Lynch Group Holdings (ASX:LGL) ROC % : 1.59% (As of Dec. 2024)

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What is Lynch Group Holdings 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 %. Lynch Group Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 1.59%.

As of today (2025-07-16), Lynch Group Holdings's WACC % is -0.78%. Lynch Group Holdings's ROC % is 1.26% (calculated using TTM income statement data). Lynch Group Holdings 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.

Lynch Group Holdings ROC % Historical Data

The historical data trend for Lynch Group Holdings'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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Lynch Group Holdings ROC % Chart

Lynch Group Holdings Annual Data

Trend

Jun21

Jun22

Jun23

Jun24

ROC %

7.79

6.94

4.09

5.61

Lynch Group Holdings Semi-Annual Data
	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial				-0.06	8.57	2.92	4.22	1.59

Lynch Group Holdings ROC % Calculation

Lynch Group Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	14.908 * ( 1 - -20.35% )	/	( (340.279	+	298.874)	/ 2 )
=	17.941778	/	319.5765
=	5.61 %

where

	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	))
=	401.674	-	46.641	-	( 36.409	-	max(0, 65.342	-	80.096	+	36.409	))
=	340.279

	Invested Capital		(A: Jun. 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	))
=	356.034	-	44.231	-	( 32.345	-	max(0, 62.084	-	75.013	+	32.345	))
=	298.874

Lynch Group Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	2.996 * ( 1 - -58.52% )	/	( (298.874	+	298.902)	/ 2 )
=	4.7492592	/	298.888
=	1.59 %

where

	Invested Capital		(Q: Jun. 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	))
=	356.034	-	44.231	-	( 32.345	-	max(0, 62.084	-	75.013	+	32.345	))
=	298.874

	Invested Capital		(Q: Dec. 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	))
=	359.905	-	51.633	-	( 17.082	-	max(0, 69.038	-	78.408	+	17.082	))
=	298.902

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

Lynch Group Holdings (ASX:LGL) 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, Lynch Group Holdings's WACC % is -0.78%. Lynch Group Holdings's ROC % is 1.26% (calculated using TTM income statement data). Lynch Group Holdings 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.

Lynch Group Holdings ROC % Related Terms

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Lynch Group Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Lynch Group Holdings Ltd (ASX:LGL) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

8b Williamson Road, Ingleburn, Sydney, NSW, AUS, 2565

Website

https://www.lynchgroup.com.au

Lynch Group Holdings Ltd is a vertically integrated wholesale floral company whose farms cover the entire process of planting, growing, merchandising, and selling flowers and potted plants to supermarket chains and commercial outlets throughout Australia and China. The Group is organized into two operating segments Australia, which operates a vertically integrated production farm and wholesale operation in Australia; and China segment, which segment operates a production farm and distribution operation in China, supplying the domestic China market as well as the Australian segment. The company generates the majority of its revenue from the Australia segment.