Rex Trueform Group (JSE:RTN) ROC % : 0.27% (As of Jun. 2024)

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What is Rex Trueform Group 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 %. Rex Trueform Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 0.27%.

As of today (2024-12-12), Rex Trueform Group's WACC % is 3.64%. Rex Trueform Group's ROC % is 0.30% (calculated using TTM income statement data). Rex Trueform Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Rex Trueform Group ROC % Historical Data

The historical data trend for Rex Trueform Group'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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Rex Trueform Group ROC % Chart

Rex Trueform Group Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

ROC %

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-10.39

5.87

9.63

10.40

0.30

Rex Trueform Group Semi-Annual Data
	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24
ROC %	Get a 7-Day Free Trial															10.00	17.92	3.35	6.20	0.27

Rex Trueform Group ROC % Calculation

Rex Trueform Group'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 )
=	40.952 * ( 1 - 92.82% )	/	( (966.567	+	1021.804)	/ 2 )
=	2.9403536	/	994.1855
=	0.30 %

where

	Invested Capital		(A: Jun. 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	))
=	1097.157	-	80.719	-	( 49.871	-	max(0, 185.267	-	244.302	+	49.871	))
=	966.567

	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	))
=	1143.136	-	73.613	-	( 47.719	-	max(0, 153.787	-	214.088	+	47.719	))
=	1021.804

Rex Trueform Group'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 )
=	2.714 * ( 1 - -0.29% )	/	( (957.893	+	1021.804)	/ 2 )
=	2.7218706	/	989.8485
=	0.27 %

where

	Invested Capital		(Q: Dec. 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	))
=	1118.666	-	96.123	-	( 64.65	-	max(0, 162.261	-	267.902	+	64.65	))
=	957.893

	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	))
=	1143.136	-	73.613	-	( 47.719	-	max(0, 153.787	-	214.088	+	47.719	))
=	1021.804

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

Rex Trueform Group (JSE:RTN) 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, Rex Trueform Group's WACC % is 3.64%. Rex Trueform Group's ROC % is 0.30% (calculated using TTM income statement data). Rex Trueform Group 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.

Rex Trueform Group ROC % Related Terms

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Rex Trueform Group Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Rex Trueform Group Ltd (JSE:RTN) » Definitions » ROC %

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RTO:South Africa

Address

263 Victoria Road, Unit 1, Rex Trueform Office Park, Salt River, Cape Town, WC, ZAF, 7925

Website

https://www.rextrueform.com

Rex Trueform Group Ltd is a holding company. It is organized into four segments: Retail segment which comprises of the retailing of fashion apparel through Queenspark stores in South Africa. Property segment comprising of the group's property portfolio based in Cape Town, which includes both investment and owner occupied properties. Media and broadcasting segment engaged in the provision of media and satellite equipment and services through Telemedia. Water infrastructure segment comprises of an indirect investment made in a private water and wastewater utility group. The company generates maximum revenue from South Africa.