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L'Occitane International (L'Occitane International) ROIC % : 5.54% (As of Sep. 2023)


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What is L'Occitane International 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 %. L'Occitane International's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was 5.54%.

As of today (2024-05-04), L'Occitane International's WACC % is 5.11%. L'Occitane International's ROIC % is 8.04% (calculated using TTM income statement data). L'Occitane International 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.


L'Occitane International ROIC % Historical Data

The historical data trend for L'Occitane International'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.

L'Occitane International ROIC % Chart

L'Occitane International Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 9.93 7.21 8.67 10.13 9.11

L'Occitane International Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.72 15.66 6.89 10.29 5.54

Competitive Comparison of L'Occitane International's ROIC %

For the Household & Personal Products subindustry, L'Occitane International'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.


L'Occitane International's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, L'Occitane International's ROIC % distribution charts can be found below:

* The bar in red indicates where L'Occitane International's ROIC % falls into.



L'Occitane International ROIC % Calculation

L'Occitane International's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2023 is calculated as:

ROIC % (A: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2022 ) + Invested Capital (A: Mar. 2023 ))/ count )
=370.247 * ( 1 - 34.2% )/( (2850.179 + 2500.198)/ 2 )
=243.622526/2675.1885
=9.11 %

where

Invested Capital(A: Mar. 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))
=3313.958 - 390.074 - ( 397.466 - max(0, 926.901 - 1000.606+397.466))
=2850.179

Invested Capital(A: Mar. 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))
=3015.448 - 357.589 - ( 157.661 - max(0, 696.807 - 865.184+157.661))
=2500.198

L'Occitane International's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

ROIC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=183.6 * ( 1 - 21.9% )/( (2500.198 + 2672.64)/ 2 )
=143.3916/2586.419
=5.54 %

where

Invested Capital(Q: Mar. 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))
=3015.448 - 357.589 - ( 157.661 - max(0, 696.807 - 865.184+157.661))
=2500.198

Invested Capital(Q: Sep. 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))
=3134.351 - 350.676 - ( 111.035 - max(0, 822.408 - 980.219+111.035))
=2672.64

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


L'Occitane International  (OTCPK:LCCTY) 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, L'Occitane International's WACC % is 5.11%. L'Occitane International's ROIC % is 8.04% (calculated using TTM income statement data). L'Occitane International 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. L'Occitane International 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 %, 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.


L'Occitane International ROIC % Related Terms

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L'Occitane International (L'Occitane International) Business Description

Traded in Other Exchanges
Address
49, Boulevard Prince Henri, Luxembourg, LUX, L-1724
L'Occitane International manufactures and sells beauty and well-being products with natural and organic ingredients. It currently has seven brands: L'Occitane en Provence, Elemis, Sol de Janeiro, Grown Alchemist, Melvita, Erborian, and LimeLife. L'Occitane en Provence is the core brand and contributed 76% to group sales in the financial year ended March 2022. The company sells its products mainly through its own retail stores but also through distributors and other channels. It has a global presence; its top three markets are the United States, Japan, and China.

L'Occitane International (L'Occitane International) Headlines