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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Spectrum Group International's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2013 was -7.34%.
As of today (2024-06-01), Spectrum Group International's WACC % is 0.00%. Spectrum Group International's ROIC % is 0.00% (calculated using TTM income statement data). Spectrum Group International earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Spectrum Group 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.
Spectrum Group International Annual Data | |||||||||||||||||||||
Trend | Jun02 | Jun03 | Jun04 | Jun05 | Jun08 | Jun09 | Jun10 | Jun11 | Jun12 | Jun13 | |||||||||||
ROIC % | Get a 7-Day Free Trial | 5.33 | -1.79 | 2.51 | -0.68 | 0.73 |
Spectrum Group International Quarterly Data | ||||||||||||||||||||
Mar09 | Jun09 | Sep09 | Dec09 | Mar10 | Jun10 | Sep10 | Dec10 | Mar11 | Jun11 | Sep11 | Dec11 | Mar12 | Jun12 | Sep12 | Dec12 | Mar13 | Jun13 | Sep13 | Dec13 | |
ROIC % | Get a 7-Day Free Trial | 0.83 | 0.52 | 6.74 | 0.90 | -7.34 |
For the Specialty Retail subindustry, Spectrum Group 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.
For the Retail - Cyclical industry and Consumer Cyclical sector, Spectrum Group International's ROIC % distribution charts can be found below:
* The bar in red indicates where Spectrum Group International's ROIC % falls into.
Spectrum Group International's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2013 is calculated as:
ROIC % (A: Jun. 2013 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (A: Jun. 2012 ) | + | Invested Capital (A: Jun. 2013 )) | / count ) |
= | 3.416 * ( 1 - 34.13% ) | / | ( (306.649 | + | 310.96) | / 2 ) |
= | 2.2501192 | / | 308.8045 | |||
= | 0.73 % |
where
Invested Capital | (A: Jun. 2012 ) | |||||||||||
= | 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 | )) |
= | 394.211 | - | 62.257 | - | ( 25.305 | - | max(0, 273.582 | - | 362.128 | + | 25.305 | )) |
= | 306.649 |
Invested Capital | (A: Jun. 2013 ) | |||||||||||
= | 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 | )) |
= | 371.375 | - | 36.772 | - | ( 23.643 | - | max(0, 272.585 | - | 339.875 | + | 23.643 | )) |
= | 310.96 |
Spectrum Group International's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2013 is calculated as:
ROIC % (Q: Dec. 2013 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Sep. 2013 ) | + | Invested Capital (Q: Dec. 2013 )) | / count ) |
= | -13.112 * ( 1 - -53.63% ) | / | ( (248.368 | + | 300.358) | / 2 ) |
= | -20.1439656 | / | 274.363 | |||
= | -7.34 % |
where
Invested Capital | (Q: Sep. 2013 ) | |||||||||||
= | 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 | )) |
= | 357.456 | - | 65.559 | - | ( 43.529 | - | max(0, 257.787 | - | 325.201 | + | 43.529 | )) |
= | 248.368 |
Invested Capital | (Q: Dec. 2013 ) | |||||||||||
= | 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 | )) |
= | 348.641 | - | 31.365 | - | ( 16.918 | - | max(0, 251.877 | - | 314.776 | + | 16.918 | )) |
= | 300.358 |
Note: The Operating Income data used here is four times the quarterly (Dec. 2013) 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.
Spectrum Group International (OTCPK:SPGZ) 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, Spectrum Group International's WACC % is 0.00%. Spectrum Group International'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.
Thank you for viewing the detailed overview of Spectrum Group International's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Gregory N Roberts | director, 10 percent owner, officer: President and CEO | 2625 ST ANDREWS, TUSTIN CA 92660 |
Carol Meltzer | officer: General Counsel and EVP | 775 PASSAIC AVE, WEST CALDWELL NJ 07006 |
Jeffrey D Benjamin | director | 9 WEST 57TH STREET, 43TH FLOOR, NEW YORK NY 10019 |
William A Richardson | 10 percent owner | 2880 LAS VEGAS BLVD SOUTH, LAS VEGAS NV 89109 |
William Montgomery | director | 767 FIFTH AVENUE, 19TH FLOOR, NEW YORK NY 10153 |
Joel R Anderson | director | 202 NORTH COURT STREET, FLORENCE AL 35630 |
Ellis Landau | director | CO PINNACLE ENTERTAINMENT INC, 8918 SPANISH RIDGE AVENUE, LAS VEGAS NV 89148 |
Jess M Ravich | director | 11766 WILSHIRE BOULEVARD, SUITE 870, LOS ANGELES CA 90025 |
Silver Bow Ventures Llc | 10 percent owner | C/O SPECTRUM GROUP INTERNATIONAL, 1063 MCGAW, IRVINE CA 92614 |
Moorhead John | director | 5 FRANCIS J. CLARKE CIRCLE, BETHEL CT 06801 |
Nolan Christopher William Sr | director | 15 TILGHMAN DRIVE, WAYNE NJ 07470 |
Thor Gjerdrum | officer: Chief Financial Officer & EVP | 5 FRANCIS J. CLARKE CIRCLE, BETHEL CT 06801 |
Mark B Segall | director | 251 WEST 89TH STREET APT 20, NEW YORK NY 10024 |
Matthew M Walsh | officer: CFO AND EXE. V.P. | ALLERGAN, 5 GIRALDA FARMS, MADISON NJ 07940 |
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