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EPE Capital Partners (JSE:EPE) ROC % : -2.61% (As of Jun. 2024)


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What is EPE Capital Partners 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 %. EPE Capital Partners's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -2.61%.

As of today (2025-03-16), EPE Capital Partners's WACC % is 7.27%. EPE Capital Partners's ROC % is -12.41% (calculated using TTM income statement data). EPE Capital Partners earns returns that do not match up to its cost of capital. It will destroy value as it grows.


EPE Capital Partners ROC % Historical Data

The historical data trend for EPE Capital Partners'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.

* Premium members only.

EPE Capital Partners ROC % Chart

EPE Capital Partners Annual Data
Trend Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
ROC %
Get a 7-Day Free Trial -47.51 1.15 22.66 1.45 -12.28

EPE Capital Partners Semi-Annual Data
Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.42 0.93 -2.25 -21.59 -2.61

EPE Capital Partners ROC % Calculation

EPE Capital Partners'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 )
=-305.541 * ( 1 - -0.4% )/( (2688.078 + 2309.219)/ 2 )
=-306.763164/2498.6485
=-12.28 %

where

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))
=2328.311 - 21.469 - ( 15.005 - max(0, 21.469 - 19.092+15.005))
=2309.219

EPE Capital Partners's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-61 * ( 1 - -1.1% )/( (2420.299 + 2309.219)/ 2 )
=-61.671/2364.759
=-2.61 %

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))
=2328.311 - 21.469 - ( 15.005 - max(0, 21.469 - 19.092+15.005))
=2309.219

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

* 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.


EPE Capital Partners  (JSE:EPE) 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, EPE Capital Partners's WACC % is 7.27%. EPE Capital Partners's ROC % is -12.41% (calculated using TTM income statement data). EPE Capital Partners 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.


EPE Capital Partners ROC % Related Terms

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EPE Capital Partners Business Description

Traded in Other Exchanges
N/A
Address
1 Cybercity, 6th Floor, Tower A, Ebene, MUS
EPE Capital Partners Ltd is an investment holding company. The company offers shareholders long-term capital appreciation by investing in a diversified portfolio of unlisted private equity type investments.

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