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Phoenix Group (ADX:PHX) ROC % : 6.56% (As of Sep. 2024)


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What is Phoenix Group ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Phoenix Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 6.56%.

As of today (2024-12-15), Phoenix Group's WACC % is 11.52%. Phoenix Group's ROC % is 6.73% (calculated using TTM income statement data). Phoenix Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Phoenix Group ROC % Historical Data

The historical data trend for Phoenix Group's ROC % 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.

Phoenix Group ROC % Chart

Phoenix Group Annual Data
Trend Dec21 Dec22 Dec23
ROC %
43.18 88.77 12.61

Phoenix Group Quarterly Data
Dec21 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC % Get a 7-Day Free Trial Premium Member Only 101.23 25.21 -1.06 4.12 6.56

Phoenix Group ROC % Calculation

Phoenix Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=184.871 * ( 1 - 0% )/( (799.344 + 2132.28)/ 2 )
=184.871/1465.812
=12.61 %

where

Invested Capital(A: Dec. 2023 )
=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))
=3063.27 - 203.137 - ( 727.853 - max(0, 485.243 - 2236.872+727.853))
=2132.28

Phoenix Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=246.544 * ( 1 - 9.17% )/( (3315.096 + 3509.9)/ 2 )
=223.9359152/3412.498
=6.56 %

where

Invested Capital(Q: Jun. 2024 )
=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))
=3377.503 - 18.508 - ( 43.899 - max(0, 339.033 - 2638.25+43.899))
=3315.096

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) 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.


Phoenix Group  (ADX:PHX) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Phoenix Group's WACC % is 11.52%. Phoenix Group's ROC % is 6.73% (calculated using TTM income statement data). Phoenix Group 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 %, ROC % 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.


Phoenix Group ROC % Related Terms

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Phoenix Group Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
No. 3412. ResCo-Work 10, 34 Floor, Al Maqam Tower, ADGM Square, Al Maryah Island, Abu Dhabi, ARE
Phoenix Group PLC is a technology conglomerate bringing blockchain solutions to an expansive market. The Group develops, operates, and manages specialized data centres, hosting class performance computing power for digital asset across the UAE, Oman, U.S. and Canada. Additionally, it also hosts, operates and maintains equipment within its existing data centres and enables investment opportunities within cloud mining. The Group is the exclusive distributor of equipment manufacturer MicroBT and prominent distributor of Digital wallet Ledgers and CoolWallets, across the Middle East. The Group has four business verticals including trading, hosting, mining and investments.