Noble Investments (UK) (LSE:NBL) ROC % : 5.90% (As of Feb. 2013)

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

What is Noble Investments (UK) 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 %. Noble Investments (UK)'s annualized return on capital (ROC %) for the quarter that ended in Feb. 2013 was 5.90%.

As of today (2024-05-27), Noble Investments (UK)'s WACC % is 0.00%. Noble Investments (UK)'s ROC % is 0.00% (calculated using TTM income statement data). Noble Investments (UK) earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Noble Investments (UK) ROC % Historical Data

The historical data trend for Noble Investments (UK)'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.

Noble Investments (UK) ROC % Chart

Noble Investments (UK) Annual Data

Trend

Aug03

Aug04

Aug05

Aug06

Aug07

Aug08

Aug09

Aug10

Aug11

Aug12

ROC %

Get a 7-Day Free Trial

12.75

12.41

13.61

17.76

18.32

Noble Investments (UK) Semi-Annual Data
	Aug03	Feb04	Aug04	Feb05	Aug05	Feb06	Aug06	Feb07	Aug07	Feb08	Aug08	Feb09	Aug09	Feb10	Aug10	Feb11	Aug11	Feb12	Aug12	Feb13
ROC %	Get a 7-Day Free Trial															15.85	14.58	19.69	10.26	5.90

Noble Investments (UK) ROC % Calculation

Noble Investments (UK)'s annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2012 is calculated as:

	ROC % (A: Aug. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2011 )	+	Invested Capital (A: Aug. 2012 ))	/ count )
=	3.683 * ( 1 - 25.09% )	/	( (14.227	+	15.899)	/ 2 )
=	2.7589353	/	15.063
=	18.32 %

where

	Invested Capital		(A: Aug. 2011 )
=	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	))
=	17.779	-	2.09	-	( 1.462	-	max(0, 2.363	-	13.695	+	1.462	))
=	14.227

	Invested Capital		(A: Aug. 2012 )
=	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	))
=	21.321	-	3.176	-	( 2.246	-	max(0, 3.484	-	17.026	+	2.246	))
=	15.899

Noble Investments (UK)'s annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2013 is calculated as:

	ROC % (Q: Feb. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2012 )	+	Invested Capital (Q: Feb. 2013 ))	/ count )
=	1.784 * ( 1 - 40.28% )	/	( (15.899	+	20.207)	/ 2 )
=	1.0654048	/	18.053
=	5.90 %

where

	Invested Capital		(Q: Aug. 2012 )
=	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	))
=	21.321	-	3.176	-	( 2.246	-	max(0, 3.484	-	17.026	+	2.246	))
=	15.899

	Invested Capital		(Q: Feb. 2013 )
=	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	))
=	32.554	-	8.176	-	( 4.171	-	max(0, 9.747	-	20.336	+	4.171	))
=	20.207

Note: The Operating Income data used here is two times the semi-annual (Feb. 2013) data.

Noble Investments (UK) (LSE:NBL) 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, Noble Investments (UK)'s WACC % is 0.00%. Noble Investments (UK)'s ROC % is 0.00% (calculated using TTM income statement data). Noble Investments (UK) 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.

Noble Investments (UK) ROC % Related Terms

Thank you for viewing the detailed overview of Noble Investments (UK)'s ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Noble Investments (UK) (LSE:NBL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » Noble Investments (UK) PLC (LSE:NBL) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.nobleinvestmentsplc.com

Noble Investments (UK) PLC is engaged in collectibles retail trading and auctions, including rare coins, stamps, tokens, medals and banknotes. Its two segments are Retail trading and related; and Auctions, commissions and fees. Its provides personalized consultancy services to collectors and dealers in English, Ancient and Foreign coins, Commemorative medals and World tokens, Numismatic and Philatelic Books, Banknotes and Paper Ephemera, Military orders and decorations, and World stamps. It operates under Baldwins's and Apex brands. The group has operations in United Kingdom, North America, Europe, and in other part of the world.