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Franklin Covey Co ROIC %

: 3.92% (As of Aug. 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 %. Franklin Covey Co's annualized return on invested capital (ROIC %) for the quarter that ended in Aug. 2021 was 3.92%.

As of today (2021-12-03), Franklin Covey Co's WACC % is 11.09%. Franklin Covey Co's ROIC % is 9.63% (calculated using TTM income statement data). Franklin Covey Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Franklin Covey Co ROIC % Historical Data

The historical data trend for Franklin Covey Co'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.

Franklin Covey Co Annual Data
Trend Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.84 -1.94 -2.42 -29.53 8.79

Franklin Covey Co Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 3.76 -0.47 -0.28 34.06 3.92

Competitive Comparison

For the Consulting Services subindustry, Franklin Covey Co'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.

   

Franklin Covey Co ROIC % Distribution

For the Business Services industry and Industrials sector, Franklin Covey Co's ROIC % distribution charts can be found below:

* The bar in red indicates where Franklin Covey Co's ROIC % falls into.



Franklin Covey Co ROIC % Calculation

Franklin Covey Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Aug. 2021 is calculated as:

ROIC % (A: Aug. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Aug. 2020 ) + Invested Capital (A: Aug. 2021 ))/ count )
=8.101 * ( 1 - -124.25% )/( (187.648 + 225.512)/ 2 )
=18.1664925/206.58
=8.79 %

where

Invested Capital(A: Aug. 2020 )
=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))
=205.437 - 18.653 - ( 27.137 - max(0, 102.528 - 101.664+27.137))
=187.648

Invested Capital(A: Aug. 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))
=249.654 - 23.973 - ( 47.417 - max(0, 136.539 - 136.708+47.417))
=225.512

Franklin Covey Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Aug. 2021 is calculated as:

ROIC % (Q: Aug. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: May. 2021 ) + Invested Capital (Q: Aug. 2021 ))/ count )
=17.252 * ( 1 - 53.23% )/( (186.396 + 225.512)/ 2 )
=8.0687604/205.954
=3.92 %

where

Invested Capital(Q: Aug. 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))
=249.654 - 23.973 - ( 47.417 - max(0, 136.539 - 136.708+47.417))
=225.512

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


Franklin Covey Co  (NYSE:FC) 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, Franklin Covey Co's WACC % is 11.09%. Franklin Covey Co's ROIC % is 9.63% (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.


Franklin Covey Co ROIC % Related Terms

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Franklin Covey Co Business Description

Franklin Covey Co logo
Industry
Industrials » Business Services NAICS : 541611 SIC : 8742
Traded in Other Exchanges
N/A
Address
2200 West Parkway Boulevard, Salt Lake City, UT, USA, 84119-2331
Franklin Covey Co is a global company focused on organizational performance improvement. It focuses on providing time management and effectiveness training for individuals and corporations via online training as well as in-person workshops and events. The company provides training and consulting services in the areas of leadership, execution, productivity, trust, sales performance, customer loyalty, and educational improvement. It operates in the business segments of Direct Offices, Education practice and International Licensees. The company derives revenue from providing training and consulting services, and through the selling of books, audio media, and other related products. It has a business presence in the United States and other international countries.
Executives
Whitman Robert A director, officer: Chief Executive Officer 4200 TEXAS COMMERCE TOWER WEST 2200 ROSS AVE DALLAS TX 75201
Young Stephen D officer: Chief Financial Officer PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: YOUNG STEPHEN D 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;}
Davis Clifton Todd officer: VP People Services 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Covey Michael Sean Merrill officer: SVP Innovations and Marketing 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Miller Scott Jeffery officer: EVP Bus Development/Marketing 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Dom Colleen D officer: EVP Operations 2200 WEST PARKWAY BLVD SALT LAKE CITY UT 84119
Walker Paul S officer: EVP, Direct Offices Division 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Stepp Esther Kay director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: STEPP ESTHER KAY 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;}
Phillips Nancy R director 1515 BROADWAY NEW YORK NY 10036
Fung Michael director 2200 WEST PARKWAY BLVD SALT LAKE CITY UT 84119
Mcnamara Donald J director 4200 TEXAS COMMERCE TOWER WEST 2200 ROSS AVE SUITE 4200 DALLAS TX 75201
Chow Anne H director 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Heiner Dennis Grant director 2220 WEST PARKWAY BLVD SALT LAKE CITY UT 84119
Van Bever Derek C M director 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Peterson Joel Clinton director C/O JETBLUE AIRWAYS CORPORATION 27-01 QUEENS PLAZA NORTH LONG ISLAND CITY NY 11101

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