Close The Loop (ASX:CLG) ROC % : 0.28% (As of Dec. 2024)

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What is Close The Loop 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 %. Close The Loop's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was 0.28%.

As of today (2025-03-16), Close The Loop's WACC % is 7.67%. Close The Loop's ROC % is 3.88% (calculated using TTM income statement data). Close The Loop earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Close The Loop ROC % Historical Data

The historical data trend for Close The Loop'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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Close The Loop ROC % Chart

Close The Loop Annual Data

Trend

Jun22

Jun23

Jun24

ROC %

8.23

9.37

6.68

Close The Loop Semi-Annual Data
	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
ROC %	Get a 7-Day Free Trial			11.41	12.44	7.05	5.82	0.28

Close The Loop ROC % Calculation

Close The Loop's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2024 is calculated as:

	ROC % (A: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2023 )	+	Invested Capital (A: Jun. 2024 ))	/ count )
=	18.342 * ( 1 - 20.82% )	/	( (199.378	+	235.457)	/ 2 )
=	14.5231956	/	217.4175
=	6.68 %

where

	Invested Capital		(A: Jun. 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	))
=	271.379	-	29.18	-	( 49.458	-	max(0, 53.816	-	96.637	+	49.458	))
=	199.378

	Invested Capital		(A: 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	))
=	297.002	-	20.901	-	( 40.644	-	max(0, 45.527	-	99.762	+	40.644	))
=	235.457

Close The Loop's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	1.974 * ( 1 - 65.58% )	/	( (235.457	+	245.303)	/ 2 )
=	0.6794508	/	240.38
=	0.28 %

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	))
=	297.002	-	20.901	-	( 40.644	-	max(0, 45.527	-	99.762	+	40.644	))
=	235.457

	Invested Capital		(Q: Dec. 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	))
=	303.989	-	20.891	-	( 37.795	-	max(0, 46.995	-	104.626	+	37.795	))
=	245.303

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

Close The Loop (ASX:CLG) 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, Close The Loop's WACC % is 7.67%. Close The Loop's ROC % is 3.88% (calculated using TTM income statement data). Close The Loop 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.

Close The Loop ROC % Related Terms

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Close The Loop Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Waste Management » Close The Loop Ltd (ASX:CLG) » Definitions » ROC %

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Traded in Other Exchanges

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Address

43-47 Cleeland Road, Oakleigh South, Melbourne, VIC, AUS, 3167

Website

https://www.ctlgroup.com.au

Close The Loop Ltd provides reuse, recycling, and sustainability solutions. The company has developed a battery collection and recycling solution in Australia. The group has two operating segments based on differences in products and services provided: resource recovery and packaging.

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