JDWPY (Wetherspoon (J D)) ROC % : -80.05% (As of Jul. 2024)

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What is Wetherspoon (J D) 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 %. Wetherspoon (J D)'s annualized return on capital (ROC %) for the quarter that ended in Jul. 2024 was -80.05%.

As of today (2024-12-11), Wetherspoon (J D)'s WACC % is 6.72%. Wetherspoon (J D)'s ROC % is 6.07% (calculated using TTM income statement data). Wetherspoon (J D) earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Wetherspoon (J D) ROC % Historical Data

The historical data trend for Wetherspoon (J D)'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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Wetherspoon (J D) ROC % Chart

Wetherspoon (J D) Annual Data

Trend

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Jul24

ROC %

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0.87

-4.91

1.80

3.59

5.94

Wetherspoon (J D) Semi-Annual Data
	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24	Jul24
ROC %	Get a 7-Day Free Trial															3.78	59.89	-57.62	74.09	-80.05

Wetherspoon (J D) ROC % Calculation

Wetherspoon (J D)'s annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2024 is calculated as:

	ROC % (A: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2023 )	+	Invested Capital (A: Jul. 2024 ))	/ count )
=	184.87 * ( 1 - 19.52% )	/	( (2546.028	+	2462.835)	/ 2 )
=	148.783376	/	2504.4315
=	5.94 %

where

	Invested Capital		(A: Jul. 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	))
=	2551.423	-	299.399	-	( 112.336	-	max(0, 499.043	-	205.039	+	112.336	))
=	2546.028

	Invested Capital		(A: Jul. 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	))
=	2450.927	-	283.138	-	( 73.659	-	max(0, 452.238	-	157.192	+	73.659	))
=	2462.835

Wetherspoon (J D)'s annualized Return on Capital (ROC %) for the quarter that ended in Jul. 2024 is calculated as:

	ROC % (Q: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jan. 2024 )	+	Invested Capital (Q: Jul. 2024 ))	/ count )
=	-2191.668 * ( 1 - 12.59% )	/	( (2323.552	+	2462.835)	/ 2 )
=	-1915.7369988	/	2393.1935
=	-80.05 %

where

	Invested Capital		(Q: Jan. 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	))
=	2401.813	-	357.426	-	( 61.409	-	max(0, 425.18	-	146.015	+	61.409	))
=	2323.552

	Invested Capital		(Q: Jul. 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	))
=	2450.927	-	283.138	-	( 73.659	-	max(0, 452.238	-	157.192	+	73.659	))
=	2462.835

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

Wetherspoon (J D) (OTCPK:JDWPY) 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, Wetherspoon (J D)'s WACC % is 6.72%. Wetherspoon (J D)'s ROC % is 6.07% (calculated using TTM income statement data). Wetherspoon (J D) 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.

Wetherspoon (J D) ROC % Related Terms

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Wetherspoon (J D) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Wetherspoon (J D) PLC (OTCPK:JDWPY) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

JDWl:UK JDW:UK 0QW:Germany

Address

Wetherspoon House, Central Park, Reeds Crescent, Watford, GBR, WD24 4WL

Website

https://www.jdwetherspoon.com

Wetherspoon (J D) PLC owns and operates close to 1,000 pubs throughout the United Kingdom and Ireland. The pubs generate nearly all of the company's total revenue, but it also has a very small hotel business. Its locations are in or near town centres or in suburban locations. It also has pubs in airports and railway stations. The company leases roughly half of its locations and owns the other half. Majority of its pubs operate under individual brand names. Brands with multiple locations include Wetherspoon's and Moon Under Water.