John Lewis of Hungerford (LSE:JLH) ROC % : -1.25% (As of Dec. 2022)

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What is John Lewis of Hungerford 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 %. John Lewis of Hungerford's annualized return on capital (ROC %) for the quarter that ended in Dec. 2022 was -1.25%.

As of today (2024-06-03), John Lewis of Hungerford's WACC % is 0.00%. John Lewis of Hungerford's ROC % is 0.00% (calculated using TTM income statement data). John Lewis of Hungerford earns returns that do not match up to its cost of capital. It will destroy value as it grows.

John Lewis of Hungerford ROC % Historical Data

The historical data trend for John Lewis of Hungerford'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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John Lewis of Hungerford ROC % Chart

John Lewis of Hungerford Annual Data

Trend

Aug12

Aug13

Aug14

Aug15

Aug16

Aug17

Jun19

Jun20

Jun21

Jun22

ROC %

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4.51

-1.70

-11.26

12.98

3.39

John Lewis of Hungerford Semi-Annual Data
	Feb13	Aug13	Feb14	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22
ROC %	Get a 7-Day Free Trial															-3.03	17.78	0.94	5.52	-1.25

John Lewis of Hungerford ROC % Calculation

John Lewis of Hungerford's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2022 is calculated as:

	ROC % (A: Jun. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2021 )	+	Invested Capital (A: Jun. 2022 ))	/ count )
=	0.233 * ( 1 - 0% )	/	( (6.134	+	7.614)	/ 2 )
=	0.233	/	6.874
=	3.39 %

where

	Invested Capital		(A: Jun. 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	))
=	6.619	-	1.33	-	( 1.302	-	max(0, 3.291	-	2.446	+	1.302	))
=	6.134

	Invested Capital		(A: 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	))
=	8.555	-	1.738	-	( 1.473	-	max(0, 4.468	-	3.671	+	1.473	))
=	7.614

John Lewis of Hungerford'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 )
=	-0.1 * ( 1 - 0% )	/	( (7.614	+	8.346)	/ 2 )
=	-0.1	/	7.98
=	-1.25 %

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	))
=	8.555	-	1.738	-	( 1.473	-	max(0, 4.468	-	3.671	+	1.473	))
=	7.614

	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	))
=	7.415	-	0	-	( 0.68	-	max(0, 3.639	-	2.708	+	0.68	))
=	8.346

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

John Lewis of Hungerford (LSE:JLH) 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, John Lewis of Hungerford's WACC % is 0.00%. John Lewis of Hungerford's ROC % is 0.00% (calculated using TTM income statement data). John Lewis of Hungerford 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.

John Lewis of Hungerford ROC % Related Terms

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John Lewis of Hungerford (LSE:JLH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Furnishings, Fixtures & Appliances » John Lewis of Hungerford PLC (LSE:JLH) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

Downsview Road, Grove Business Park, Wantage, Oxfordshire, GBR, OX12 9FA

Website

https://www.john-lewis.co.uk

John Lewis of Hungerford PLC is a UK-based company that designs, manufactures, retails, and installs kitchens, bedrooms, freestanding furniture, and architectural components for its customers through its showrooms across the United Kingdom. It also operates an online business under the name of Just Doors for replacement kitchen cabinet doors. The company offers furniture such as Dressers, Tables, Chairs, and others, as well as painted kitchen collections and fitted bedroom collections. It operates its business in single-segment, being Manufacture, supplying, and installation of kitchen units, bedrooms, and furniture. The group's revenue is derived from the UK.

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