CWLPF (Caldwell Partners International) ROC % : 2.14% (As of Aug. 2024)

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What is Caldwell Partners International 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 %. Caldwell Partners International's annualized return on capital (ROC %) for the quarter that ended in Aug. 2024 was 2.14%.

As of today (2024-12-12), Caldwell Partners International's WACC % is 3.59%. Caldwell Partners International's ROC % is -1.89% (calculated using TTM income statement data). Caldwell Partners International earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Caldwell Partners International ROC % Historical Data

The historical data trend for Caldwell Partners International'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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Caldwell Partners International ROC % Chart

Caldwell Partners International Annual Data

Trend

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Aug24

ROC %

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34.59

31.41

28.44

-5.81

-1.71

Caldwell Partners International Quarterly Data
	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
ROC %	Get a 7-Day Free Trial															9.69	-17.57	-10.80	22.82	2.14

Caldwell Partners International ROC % Calculation

Caldwell Partners International's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2024 is calculated as:

	ROC % (A: Aug. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2023 )	+	Invested Capital (A: Aug. 2024 ))	/ count )
=	-0.674 * ( 1 - 32.98% )	/	( (31.187	+	21.776)	/ 2 )
=	-0.4517148	/	26.4815
=	-1.71 %

where

	Invested Capital		(A: Aug. 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	))
=	62.802	-	23.42	-	( 16.362	-	max(0, 25.998	-	34.193	+	16.362	))
=	31.187

	Invested Capital		(A: 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	))
=	50.349	-	21.554	-	( 14.379	-	max(0, 22.758	-	29.777	+	14.379	))
=	21.776

Caldwell Partners International'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: May. 2024 )	+	Invested Capital (Q: Aug. 2024 ))	/ count )
=	0.208 * ( 1 - -126.97% )	/	( (22.445	+	21.776)	/ 2 )
=	0.4720976	/	22.1105
=	2.14 %

where

	Invested Capital		(Q: May. 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	))
=	50.796	-	21.459	-	( 12.687	-	max(0, 22.703	-	29.595	+	12.687	))
=	22.445

	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	))
=	50.349	-	21.554	-	( 14.379	-	max(0, 22.758	-	29.777	+	14.379	))
=	21.776

Note: The Operating Income data used here is four times the quarterly (Aug. 2024) data.

Caldwell Partners International (OTCPK:CWLPF) 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, Caldwell Partners International's WACC % is 3.59%. Caldwell Partners International's ROC % is -1.89% (calculated using TTM income statement data). Caldwell Partners International 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.

Caldwell Partners International ROC % Related Terms

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Caldwell Partners International Business Description

Industry

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CWL:Canada

Address

79 Wellington Street West, Suite 2410, TD South Tower, Toronto, ON, CAN, M5K 1E7

Website

https://www.caldwell.com

Caldwell Partners International Inc is a provider of executive search that specializes in the recruitment of executives for full-time and advisory roles. The company contracts with its clients, on an assignment basis providing advice on the identification, evaluation, assessment, and recommendation of qualified candidates for filling of senior executive positions. It recruits employees for various positions that include Board Services, Human Resources, Information Security, Legal, Marketing, Industrial, Insurance, Healthcare, Media, Real Estate, Technology, etc. The company operates through two segments; Caldwell and IQTalent, out of which the majority revenue is generated from Caldwell segment. The company's operations are spread across Canada, the United States, Asia Pacific, and Europe.