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Academy Sports and Outdoors (NAS:ASO) ROIC %

: 16.38% (As of Oct. 2022)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Academy Sports and Outdoors's annualized return on invested capital (ROIC %) for the quarter that ended in Oct. 2022 was 16.38%.

As of today (2022-12-10), Academy Sports and Outdoors's WACC % is 6.05%. Academy Sports and Outdoors's ROIC % is 19.61% (calculated using TTM income statement data). Academy Sports and Outdoors generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Academy Sports and Outdoors (NAS:ASO) ROIC % Historical Data

The historical data trend for Academy Sports and Outdoors's ROIC % 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.

* Premium members only.

Academy Sports and Outdoors Annual Data
Trend Jan18 Jan19 Jan20 Jan21 Jan22
ROIC % - 4.46 5.57 11.27 22.40

Academy Sports and Outdoors Quarterly Data
Jan18 Jan19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22
ROIC % 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 21.76 18.87 19.60 23.83 16.38

Academy Sports and Outdoors (NAS:ASO) ROIC % Competitive Comparison

For the Specialty Retail subindustry, Academy Sports and Outdoors's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Academy Sports and Outdoors (NAS:ASO) ROIC % Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Academy Sports and Outdoors's ROIC % distribution charts can be found below:

* The bar in red indicates where Academy Sports and Outdoors's ROIC % falls into.



Academy Sports and Outdoors ROIC % Calculation

Academy Sports and Outdoors's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jan. 2022 is calculated as:

ROIC % (A: Jan. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jan. 2021 ) + Invested Capital (A: Jan. 2022 ))/ count )
=907.947 * ( 1 - 21.89% )/( (3152.729 + 3178.699)/ 2 )
=709.1974017/3165.714
=22.40 %

where

Invested Capital(A: Jan. 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))
=4384.482 - 983.826 - ( 377.604 - max(0, 1167.093 - 1415.02+377.604))
=3152.729

Invested Capital(A: Jan. 2022 )
=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))
=4584.94 - 920.243 - ( 485.998 - max(0, 1127.11 - 1715.747+485.998))
=3178.699

Academy Sports and Outdoors's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Oct. 2022 is calculated as:

ROIC % (Q: Oct. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2022 ) + Invested Capital (Q: Oct. 2022 ))/ count )
=718.088 * ( 1 - 22.46% )/( (3330.734 + 3467.275)/ 2 )
=556.8054352/3399.0045
=16.38 %

where

Invested Capital(Q: Jul. 2022 )
=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))
=4653.969 - 923.378 - ( 399.857 - max(0, 1119.627 - 1767.145+399.857))
=3330.734

Invested Capital(Q: Oct. 2022 )
=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))
=4782.464 - 997.022 - ( 318.167 - max(0, 1191.211 - 1875.633+318.167))
=3467.275

Note: The Operating Income data used here is four times the quarterly (Oct. 2022) 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.


Academy Sports and Outdoors  (NAS:ASO) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Academy Sports and Outdoors's WACC % is 6.05%. Academy Sports and Outdoors's ROIC % is 19.61% (calculated using TTM income statement data). Academy Sports and Outdoors generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. Academy Sports and Outdoors 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 %, ROIC % 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.


Academy Sports and Outdoors ROIC % Related Terms

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Academy Sports and Outdoors (NAS:ASO) Business Description

Academy Sports and Outdoors logo
Traded in Other Exchanges
N/A
Address
1800 North Mason Road, Katy, TX, USA, 77449
Academy Sports and Outdoors Inc is engaged in the retail business of sporting goods and outdoor recreation products. The company offers outdoor clothing, backpacks, sunglasses, luggage items, shooting equipment, fishing equipment, boating and water sports equipment, backyard recreation products, outdoor cooking equipment, fitness equipment, electronic items, dog supplies, and other products.
Executives
Turner Christopher Lee director 1441 GARDINER LANE LOUISVILLE KY 40213
Turney Sharen J director THREE LIMITED PARKWAY COLUMBUS OH 43230
Raff Beryl director 5555 DARROW RD HUDSON OH 44236
Nealon Thomas M director 6501 LEGACY DRIVE PLANO TX 75024
Harriman Sherry L. officer: SVP, Logistics & Supply Chain C/O ACADEMY SPORTS AND OUTDOORS, INC. 1800 N MASON ROAD KATY TX 77449
Beck Wendy A. director C/O NORWEGIAN CRUISE LINE HOLDINGS LTD. 7665 CORPORATE CENTER DRIVE MIAMI FL 33126
Allstar Llc 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Kkr 2006 Allstar Blocker L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Kkr 2006 Fund (allstar) L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Davis Heather A. officer: VP, Controller C/O ACADEMY SPORTS AND OUTDOORS, INC. 1800 NORTH MASON ROAD KATY TX 77449
Allstar Co-invest Gp Llc 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Tweedy Jeffrey C. director C/O ACADEMY SPORTS AND OUTDOORS, INC. 1800 NORTH MASON ROAD KATY TX 77449
Allstar Co-invest Blocker L.p. 10 percent owner C/O KOHLBERG KRAVIS ROBERTS & CO. L.P. 30 HUDSON YARDS NEW YORK NY 10001
Ennis William S. officer: See Remarks C/O ACADEMY SPORTS AND OUTDOORS, INC. 1800 NORTH MASON ROAD KATY TX 77449
Patel Vishal director C/O US FOODS HOLDING CORP. 9399 W. HIGGINS RD. ROSEMONT IL 60018

Academy Sports and Outdoors (NAS:ASO) Headlines

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