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Boohoo Group (AQSE:BOO.GB) ROC % : -9.42% (As of Aug. 2024)


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What is Boohoo 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 %. Boohoo Group's annualized return on capital (ROC %) for the quarter that ended in Aug. 2024 was -9.42%.

As of today (2025-03-15), Boohoo Group's WACC % is 10.71%. Boohoo Group's ROC % is -19.01% (calculated using TTM income statement data). Boohoo Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Boohoo Group ROC % Historical Data

The historical data trend for Boohoo 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.

Boohoo Group ROC % Chart

Boohoo Group Annual Data
Trend Feb15 Feb16 Feb17 Feb18 Feb19 Feb20 Feb21 Feb22 Feb23 Feb24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 23.95 21.64 -0.69 -7.75 -15.65

Boohoo Group Semi-Annual Data
Feb15 Aug15 Feb16 Aug16 Feb17 Aug17 Feb18 Aug18 Feb19 Aug19 Feb20 Aug20 Feb21 Aug21 Feb22 Aug22 Feb23 Aug23 Feb24 Aug24
ROC % Get a 7-Day Free Trial 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 -2.15 -13.54 -4.22 -26.74 -9.42

Boohoo Group ROC % Calculation

Boohoo Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Feb. 2024 is calculated as:

ROC % (A: Feb. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Feb. 2023 ) + Invested Capital (A: Feb. 2024 ))/ count )
=-147.2 * ( 1 - 11.88% )/( (897.6 + 760.2)/ 2 )
=-129.71264/828.9
=-15.65 %

where

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

ROC % (Q: Aug. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2024 ) + Invested Capital (Q: Aug. 2024 ))/ count )
=-71.8 * ( 1 - 5.7% )/( (760.2 + 677.3)/ 2 )
=-67.7074/718.75
=-9.42 %

where

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


Boohoo Group  (AQSE:BOO.GB) 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, Boohoo Group's WACC % is 10.71%. Boohoo Group's ROC % is -19.01% (calculated using TTM income statement data). Boohoo 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.


Boohoo Group ROC % Related Terms

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Boohoo Group Business Description

Traded in Other Exchanges
Address
49-51 Dale Street, Manchester, GBR, M1 2HF
Boohoo Group PLC is an online fashion retailer catering to young people in the UK and internationally. The company markets and retails its own-brand clothing and accessories through its website www.boohoo.com. Its brands include boohoo, PrettyLittleThing, Nasty Gal, and Others. The company's geographical segment includes the United Kingdom; the Rest of Europe; the USA and the Rest of the world. It derives a majority of its revenue from the United Kingdom. Its product offering includes clothing, footwear, and related fashion accessories.

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