Marshall Monteagle (JSE:MMP) ROC % : -5.54% (As of Mar. 2024)

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What is Marshall Monteagle 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 %. Marshall Monteagle's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -5.54%.

As of today (2024-12-12), Marshall Monteagle's WACC % is 6.84%. Marshall Monteagle's ROC % is -1.90% (calculated using TTM income statement data). Marshall Monteagle earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Marshall Monteagle ROC % Historical Data

The historical data trend for Marshall Monteagle'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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Marshall Monteagle ROC % Chart

Marshall Monteagle Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Mar23

Mar24

ROC %

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11.85

10.87

-1.20

-3.32

-1.96

Marshall Monteagle Semi-Annual Data
	Sep13	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep22	Mar23	Sep23	Mar24
ROC %	Get a 7-Day Free Trial															7.23	12.46	-21.02	0.70	-5.54

Marshall Monteagle ROC % Calculation

Marshall Monteagle's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	-31.457 * ( 1 - 8.37% )	/	( (1671.072	+	1265.441)	/ 2 )
=	-28.8240491	/	1468.2565
=	-1.96 %

where

	Invested Capital		(A: Mar. 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	))
=	2394.587	-	299.438	-	( 424.077	-	max(0, 519.008	-	1157.378	+	424.077	))
=	1671.072

	Invested Capital		(A: Mar. 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	))
=	2286.276	-	233.11	-	( 787.725	-	max(0, 553.296	-	1636.385	+	787.725	))
=	1265.441

Marshall Monteagle's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-78.256 * ( 1 - -1.78% )	/	( (1608.102	+	1265.441)	/ 2 )
=	-79.6489568	/	1436.7715
=	-5.54 %

where

	Invested Capital		(Q: Sep. 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	))
=	2450.103	-	413.68	-	( 428.321	-	max(0, 528.517	-	1327.713	+	428.321	))
=	1608.102

	Invested Capital		(Q: Mar. 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	))
=	2286.276	-	233.11	-	( 787.725	-	max(0, 553.296	-	1636.385	+	787.725	))
=	1265.441

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

Marshall Monteagle (JSE:MMP) 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, Marshall Monteagle's WACC % is 6.84%. Marshall Monteagle's ROC % is -1.90% (calculated using TTM income statement data). Marshall Monteagle 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.

Marshall Monteagle ROC % Related Terms

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Marshall Monteagle Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » Marshall Monteagle PLC (JSE:MMP) » Definitions » ROC %

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Address

66-72 Esplanade, 2nd Floor, Gaspe House, Saint Helier, JEY, JE1 1GH

Website

https://www.monteaglegroup.com

Marshall Monteagle PLC operates trading businesses involved in the importation and distribution of hand tools, machinery and non-perishable food products, coffee roasting, importing and exporting and trading in metals and minerals. It is also involved in the property business. The company generates the majority of its revenue from the Import and distribution segment, which is engaged in Trade in non-perishable products, such as food, food ingredients, household consumer products, metal and minerals, manufacturing inputs, and tools; majorly imports to South Africa and Latin America, and exports from South Africa.