Keurig Green Mountain (Keurig Green Mountain) ROC % : 12.93% (As of Dec. 2015)

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What is Keurig Green Mountain 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 %. Keurig Green Mountain's annualized return on capital (ROC %) for the quarter that ended in Dec. 2015 was 12.93%.

As of today (2024-04-26), Keurig Green Mountain's WACC % is 0.00%. Keurig Green Mountain's ROC % is 0.00% (calculated using TTM income statement data). Keurig Green Mountain earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Keurig Green Mountain ROC % Historical Data

The historical data trend for Keurig Green Mountain'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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Keurig Green Mountain ROC % Chart

Keurig Green Mountain Annual Data

Trend

Sep06

Sep07

Sep08

Sep09

Sep10

Sep11

Sep12

Sep13

Sep14

Sep15

ROC %

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12.48

12.27

16.60

20.16

15.65

Keurig Green Mountain Quarterly Data
	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15
ROC %	Get a 7-Day Free Trial															17.04	18.72	13.26	11.54	12.93

Keurig Green Mountain ROC % Calculation

Keurig Green Mountain's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2015 is calculated as:

	ROC % (A: Sep. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2014 )	+	Invested Capital (A: Sep. 2015 ))	/ count )
=	765.424 * ( 1 - 33.57% )	/	( (3125.143	+	3371.982)	/ 2 )
=	508.4711632	/	3248.5625
=	15.65 %

where

	Invested Capital		(A: Sep. 2014 )
=	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	))
=	4797.307	-	810.95	-	( 861.214	-	max(0, 842.988	-	2445.52	+	861.214	))
=	3125.143

	Invested Capital		(A: Sep. 2015 )
=	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	))
=	4001.577	-	570.261	-	( 59.334	-	max(0, 602.124	-	1517.203	+	59.334	))
=	3371.982

Keurig Green Mountain's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2015 is calculated as:

	ROC % (Q: Dec. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2015 )	+	Invested Capital (Q: Dec. 2015 ))	/ count )
=	643.252 * ( 1 - 34.25% )	/	( (3371.982	+	3169.149)	/ 2 )
=	422.93819	/	3270.5655
=	12.93 %

where

	Invested Capital		(Q: Sep. 2015 )
=	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	))
=	4001.577	-	570.261	-	( 59.334	-	max(0, 602.124	-	1517.203	+	59.334	))
=	3371.982

	Invested Capital		(Q: Dec. 2015 )
=	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	))
=	3931.453	-	547.395	-	( 214.909	-	max(0, 579.47	-	1511.924	+	214.909	))
=	3169.149

Note: The Operating Income data used here is four times the quarterly (Dec. 2015) data.

Keurig Green Mountain (NAS:GMCR) 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, Keurig Green Mountain's WACC % is 0.00%. Keurig Green Mountain's ROC % is 0.00% (calculated using TTM income statement data). Keurig Green Mountain 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.

Keurig Green Mountain ROC % Related Terms

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Keurig Green Mountain (Keurig Green Mountain) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Keurig Green Mountain Inc (NAS:GMCR) » Definitions » ROC %

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Address

Website

http://www.keuriggreenmountain.com

Keurig Green Mountain Inc is a Delaware Corporation formed in July 1993. The Company is engaged in the coffee and coffeemaker businesses in the United States and Canada. It sells Keurig Single Cup brewers and roast high-quality Arabica bean coffees including single-origin, Fair Trade Certified, certified organic, flavored, limited edition and proprietary blends offered in K-Cup and Vue packs for use with its Keurig Single Cup brewers. The Company also offers traditional whole bean and ground coffee in other package types including bags, fractional packages and cans. In addition, it produces and sells other specialty beverages in portion packs including hot apple cider, hot and iced teas, iced coffees, iced fruit brews, hot cocoa and other dairy-based beverages. The Company manages its operations through three business segments, the Specialty Coffee business unit (SCBU), the Keurig business unit (KBU) and the Canadian business unit (CBU). Due to this combination, the results of U.S. operations, formerly reported in the SCBU and KBU segments, are reported in the Domestic segment and the results of Canadian operations are in the "Canada" segment. The Domestic segment sells single cup brewers and accessories, and sources, produces and sells coffee, hot cocoa, teas and other beverages in portion packs and coffee in more traditional packaging including bags and fractional packs to retailers including supermarkets, department stores, mass merchandisers, club stores, and convenience stores; to restaurants, hospitality accounts, office coffee distributors, and partner brand owners; and to consumers through Company websites. The Canada segment sells single cup brewers, accessories, and sources, produces and sells coffee, teas and other beverages in portion packs and coffee in more traditional packaging including bags, cans and fractional packs under a variety of brands to retailers including supermarkets, department stores, mass merchandisers, club stores, through office coffee services to offices, convenience stores, restaurants, hospitality accounts, and to consumers through its website. The Company's competitors in the coffee marketplace include large national and international companies and numerous local and regional companies.

Executives

Coca Cola Co	10 percent owner	ONE COCA COLA PLAZA, ATLANTA GA 30313
John D Hayes	director	AMERICAN EXPRESS COMPANY, 200 VESEY STREET, NEW YORK NY 10285
Mackay A D David	director
Robert Allan Steele	director	1 PROCTER & GAMBLE PLAZA, CINCINNATI OH 45202
Jose Octavio Reyes	director
Stephen L Gibbs	officer: VP, Chief Accounting Officer	C/O SCIENTIFIC GAMES CORPORATION, 1500 BLUEGRASS LAKES PARKWAY, ALPHARETTA, GA 30004
Susan S Kilsby	director	33 COFFEE LANE, WATERBURY VT 05676
Norman H Wesley	director	225 W WESTMINSTER, LAKE FOREST IL 60045
Brian P Kelley	director, officer: CEO and President	P.O. BOX 90608, AUSTIN TX 78709
Barbara D Carlini	director	C/O GREEN MOUNTAIN COFFEE ROASTERS INC 33 COFFEE LANE WATERBURY VT 05676
Robert Paul Ostryniec	officer: Chief Product Supply Officer	33 COFFEE LANE, WATERBURY VT 05676
Peter G Leemputte	officer: Chief Financial Officer	CHICAGO TITLE CORP, 171 N CLARK ST, CHICAGO IL 80601
Michael J Mardy	director
Frances G Rathke	officer: Chief Financial Officer	C/O GREEN MOUNTAIN COFFEE ROASTERS, INC., 33 COFFEE LANE, WATERBURY VT 05676
Sonia Galindo	officer: Corporate Secretary	C/O ROSETTA STONE, 1621 NORTH KENT STREET, SUITE 1200, ARLINGTON VA 22209