Be Heard Group (LSE:BHRD) ROC % : -23.07% (As of Dec. 2019)

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What is Be Heard 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 %. Be Heard Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2019 was -23.07%.

As of today (2024-09-21), Be Heard Group's WACC % is 5.72%. Be Heard Group's ROC % is -28.04% (calculated using TTM income statement data). Be Heard Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Heard Group ROC % Historical Data

The historical data trend for Be Heard 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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Be Heard Group ROC % Chart

Be Heard Group Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

ROC %

-5.86

-8.91

-5.00

-19.22

Be Heard Group Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19
ROC %	Get a 7-Day Free Trial					0.74	-11.46	-25.80	-3.40	-23.07

Be Heard Group ROC % Calculation

Be Heard Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2018 is calculated as:

	ROC % (A: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2017 )	+	Invested Capital (A: Dec. 2018 ))	/ count )
=	-9.697 * ( 1 - 8.58% )	/	( (50.181	+	42.087)	/ 2 )
=	-8.8649974	/	46.134
=	-19.22 %

where

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	59.086	-	11.359	-	( 3.107	-	max(0, 15.984	-	13.53	+	3.107	))
=	50.181

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	48.974	-	14.251	-	( 2.167	-	max(0, 22.071	-	14.707	+	2.167	))
=	42.087

Be Heard Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2019 is calculated as:

	ROC % (Q: Dec. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2019 )	+	Invested Capital (Q: Dec. 2019 ))	/ count )
=	-11.478 * ( 1 - 7.91% )	/	( (55.871	+	35.746)	/ 2 )
=	-10.5700902	/	45.8085
=	-23.07 %

where

	Invested Capital		(Q: Jun. 2019 )
=	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	))
=	53.064	-	9.244	-	( 3.064	-	max(0, 27.759	-	15.708	+	3.064	))
=	55.871

	Invested Capital		(Q: Dec. 2019 )
=	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	))
=	42.117	-	11.442	-	( 3.13	-	max(0, 17.494	-	12.423	+	3.13	))
=	35.746

Note: The Operating Income data used here is two times the semi-annual (Dec. 2019) data.

Be Heard Group (LSE:BHRD) 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, Be Heard Group's WACC % is 5.72%. Be Heard Group's ROC % is -28.04% (calculated using TTM income statement data). Be Heard 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.

Be Heard Group ROC % Related Terms

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Be Heard Group Business Description

Industry

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Address

53 Frith Street, London, GBR, W1D 4SN

Website

https://www.beheardgroup.com

Be Heard Group PLC is a United Kingdoms-based digital marketing group operating at the intersection of marketing, technology, and e-commerce. Its segments include Be Heard Group; Design, Build and UX; Media Planning and Buying; Content Management; Analytics Consultancy; and Full-Service Agency. It plans, buys and manages multi-channel marketing campaigns including paid search, search engine optimization, paid social media, programmatic and negotiated display media across desktop, mobile and other digitally connected devices. Most of the company's revenue is generated from the media planning and buying segment in the UK. Geographically it operates in the UK and Non-UK segments.

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