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Value Line ROIC %

: 10.07% (As of Oct. 2021)
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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 %. Value Line's annualized return on invested capital (ROIC %) for the quarter that ended in Oct. 2021 was 10.07%.

As of today (2022-01-28), Value Line's WACC % is 1.27%. Value Line's ROIC % is 7.20% (calculated using TTM income statement data). Value Line 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.


Value Line ROIC % Historical Data

The historical data trend for Value Line'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.

Value Line Annual Data
Trend Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.53 3.96 4.97 7.76 6.38

Value Line Quarterly Data
Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21
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 7.42 8.32 2.80 7.80 10.07

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Value Line'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.

   

Value Line ROIC % Distribution

For the Capital Markets industry and Financial Services sector, Value Line's ROIC % distribution charts can be found below:

* The bar in red indicates where Value Line's ROIC % falls into.



Value Line ROIC % Calculation

Value Line's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Apr. 2021 is calculated as:

ROIC % (A: Apr. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Apr. 2020 ) + Invested Capital (A: Apr. 2021 ))/ count )
=7.535 * ( 1 - 23.11% )/( (89.176 + 92.48)/ 2 )
=5.7936615/90.828
=6.38 %

where

Value Line's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Oct. 2021 is calculated as:

ROIC % (Q: Oct. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2021 ) + Invested Capital (Q: Oct. 2021 ))/ count )
=10.948 * ( 1 - 17.66% )/( (91.115 + 87.946)/ 2 )
=9.0145832/89.5305
=10.07 %

where

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


Value Line  (NAS:VALU) 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, Value Line's WACC % is 1.27%. Value Line's ROIC % is 7.20% (calculated using TTM income statement data). Value Line 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. Value Line 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.


Value Line ROIC % Related Terms

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


Value Line Business Description

Value Line logo
Industry
Financial Services » Capital Markets NAICS : 523210 SIC : 7323
Traded in Other Exchanges
N/A
Address
551 Fifth Avenue, 3rd Floor, New York, NY, USA, 10176-0001
Value Line Inc is a U.S based company. It produces investment periodicals based on underlying research and making available copyright data, including ranking system and other information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. The company markets under well-known brands including Value Line, the Value Line logo, The Value Line Investment Survey, Smart Research, Smarter Investing and The Most Trusted Name in Investment Research. Its only operating segment being Publishing.
Executives
Fiore Alfred R director 1 ANGORA ROAD WESTPORT CT 06880
Brecher Howard A director, officer: Chairman and CEO VALUE LINE 220 E 42ND ST SUITE 600 NEW YORK NY 10017
Anastasio Stephen director, officer: Vice President and Treasurer 220 E 42ND STREET NEW YORK NY 10017
Muenzer Glenn J. director 357 HARVARD COURT EAST MEADOW NY 11554
Reed William Edward director 12 KNORR STREET NORWALK CT 06854
Bernstein Mary director 220 E 42ND STREET NEW YORK NY 10017
Davis Stephen P director 57 EAST 95TH STREET NEW YORK NY 10128
Sarkany Thomas director, officer: Secretary 220 EAST 42ND STREET 6TH FLOOR NEW YORK NY 10017
Perkins, Robert M. director 220 EAST 42ND STREET, 6TH FLOOR NEW YORK CITY NY 10017
Legon, Ruth O. director 220 EAST 42ND STREET, 6TH FLOOR NEW YORK CITY NY 10017
Appel Mitchell Eric officer: Chief Financial Officer VALUE LINE INC 220 EAST 42ND STREET 6TH FLOOR NEW YORK NY 10017
Arnold Bernhard & Co Inc 10 percent owner 220 EAST 42ND STREET 6TH FLOOR NEW YORK NY 10017
Eakman Janet director 220 E 42ND STREET NEW YORK NY 10017
Shanahan Edward J director 220 EAST 42 STREET NEW YORK NY 10017
Asher Marianne B director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ASHER MARIANNE B a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
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