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Panera Bread Co ROC %

: 18.11% (As of Mar. 2017)
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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 %. Panera Bread Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2017 was 18.11%.

As of today (2021-05-06), Panera Bread Co's WACC % is 0.00%. Panera Bread Co's ROC % is 0.00% (calculated using TTM income statement data). Panera Bread Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Panera Bread Co 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.

Panera Bread Co Annual Data
Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 23.66 23.27 19.07 15.38 15.12

Panera Bread Co Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 14.38 14.20 13.42 18.31 18.11

Panera Bread Co ROC % Calculation

Panera Bread Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2016 is calculated as:

ROC % (A: Dec. 2016 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2015 ) + Invested Capital (A: Dec. 2016 ))/ count )
=239.763 * ( 1 - 36.71% )/( (992.703 + 1014.061)/ 2 )
=151.7460027/1003.382
=15.12 %

where

Invested Capital(A: 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))
=1475.318 - 379.269 - ( 241.886 - max(0, 399.443 - 502.789+241.886))
=992.703

Invested Capital(A: Dec. 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))
=1301.611 - 424.45 - ( 105.529 - max(0, 448.321 - 311.421+105.529))
=1014.061

Panera Bread Co's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2017 is calculated as:

ROC % (Q: Mar. 2017 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2016 ) + Invested Capital (Q: Mar. 2017 ))/ count )
=286.024 * ( 1 - 35.73% )/( (1014.061 + 1015.872)/ 2 )
=183.8276248/1014.9665
=18.11 %

where

Invested Capital(Q: Dec. 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))
=1301.611 - 424.45 - ( 105.529 - max(0, 448.321 - 311.421+105.529))
=1014.061

Invested Capital(Q: Mar. 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))
=1299.361 - 366.667 - ( 153.355 - max(0, 394.586 - 311.408+153.355))
=1015.872

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


Panera Bread Co  (NAS:PNRA) 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, Panera Bread Co's WACC % is 0.00%. Panera Bread Co's ROC % is 0.00% (calculated using TTM income statement data). Panera Bread Co 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.


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