Morrison (Wm) Supermarkets (Morrison (Wm) Supermarkets) ROIC % : -1.82% (As of Jul. 2021)

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

What is Morrison (Wm) Supermarkets 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 %. Morrison (Wm) Supermarkets's annualized return on invested capital (ROIC %) for the quarter that ended in Jul. 2021 was -1.82%.

As of today (2024-05-05), Morrison (Wm) Supermarkets's WACC % is 0.00%. Morrison (Wm) Supermarkets's ROIC % is 0.00% (calculated using TTM income statement data). Morrison (Wm) Supermarkets earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Morrison (Wm) Supermarkets ROIC % Historical Data

The historical data trend for Morrison (Wm) Supermarkets'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.

Morrison (Wm) Supermarkets ROIC % Chart

Morrison (Wm) Supermarkets Annual Data

Trend

Jan12

Jan13

Jan14

Jan15

Jan16

Jan17

Jan18

Jan19

Jan20

Jan21

ROIC %

Get a 7-Day Free Trial

4.39

4.24

3.33

3.60

1.46

Morrison (Wm) Supermarkets Semi-Annual Data
	Jan12	Jul12	Jan13	Jul13	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21
ROIC %	Get a 7-Day Free Trial															3.78	3.50	1.80	1.68	-1.82

Competitive Comparison of Morrison (Wm) Supermarkets's ROIC %

For the Grocery Stores subindustry, Morrison (Wm) Supermarkets'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.

Morrison (Wm) Supermarkets's ROIC % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Morrison (Wm) Supermarkets's ROIC % distribution charts can be found below:

* The bar in red indicates where Morrison (Wm) Supermarkets's ROIC % falls into.

Morrison (Wm) Supermarkets ROIC % Calculation

Morrison (Wm) Supermarkets's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jan. 2021 is calculated as:

	ROIC % (A: Jan. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2020 )	+	Invested Capital (A: Jan. 2021 ))	/ count )
=	343.793 * ( 1 - 41.82% )	/	( (13541.177	+	13800.819)	/ 2 )
=	200.0187674	/	13670.998
=	1.46 %

where

	Invested Capital		(A: Jan. 2020 )
=	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	))
=	14274.51	-	3444.444	-	( 398.693	-	max(0, 4439.216	-	1728.105	+	398.693	))
=	13541.177

	Invested Capital		(A: Jan. 2021 )
=	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	))
=	15055.935	-	3371.078	-	( 327.422	-	max(0, 4066.849	-	1950.887	+	327.422	))
=	13800.819

Morrison (Wm) Supermarkets's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jul. 2021 is calculated as:

	ROIC % (Q: Jul. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jan. 2021 )	+	Invested Capital (Q: Jul. 2021 ))	/ count )
=	381.216 * ( 1 - 165.85% )	/	( (13800.819	+	13766.574)	/ 2 )
=	-251.030736	/	13783.6965
=	-1.82 %

where

	Invested Capital		(Q: Jan. 2021 )
=	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	))
=	15055.935	-	3371.078	-	( 327.422	-	max(0, 4066.849	-	1950.887	+	327.422	))
=	13800.819

	Invested Capital		(Q: Jul. 2021 )
=	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	))
=	15553.867	-	4074.586	-	( 378.453	-	max(0, 4327.348	-	2040.055	+	378.453	))
=	13766.574

Note: The Operating Income data used here is two times the semi-annual (Jul. 2021) data.

Morrison (Wm) Supermarkets (OTCPK:MRWSY) 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, Morrison (Wm) Supermarkets's WACC % is 0.00%. Morrison (Wm) Supermarkets'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.

Morrison (Wm) Supermarkets ROIC % Related Terms

Thank you for viewing the detailed overview of Morrison (Wm) Supermarkets's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Morrison (Wm) Supermarkets (Morrison (Wm) Supermarkets) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Morrison (Wm) Supermarkets PLC (OTCPK:MRWSY) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Gain Lane, Hilmore House, Bradford, West Yorkshire, GBR, BD3 7DL

Website

https://www.morrisons.com

Founded by William Morrison in 1899, Wm Morrison Supermarkets is the U.K.'s fourth- largest grocery chain, with a market share of around 10%. The 2004 takeover of rival Safeway transformed the firm in terms of scale and gave it a significant presence outside its base in Northern England. The company operates about 500 stores, entirely in the United Kingdom. Morrisons has an online presence via a partnership with Ocado and Amazon and has lately been trying to expand its wholesale channel with new agreements (McColl's).