GURUFOCUS.COM » STOCK LIST » USA » NAS » Liberty Formula One Group (NAS:FWONA) » Definitions » ROIC %
Switch to:

Liberty Formula One Group ROIC %

: 1.79% (As of Jun. 2022)
View and export this data going back to 2013. Start your Free Trial

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Liberty Formula One Group's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2022 was 1.79%.

As of today (2022-08-16), Liberty Formula One Group's WACC % is 8.06%. Liberty Formula One Group's ROIC % is 3.94% (calculated using TTM income statement data). Liberty Formula One Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Liberty Formula One Group ROIC % Historical Data

The historical data trend for Liberty Formula One Group'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.

Liberty Formula One Group Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.48 -0.75 -0.25 -3.68 0.31

Liberty Formula One Group Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.14 -21.60 2.37 0.77 1.79

Competitive Comparison

For the Entertainment subindustry, Liberty Formula One Group'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.

   

Liberty Formula One Group ROIC % Distribution

For the Media - Diversified industry and Communication Services sector, Liberty Formula One Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Liberty Formula One Group's ROIC % falls into.



Liberty Formula One Group ROIC % Calculation

Liberty Formula One Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:

ROIC % (A: Dec. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2020 ) + Invested Capital (A: Dec. 2021 ))/ count )
=40 * ( 1 - 23.57% )/( (9412 + 10266)/ 2 )
=30.572/9839
=0.31 %

where

Liberty Formula One Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2022 is calculated as:

ROIC % (Q: Jun. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2022 ) + Invested Capital (Q: Jun. 2022 ))/ count )
=196 * ( 1 - 5.08% )/( (10553 + 10203)/ 2 )
=186.0432/10378
=1.79 %

where

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


Liberty Formula One Group  (NAS:FWONA) 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, Liberty Formula One Group's WACC % is 8.06%. Liberty Formula One Group's ROIC % is 3.94% (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.


Liberty Formula One Group ROIC % Related Terms

Thank you for viewing the detailed overview of Liberty Formula One Group's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Liberty Formula One Group Business Description

Liberty Formula One Group logo
Traded in Other Exchanges
Address
12300 Liberty Boulevard, Englewood, CO, USA, 80112
Formula One Group controls the exclusive commercial and promotional rights to the FIA Formula One World Championship series, and the monetization of those rights is the primary business of the group. The firm is responsible for development and promotion of the Formula One race series in concert with its three partners: the FIA (the regulatory body), the teams that participate in the series, and the series' commercial partners, which include the race promoters, broadcasters, sponsors, and advertisers. Formula One Group is a subsidiary of Liberty Media Corporation, which purchased the firm in January 2017. Formula One stock is a tracking stock for the assets under Formula One Group with Liberty Media.

Liberty Formula One Group Headlines

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)