Cohn Robbins Holdings (Cohn Robbins Holdings) ROC % : -1.61% (As of Sep. 2022)

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What is Cohn Robbins Holdings 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 %. Cohn Robbins Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2022 was -1.61%.

As of today (2024-06-12), Cohn Robbins Holdings's WACC % is 10.50%. Cohn Robbins Holdings's ROC % is -1.43% (calculated using TTM income statement data). Cohn Robbins Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cohn Robbins Holdings ROC % Historical Data

The historical data trend for Cohn Robbins Holdings'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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Cohn Robbins Holdings ROC % Chart

Cohn Robbins Holdings Annual Data

Trend

Dec20

Dec21

ROC %

-0.72

Cohn Robbins Holdings Quarterly Data
	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
ROC %	Get a 7-Day Free Trial					-0.46	-1.51	-1.63	-0.66	-1.61

Cohn Robbins Holdings ROC % Calculation

Cohn Robbins Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-5.999 * ( 1 - 0% )	/	( (828.483	+	829.425)	/ 2 )
=	-5.999	/	828.954
=	-0.72 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	829.43	-	0.303	-	( 0.644	-	max(0, 0.303	-	1.195	+	0.644	))
=	828.483

	Invested Capital		(A: Dec. 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	))
=	829.046	-	4.728	-	( 0.358	-	max(0, 5.728	-	0.621	+	0.358	))
=	829.425

Cohn Robbins Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2022 is calculated as:

	ROC % (Q: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Sep. 2022 ))	/ count )
=	-7.308 * ( 1 - 0% )	/	( (830.089	+	75.952)	/ 2 )
=	-7.308	/	453.0205
=	-1.61 %

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	))
=	829.165	-	8.942	-	( 0.001	-	max(0, 9.942	-	0.076	+	0.001	))
=	830.089

	Invested Capital		(Q: Sep. 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	))
=	74.962	-	3.097	-	( 0.001	-	max(0, 4.097	-	0.01	+	0.001	))
=	75.952

Note: The Operating Income data used here is four times the quarterly (Sep. 2022) data.

Cohn Robbins Holdings (OTCPK:CRHUF) 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, Cohn Robbins Holdings's WACC % is 10.50%. Cohn Robbins Holdings's ROC % is -1.43% (calculated using TTM income statement data). Cohn Robbins Holdings 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.

Cohn Robbins Holdings ROC % Related Terms

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Cohn Robbins Holdings (Cohn Robbins Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Cohn Robbins Holdings Corp (OTCPK:CRHUF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1000 North West Street, Suite 1200, Wilmington, DE, USA, 19801

Website

https://www.cohnrobbins.com

Cohn Robbins Holdings Corp is a blank check company.

Executives

Ppf Cyprus Management Ltd	10 percent owner	48, THEMISTOKLI DERVI STREET, ATHIENITIS CENTENNIAL BUILDING, OFFICE 6, NICOSIA G4 1066
Ppf Group N.v.	10 percent owner	STRAWINSKYLAAN 933, AMSTERDAM P7 1077XX
Renata Kellnerova	10 percent owner	BREZOVSKA 509, VRANE NAD VLTAVOU 2N 25246
Clifton S Robbins	director, 10 percent owner	646 STEAMBOAT ROAD, GREENWICH CT 06830
Anne Sheehan	director	THREE LIMITED PARKWAY, COLUMBUS OH 43230
C Robert Kidder	director	5400 LEGACY DR, H3 3E 35, PLANO TX 75024
Gary D Cohn	director, 10 percent owner	812 PARK AVENUE, 7-8A, NEW YORK NY 10021
Kathryn A. Hall	director	ONE MARITIME PLAZA, SIXTH FLOOR, SAN FRANCISCO CA 94111
Alexander T. Roberton	director, 10 percent owner	C/O CSR ACQUISITION CORP., 1000 N. WEST STREET, SUITE 1200, WILMINGTON DE 19801
Cohn Robbins Sponsor Llc	director, 10 percent owner	C/O CSR ACQUISITION CORP., 1000 N. WEST STREET, SUITE 1200, WILMINGTON DE 19801
Charles S. Kwon	officer: Chief Financial Officer	C/O CSR ACQUISITION CORP., 1000 N. WEST STREET, SUITE 1200, WILMINGTON DE 19801