Cambridge Nutritional Sciences (LSE:CNSL) ROC % : -3.94% (As of Sep. 2024)

View and export this data going back to 2004. Start your Free Trial

What is Cambridge Nutritional Sciences 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 %. Cambridge Nutritional Sciences's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -3.94%.

As of today (2025-03-25), Cambridge Nutritional Sciences's WACC % is 17.76%. Cambridge Nutritional Sciences's ROC % is 2.71% (calculated using TTM income statement data). Cambridge Nutritional Sciences earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cambridge Nutritional Sciences ROC % Historical Data

The historical data trend for Cambridge Nutritional Sciences'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.

Cambridge Nutritional Sciences ROC % Chart

Cambridge Nutritional Sciences Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

Get a 7-Day Free Trial

2.84

1.64

-4.63

-22.19

-2.95

Cambridge Nutritional Sciences Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															-12.06	-35.59	-9.69	28.90	-3.94

Cambridge Nutritional Sciences ROC % Calculation

Cambridge Nutritional Sciences'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 )
=	-0.535 * ( 1 - 55.97% )	/	( (8.279	+	7.67)	/ 2 )
=	-0.2355605	/	7.9745
=	-2.95 %

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	))
=	14.405	-	1.011	-	( 5.115	-	max(0, 1.935	-	8.295	+	5.115	))
=	8.279

	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	))
=	13.894	-	0.78	-	( 5.444	-	max(0, 1.687	-	7.875	+	5.444	))
=	7.67

Cambridge Nutritional Sciences's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-0.304 * ( 1 - 0% )	/	( (7.67	+	7.781)	/ 2 )
=	-0.304	/	7.7255
=	-3.94 %

where

	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	))
=	13.894	-	0.78	-	( 5.444	-	max(0, 1.687	-	7.875	+	5.444	))
=	7.67

	Invested Capital		(Q: Sep. 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	))
=	13.504	-	1.203	-	( 4.52	-	max(0, 1.464	-	7.504	+	4.52	))
=	7.781

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

Cambridge Nutritional Sciences (LSE:CNSL) 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, Cambridge Nutritional Sciences's WACC % is 17.76%. Cambridge Nutritional Sciences's ROC % is 2.71% (calculated using TTM income statement data). Cambridge Nutritional Sciences 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.

Cambridge Nutritional Sciences ROC % Related Terms

Thank you for viewing the detailed overview of Cambridge Nutritional Sciences's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Cambridge Nutritional Sciences Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Cambridge Nutritional Sciences PLC (LSE:CNSL) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

One Fleet Place, London, GBR, EC4M 7WS

Website

https://www.cnsplc.com

Cambridge Nutritional Sciences PLC is a specialist medical diagnostics company focused on promoting a personalized and functional approach to health and nutrition. The group has two reportable segments: Health and Nutrition; and Corporate. The Health and Nutrition division specialises in the research, development, and production of kits to aid the detection of immune reactions to food. It also provides clinical analysis to the general public, clinics, and health professionals as well as supplying the point-of-care Food Detective test. The Corporate segment consists of centralised corporate costs which are not allocated to the trading activities of the group. The company generates the majority of its revenue from the Health and Nutrition segment.