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.

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Boohoo Group ROC % Chart

Boohoo Group Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

ROC %

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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															-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

	Invested Capital		(A: Feb. 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	))
=	1225.7	-	118.8	-	( 330.9	-	max(0, 337.8	-	547.1	+	330.9	))
=	897.6

	Invested Capital		(A: Feb. 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	))
=	1075.4	-	173	-	( 230	-	max(0, 332	-	474.2	+	230	))
=	760.2

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

	Invested Capital		(Q: Feb. 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	))
=	1075.4	-	173	-	( 230	-	max(0, 332	-	474.2	+	230	))
=	760.2

	Invested Capital		(Q: Aug. 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	))
=	823	-	134.9	-	( 133.7	-	max(0, 329.1	-	339.9	+	133.7	))
=	677.3

Note: The Operating Income data used here is two times the semi-annual (Aug. 2024) data.

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

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Boohoo Group PLC (AQSE:BOO.GB) » Definitions » ROC %

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BHOOY:USA BOO:UK 1B9:Germany

Address

49-51 Dale Street, Manchester, GBR, M1 2HF

Website

https://www.boohooplc.com

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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