>
Switch to:

Brinker International ROC %

: 8.58% (As of Mar. 2021)
View and export this data going back to 1984. Start your Free Trial

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Brinker International's annualized return on capital (ROC %) for the quarter that ended in Mar. 2021 was 8.58%.

As of today (2021-05-09), Brinker International's WACC % is 15.99%. Brinker International's ROC % is -2.07% (calculated using TTM income statement data). Brinker International earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Brinker International ROC % Historical 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.

* Premium members only.

Brinker International Annual Data
Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20
ROC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.74 14.05 14.13 16.02 30.56

Brinker International Quarterly Data
Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21
ROC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.79 -4.32 5.02 6.67 8.58

Brinker International ROC % Calculation

Brinker International's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2020 is calculated as:

ROC % (A: Jun. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2019 ) + Invested Capital (A: Jun. 2020 ))/ count )
=110 * ( 1 - -397.96% )/( (1212.6 + 2372.1)/ 2 )
=547.756/1792.35
=30.56 %

where

Brinker International's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2021 is calculated as:

ROC % (Q: Mar. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2020 ) + Invested Capital (Q: Mar. 2021 ))/ count )
=226 * ( 1 - 11.72% )/( (2350.1 + 2302.5)/ 2 )
=199.5128/2326.3
=8.58 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2021) 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.


Brinker International  (NYSE:EAT) 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, Brinker International's WACC % is 15.99%. Brinker International's ROC % is -2.07% (calculated using TTM income statement data). Brinker International 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.


Brinker International ROC % Related Terms


Brinker International ROC % Headlines

No Headline

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)