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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 %. The Bon-Ton Stores's annualized return on capital (ROC %) for the quarter that ended in Oct. 2017 was -8.88%.
As of today (2024-05-04), The Bon-Ton Stores's WACC % is 0.00%. The Bon-Ton Stores's ROC % is 0.00% (calculated using TTM income statement data). The Bon-Ton Stores earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for The Bon-Ton Stores'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.
The Bon-Ton Stores Annual Data | |||||||||||||||||||||
Trend | Jan08 | Jan09 | Jan10 | Jan11 | Jan12 | Jan13 | Jan14 | Jan15 | Jan16 | Jan17 | |||||||||||
ROC % | Get a 7-Day Free Trial | 6.06 | 5.87 | 5.09 | 0.94 | 1.57 |
The Bon-Ton Stores Quarterly Data | ||||||||||||||||||||
Jan13 | Apr13 | Jul13 | Oct13 | Jan14 | Apr14 | Jul14 | Oct14 | Jan15 | Apr15 | Jul15 | Oct15 | Jan16 | Apr16 | Jul16 | Oct16 | Jan17 | Apr17 | Jul17 | Oct17 | |
ROC % | Get a 7-Day Free Trial | -4.39 | 26.94 | -13.45 | -5.56 | -8.88 |
The Bon-Ton Stores's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2017 is calculated as:
ROC % (A: Jan. 2017 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (A: Jan. 2016 ) | + | Invested Capital (A: Jan. 2017 )) | / count ) |
= | 19.594 * ( 1 - 2.44% ) | / | ( (1250.39 | + | 1182.448) | / 2 ) |
= | 19.1159064 | / | 1216.419 | |||
= | 1.57 % |
where
Invested Capital | (A: Jan. 2016 ) | |||||||||||
= | 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 | )) |
= | 1550.626 | - | 293.357 | - | ( 6.879 | - | max(0, 344.13 | - | 815.832 | + | 6.879 | )) |
= | 1250.39 |
Invested Capital | (A: Jan. 2017 ) | |||||||||||
= | 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 | )) |
= | 1505.063 | - | 315.879 | - | ( 6.736 | - | max(0, 368.847 | - | 829.748 | + | 6.736 | )) |
= | 1182.448 |
The Bon-Ton Stores's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2017 is calculated as:
ROC % (Q: Oct. 2017 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Jul. 2017 ) | + | Invested Capital (Q: Oct. 2017 )) | / count ) |
= | -103.988 * ( 1 - 0.24% ) | / | ( (1039.826 | + | 1297.468) | / 2 ) |
= | -103.7384288 | / | 1168.647 | |||
= | -8.88 % |
where
Invested Capital | (Q: Jul. 2017 ) | |||||||||||
= | 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 | )) |
= | 1386.748 | - | 340.587 | - | ( 6.335 | - | max(0, 347.573 | - | 747.354 | + | 6.335 | )) |
= | 1039.826 |
Invested Capital | (Q: Oct. 2017 ) | |||||||||||
= | 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 | )) |
= | 1586.595 | - | 419.346 | - | ( 7.268 | - | max(0, 1091.064 | - | 960.845 | + | 7.268 | )) |
= | 1297.468 |
Note: The Operating Income data used here is four times the quarterly (Oct. 2017) 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.
The Bon-Ton Stores (OTCPK:BONTQ) 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, The Bon-Ton Stores's WACC % is 0.00%. The Bon-Ton Stores's ROC % is 0.00% (calculated using TTM income statement data). The Bon-Ton Stores 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.
Thank you for viewing the detailed overview of The Bon-Ton Stores's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Chad C Stauffer | officer: EVP, Chief Merchandising Off. | AT HOME GROUP INC. 1600 EAST PLANO PARKWAY PLANO TX 75074 |
Philmer H Rohrbaugh | director | C/O FULTON FINANCIAL CORPORATION, ONE PENN SQUARE, LANCASTER PA 17602 |
Morgan Donald E Iii | 10 percent owner | C/O BRIGADE CAPITAL MANAGEMENT, LLC, 717 FIFTH AVENUE, SUITE 1301, NEW YORK NY 10022 |
Brigade Leveraged Capital Structures Fund Ltd. | 10 percent owner | ONE NEXUS WAY, CAMANA BAY, GRAND CAYMAN E9 KY1-9005 |
Todd C Mccarty | director | 2801 EAST MARKET STREET, YORK PA 17402 |
Nancy A Walsh | officer: EVP, Chief Financial Officer | LL FLOORING HOLDINGS, INC., 4901 BAKERS MILL LANE, RICHMOND VA 23230 |
Lucinda M Baier | director | 111 WESTWOOD PLACE, SUITE 400, BRENTWOOD TN 37027 |
Brendan Hoffman | director | 100 PIER 1 PLACE, FORT WORTH TX 76102 |
Thomas K Hernquist | director | 2801 EAST MARKET STREET, YORK PA 17402 |
Remy W Trafelet | 10 percent owner | C/O TRAFELET BROKAW CAPITAL MANAGEMENT,, 410 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10022 |
Trafelet & Co Llc | 10 percent owner | 410 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10022 |
Trafelet Capital Management, L.p. | 10 percent owner | 410 PARK AVENUE, 17TH FLOOR, NEW YORK NY 10022 |
Lynn C Derry | officer: Senior VP - Gen Merch Manager | CHRISTOPHER & BANKS CORPORATION 2400 XENIUM LANE NORTH PLYMOUTH MN 55441 |
Frank Tworecke | officer: President & COO | THE BON-TON STORES, INC. 2801 E. MARKET ST., P.O. BOX 2821 YORK PA 17405 |
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