Bonhill Group (LSE:BONH) ROC % : -77.98% (As of Dec. 2022)

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What is Bonhill 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 %. Bonhill Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2022 was -77.98%.

As of today (2024-04-30), Bonhill Group's WACC % is 0.00%. Bonhill Group's ROC % is 0.00% (calculated using TTM income statement data). Bonhill Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bonhill Group ROC % Historical Data

The historical data trend for Bonhill 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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Bonhill Group ROC % Chart

Bonhill Group Annual Data

Trend

Jan12

Jan13

Jan14

Jan15

Jan16

Mar18

Dec19

Dec20

Dec21

Dec22

ROC %

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-19.61

1.07

-13.15

-40.96

-47.62

Bonhill Group Semi-Annual Data
	Jul12	Jan13	Jul13	Jan14	Jul14	Jan15	Jul15	Jan16	Jul16	Sep17	Mar18	Sep18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22
ROC %	Get a 7-Day Free Trial															-259.61	-15.67	-62.06	-20.69	-77.98

Bonhill Group ROC % Calculation

Bonhill Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-6.214 * ( 1 - -4.46% )	/	( (16.51	+	10.752)	/ 2 )
=	-6.4911444	/	13.631
=	-47.62 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	18.629	-	1.464	-	( 1.372	-	max(0, 4.005	-	4.66	+	1.372	))
=	16.51

	Invested Capital		(A: Dec. 2022 )
=	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	))
=	13.679	-	1.657	-	( 1.27	-	max(0, 6.249	-	13.679	+	1.27	))
=	10.752

Bonhill Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2022 is calculated as:

	ROC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	-9.23 * ( 1 - -6.26% )	/	( (14.402	+	10.752)	/ 2 )
=	-9.807798	/	12.577
=	-77.98 %

where

	Invested Capital		(Q: Jun. 2022 )
=	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	))
=	18.263	-	4.316	-	( 1.198	-	max(0, 4.822	-	4.367	+	1.198	))
=	14.402

	Invested Capital		(Q: Dec. 2022 )
=	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	))
=	13.679	-	1.657	-	( 1.27	-	max(0, 6.249	-	13.679	+	1.27	))
=	10.752

Note: The Operating Income data used here is two times the semi-annual (Dec. 2022) data.

Bonhill Group (LSE:BONH) 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, Bonhill Group's WACC % is 0.00%. Bonhill Group's ROC % is 0.00% (calculated using TTM income statement data). Bonhill 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.

Bonhill Group ROC % Related Terms

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Bonhill Group (LSE:BONH) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Bonhill Group PLC (LSE:BONH) » Definitions » ROC %

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Address

c/o Virtual Company Secretary Ltd, 7 York Road, Woking, ARE, GU22 7XH

Website

https://www.bonhillplc.com

Bonhill Group PLC is a UK based B2B media company, which provides Business Information, Live Events, and Data & Insight propositions to international Technology, Financial Services, and Diversity Business Communities. Its brands include Information Age, InvestmentNews, What Investment, Small Business.co.uk, Growth Business.co.uk, DiversityQ, Growth Company Investor, and Women in IT Awards Global. The operating business segments are Bonhill UK, InvestmentNews, and Last Word Media. The majority of the revenue is generated from Business Information activities. The company operates in the United Kingdom, Europe, and the United States. Geographically, the company derives maximum revenue from the United States.

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