.215	-	max(0, 35.383	-	102.593	+	71.215	))
=	103.215

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

Coast Entertainment Holdings (OTCPK:ARDLF) 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, Coast Entertainment Holdings's WACC % is 9.31%. Coast Entertainment Holdings's ROIC % is -9.84% (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.

Coast Entertainment Holdings ROIC % Related Terms

Thank you for viewing the detailed overview of Coast Entertainment Holdings's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Coast Entertainment Holdings (Coast Entertainment Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Coast Entertainment Holdings Ltd (OTCPK:ARDLF) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

MD8:Germany CEH:Australia

Address

83 Mount Street, Suite 601, Level 6, North Sydney, Sydney, NSW, AUS, 2060

Website

https://www.coastentertainment.com.au

Ardent Leisure is an owner and operator of leisure assets. Its theme park businesses are situated in Australia, including Dreamworld and WhiteWater World on the Gold Coast. The sale of Main Event in the U.S., completed in June 2022, was executed at a good price, and the proceeds led to a healthy distribution to shareholders. It leaves the group with just the theme parks unit.

Coast Entertainment Holdings (Coast Entertainment Holdings) Headlines

From GuruFocus

MAIN EVENT TO BE ACQUIRED BY DAVE & BUSTERS FOR $835 MILLION

By PRNewswire PRNewswire • 04-06-2022