Roadside Real Estate (LSE:ROAD) ROIC % : -10.81% (As of Dec. 2022)

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What is Roadside Real Estate ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Roadside Real Estate's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2022 was -10.81%.

As of today (2024-04-29), Roadside Real Estate's WACC % is 0.00%. Roadside Real Estate's ROIC % is 0.00% (calculated using TTM income statement data). Roadside Real Estate earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Roadside Real Estate ROIC % Historical Data

The historical data trend for Roadside Real Estate'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.

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Roadside Real Estate ROIC % Chart

Roadside Real Estate Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Jun21

ROIC %

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-6.42

-58.67

-416.00

-893.98

-17.47

Roadside Real Estate Semi-Annual Data
	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Dec20	Jun21	Dec21	Jun22	Dec22
ROIC %	Get a 7-Day Free Trial													-23.64	-4.66	-3.59	5.85	-10.81

Competitive Comparison of Roadside Real Estate's ROIC %

For the Restaurants subindustry, Roadside Real Estate'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.

Roadside Real Estate's ROIC % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Roadside Real Estate's ROIC % distribution charts can be found below:

* The bar in red indicates where Roadside Real Estate's ROIC % falls into.

Roadside Real Estate ROIC % Calculation

Roadside Real Estate's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2021 is calculated as:

	ROIC % (A: Jun. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2017 )	+	Invested Capital (A: Jun. 2021 ))	/ count )
=	-2.199 * ( 1 - 0% )	/	( (0.033	+	25.145)	/ 2 )
=	-2.199	/	12.589
=	-17.47 %

where

	Invested Capital		(A: Dec. 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	))
=	0.629	-	0.001	-	( 0.615	-	max(0, 0.034	-	0.629	+	0.615	))
=	0.033

	Invested Capital		(A: Jun. 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	))
=	22.585	-	4.7	-	( 0.084	-	max(0, 14.124	-	6.864	+	0.084	))
=	25.145

Roadside Real Estate's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2022 is calculated as:

	ROIC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	-2.822 * ( 1 - 0% )	/	( (23.217	+	28.987)	/ 2 )
=	-2.822	/	26.102
=	-10.81 %

where

	Invested Capital		(Q: Jun. 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	))
=	17.697	-	5.612	-	( 0.033	-	max(0, 19.07	-	7.938	+	0.033	))
=	23.217

	Invested Capital		(Q: Dec. 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	))
=	20.336	-	1.722	-	( 0.704	-	max(0, 17.268	-	6.895	+	0.704	))
=	28.987

Note: The Operating Income data used here is two times the semi-annual (Dec. 2022) data.

Roadside Real Estate (LSE:ROAD) 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, Roadside Real Estate's WACC % is 0.00%. Roadside Real Estate's ROIC % is 0.00% (calculated using TTM income statement data).

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.

Roadside Real Estate ROIC % Related Terms

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Roadside Real Estate (LSE:ROAD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Roadside Real Estate plc (LSE:ROAD) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

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Address

115b Innovation Drive, Milton, Milton, Oxford, GBR, OX14 4RZ

Website

https://www.barkbygroup.com

Barkby Group PLC is engaged in real estate development, consumer and hospitality businesses, and life sciences. Its operating segments include Real Estate; Barkby Pubs and Investments and the company generates majority of its revenue from Barkby Pubs.