Barnes & Noble Education (Barnes & Noble Education) ROC %

: 6.06% (As of Jan. 2024)

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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Barnes & Noble Education's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was 6.06%.

As of today (2024-04-19), Barnes & Noble Education's WACC % is 6.80%. Barnes & Noble Education's ROC % is -2.34% (calculated using TTM income statement data). Barnes & Noble Education earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Barnes & Noble Education ROC % Historical Data

The historical data trend for Barnes & Noble Education'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.

* Premium members only.

Barnes & Noble Education Annual Data

Trend

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

ROC %

3.71

-2.36

-11.64

-5.86

-7.25

Barnes & Noble Education Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROC %																-2.56	-16.92	-22.63	23.82	6.06

Barnes & Noble Education ROC % Calculation

Barnes & Noble Education's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2023 is calculated as:

	ROC % (A: Apr. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Apr. 2022 )	+	Invested Capital (A: Apr. 2023 ))	/ count )
=	-50.335 * ( 1 - -1.13% )	/	( (791.601	+	612.878)	/ 2 )
=	-50.9037855	/	702.2395
=	-7.25 %

where

	Invested Capital		(A: Apr. 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	))
=	1071.553	-	271.157	-	( 8.795	-	max(0, 415.402	-	531.705	+	8.795	))
=	791.601

	Invested Capital		(A: Apr. 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	))
=	980.779	-	353.682	-	( 14.219	-	max(0, 462.085	-	537.001	+	14.219	))
=	612.878

Barnes & Noble Education's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	40.528 * ( 1 - -2.36% )	/	( (632.001	+	737.558)	/ 2 )
=	41.4844608	/	684.7795
=	6.06 %

where

	Invested Capital		(Q: Oct. 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	))
=	1144.979	-	497.97	-	( 15.008	-	max(0, 624.396	-	716.355	+	15.008	))
=	632.001

	Invested Capital		(Q: Jan. 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	))
=	1151.597	-	499.974	-	( 8.123	-	max(0, 849.586	-	763.651	+	8.123	))
=	737.558

Note: The Operating Income data used here is four times the quarterly (Jan. 2024) data.

Barnes & Noble Education (NYSE:BNED) 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, Barnes & Noble Education's WACC % is 6.80%. Barnes & Noble Education's ROC % is -2.34% (calculated using TTM income statement data). Barnes & Noble Education 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 %, 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.

Barnes & Noble Education ROC % Related Terms

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Barnes & Noble Education (Barnes & Noble Education) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Barnes & Noble Education Inc (NYSE:BNED) » Definitions » ROC %

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Traded in Other Exchanges

2BN:Germany 2BN:Germany

Address

120 Mountain View Boulevard, Basking Ridge, NJ, USA, 07920

Website

https://www.bned.com

Barnes & Noble Education Inc is an operator of bookstores in college and university campuses across the United States. The company is also engaged in providing digital education services. It operates in three reportable segments: Retail, wholesale, and Corporate Services.

Executives

Kevin Watson	officer: EVP, CFO	1111 STEWART AVENUE, BETHPAGE NY 11714
Raphael Wallander	director	3601 SOUTH CONGRESS AVENUE, BUILDING E, AUSTIN TX 78704
Steven G Panagos	director	C/O SPIRIT MTA REIT, 2727 NORTH HARWOOD STREET, SUITE 300, DALLAS TX 75201
Michael Huseby	director	12405 POWERSCOURT DR, C/O CHARTER COMMUNICATIONS, ST LOUIS MO 63131
Denise Warren	director	209 REDWOOD SHORES PKWY, REDWOOD CITY CA 94065
Mario R. Dell'aera	director	C/O BARNES & NOBLE EDUCATION, INC., 120 MOUNTAINVIEW BLVD., BASKING RIDGE NJ 07920
Kathryn Eberle Walker	director	1621 NORTH KENT STREET, SUITE 1200, ARLINGTON VA 22209
Zachary Levenick	other: See Explanation of Responses	840 SOUTH GRAND AVENUE, PASADENA CA 91105
David G Golden	director	C/O BLACKBAUD, INC., 2000 DANIEL ISLAND DRIVE, CHARLESTON SC 29492
Miller Michael Connolly	officer: CLO & VP Corp Affairs	C/O BARNES & NOBLE EDUCATION, INC, 120 MOUNTAIN VIEW BLVD, BASKING RIDGE NJ 07920
Nenke David W. B.	officer: Pres, DSS	C/O BARNES & NOBLE EDUCATION, INC., 120 MOUNTAIN VIEW BLVD., BASKING RIDGE NJ 07920
David A Wilson	director
David Gordon Henderson	officer: Pres, MBS; EVP, Strat Services	C/O BARNES & NOBLE EDUCATION, INC., 120 MOUNTAIN VIEW BLVD., BASKING RIDGE NJ 07920
Seema Paul	officer: Chief Accounting Officer	C/O BARNES & NOBLE EDUCATION, INC., 120 MOUNTAIN VIEW BLVD, BASKING RIDGE NJ 07920
Jonathan Shar	officer: EVP, Retail & Client Solutions	C/O BARNES & NOBLE EDUCATION, INC., 120 MOUNTAIN VIEW BLVD., BASKING RIDGE NJ 07920