Moonpig Group (CHIX:MOONL) ROC % : -23.70% (As of Oct. 2024)

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What is Moonpig 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 %. Moonpig Group's annualized return on capital (ROC %) for the quarter that ended in Oct. 2024 was -23.70%.

As of today (2025-03-29), Moonpig Group's WACC % is 11.54%. Moonpig Group's ROC % is 11.07% (calculated using TTM income statement data). Moonpig Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Moonpig Group ROC % Historical Data

The historical data trend for Moonpig 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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Moonpig Group ROC % Chart

Moonpig Group Annual Data

Trend

Apr18

Apr19

Apr20

Apr21

Apr22

Apr23

Apr24

ROC %

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34.39

25.27

45.41

17.65

15.09

Moonpig Group Semi-Annual Data
	Apr18	Apr19	Oct19	Apr20	Oct20	Apr21	Oct21	Apr22	Oct22	Apr23	Oct23	Apr24	Oct24
ROC %	Get a 7-Day Free Trial								9.33	15.92	12.69	17.85	-23.70

Moonpig Group ROC % Calculation

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

	ROC % (A: Apr. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Apr. 2023 )	+	Invested Capital (A: Apr. 2024 ))	/ count )
=	64.935 * ( 1 - 26.36% )	/	( (324.128	+	309.751)	/ 2 )
=	47.818134	/	316.9395
=	15.09 %

where

	Invested Capital		(A: Apr. 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	))
=	289.705	-	41.148	-	( 22.394	-	max(0, 118.6	-	43.029	+	22.394	))
=	324.128

	Invested Capital		(A: Apr. 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	))
=	258.532	-	32.876	-	( 9.644	-	max(0, 110.361	-	26.266	+	9.644	))
=	309.751

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

	ROC % (Q: Oct. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Apr. 2024 )	+	Invested Capital (Q: Oct. 2024 ))	/ count )
=	-55.966 * ( 1 - -15.63% )	/	( (309.751	+	236.323)	/ 2 )
=	-64.7134858	/	273.037
=	-23.70 %

where

	Invested Capital		(Q: Apr. 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	))
=	258.532	-	32.876	-	( 9.644	-	max(0, 110.361	-	26.266	+	9.644	))
=	309.751

	Invested Capital		(Q: Oct. 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	))
=	197.416	-	22.465	-	( 12.407	-	max(0, 89.779	-	28.407	+	12.407	))
=	236.323

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

Moonpig Group (CHIX:MOONl) 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, Moonpig Group's WACC % is 11.54%. Moonpig Group's ROC % is 11.07% (calculated using TTM income statement data). Moonpig 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.

Moonpig Group ROC % Related Terms

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Moonpig Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Moonpig Group PLC (CHIX:MOONl) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

MOON:UK 769:Germany

Address

10 Back Hill, Herbal House, London, GBR, EC1R 5EN

Website

https://www.moonpig.group

Moonpig Group PLC operates in the gifting market. The company is an online greeting cards and gifting platform, comprising the Moonpig, Red Letter Days, and Buyagift brands in the UK and the Greetz brand in the Netherlands. Its products and services include a range of cards, a curated range of gifts, personalization features, and next-day delivery offerings. The company's operating segments are Moonpig which derives key revenue, Greetz, and Experiences. Geographically, the company generates maximum revenue from the United Kingdom and the rest from Netherlands, Ireland, the United States, and Australia.

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