Alloggio Group (ASX:ALO) ROC % : 1.80% (As of Dec. 2022)

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What is Alloggio 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 %. Alloggio Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2022 was 1.80%.

As of today (2024-06-24), Alloggio Group's WACC % is 0.00%. Alloggio Group's ROC % is 0.00% (calculated using TTM income statement data). Alloggio Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Alloggio Group ROC % Historical Data

The historical data trend for Alloggio 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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Alloggio Group ROC % Chart

Alloggio Group Annual Data

Trend

Jun21

Jun22

ROC %

4.30

Alloggio Group Semi-Annual Data
	Dec21	Jun22	Dec22
ROC %	2.37	5.33	1.80

Alloggio Group ROC % Calculation

Alloggio Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2022 is calculated as:

	ROC % (A: Jun. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2021 )	+	Invested Capital (A: Jun. 2022 ))	/ count )
=	4.937 * ( 1 - 40.68% )	/	( (44.243	+	92.046)	/ 2 )
=	2.9286284	/	68.1445
=	4.30 %

where

	Invested Capital		(A: Jun. 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	))
=	58.629	-	1.248	-	( 17.515	-	max(0, 5.566	-	18.704	+	17.515	))
=	44.243

	Invested Capital		(A: Jun. 2022 )
=	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	))
=	92.668	-	1.877	-	( 21.319	-	max(0, 25.018	-	23.763	+	21.319	))
=	92.046

Alloggio Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2022 is calculated as:

	ROC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	1.994 * ( 1 - 0% )	/	( (92.046	+	129.705)	/ 2 )
=	1.994	/	110.8755
=	1.80 %

where

	Invested Capital		(Q: Jun. 2022 )
=	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	))
=	92.668	-	1.877	-	( 21.319	-	max(0, 25.018	-	23.763	+	21.319	))
=	92.046

	Invested Capital		(Q: Dec. 2022 )
=	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	))
=	125.76	-	2.516	-	( 37.504	-	max(0, 49.502	-	43.041	+	37.504	))
=	129.705

Note: The Operating Income data used here is two times the semi-annual (Dec. 2022) data.

Alloggio Group (ASX:ALO) 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, Alloggio Group's WACC % is 0.00%. Alloggio Group's ROC % is 0.00% (calculated using TTM income statement data). Alloggio 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.

Alloggio Group ROC % Related Terms

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Alloggio Group (ASX:ALO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Alloggio Group Ltd (ASX:ALO) » Definitions » ROC %

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Traded in Other Exchanges

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Address

840 Hunter Street, Newcastle, NSW, AUS, 2300

Website

https://www.alloggio.com.au

Alloggio Group Ltd is an operator of short-term rental accommodation on the east coast of Australia with a current portfolio of over 879 holiday properties and approx 13 mid-market hotels which comprise of aorund 428 rooms.