>
Switch to:

Synnex ROC %

: 8.93% (As of Feb. 2021)
View and export this data going back to 2003. 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 %. Synnex's annualized return on capital (ROC %) for the quarter that ended in Feb. 2021 was 8.93%.

As of today (2021-04-13), Synnex's WACC % is 9.89%. Synnex's ROC % is 8.88% (calculated using TTM income statement data). Synnex earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Synnex ROC % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.

* Premium members only.

Synnex Annual Data
Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
ROC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.47 9.41 6.32 8.07 8.59

Synnex Quarterly Data
May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21
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 4.39 4.12 8.21 13.07 8.93

Synnex ROC % Calculation

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

ROC % (A: Nov. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Nov. 2019 ) + Invested Capital (A: Nov. 2020 ))/ count )
=830.102 * ( 1 - 24.84% )/( (7567.049 + 6955.331)/ 2 )
=623.9046632/7261.19
=8.59 %

where

Invested Capital(A: Nov. 2019 )
=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))
=11697.96 - 3905.382 - ( 225.529 - max(0, 4607.122 - 7452.992+225.529))
=7567.049

Invested Capital(A: Nov. 2020 )
=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))
=13468.59 - 4948.587 - ( 1564.672 - max(0, 5630.092 - 8769.127+1564.672))
=6955.331

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

ROC % (Q: Feb. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2020 ) + Invested Capital (Q: Feb. 2021 ))/ count )
=566.988 * ( 1 - 25.31% )/( (6955.331 + 2524.801)/ 2 )
=423.4833372/4740.066
=8.93 %

where

Invested Capital(Q: Nov. 2020 )
=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))
=13468.59 - 4948.587 - ( 1564.672 - max(0, 5630.092 - 8769.127+1564.672))
=6955.331

Invested Capital(Q: Feb. 2021 )
=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))
=7726.033 - 3757.484 - ( 1443.748 - max(0, 3968.308 - 6804.611+1443.748))
=2524.801

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

* All numbers are in millions except for per share data and ratio. All numbers are indicated in the company's associated stock exchange currency.


Synnex  (NYSE:SNX) 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, Synnex's WACC % is 9.89%. Synnex's ROC % is 8.88% (calculated using TTM income statement data). Synnex 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.


Synnex ROC % Related Terms


Synnex 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)