Studio Retail Group (LSE:STU) ROC % : 10.86% (As of Sep. 2021)

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What is Studio Retail 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 %. Studio Retail Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2021 was 10.86%.

As of today (2024-06-16), Studio Retail Group's WACC % is 0.00%. Studio Retail Group's ROC % is 0.00% (calculated using TTM income statement data). Studio Retail Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Studio Retail Group ROC % Historical Data

The historical data trend for Studio Retail 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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Studio Retail Group ROC % Chart

Studio Retail Group Annual Data

Trend

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

ROC %

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-1.28

10.50

8.67

6.23

11.06

Studio Retail Group Semi-Annual Data
	Mar12	Sep12	Mar13	Sep13	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21
ROC %	Get a 7-Day Free Trial															4.33	10.79	9.09	14.18	10.86

Studio Retail Group ROC % Calculation

Studio Retail Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2021 is calculated as:

	ROC % (A: Mar. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2020 )	+	Invested Capital (A: Mar. 2021 ))	/ count )
=	57.987 * ( 1 - 20.65% )	/	( (398.436	+	433.417)	/ 2 )
=	46.0126845	/	415.9265
=	11.06 %

where

	Invested Capital		(A: Mar. 2020 )
=	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	))
=	487.046	-	55.447	-	( 33.163	-	max(0, 88.167	-	342.196	+	33.163	))
=	398.436

	Invested Capital		(A: Mar. 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	))
=	515.814	-	44.954	-	( 37.443	-	max(0, 171.368	-	412.286	+	37.443	))
=	433.417

Studio Retail Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2021 is calculated as:

	ROC % (Q: Sep. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2021 )	+	Invested Capital (Q: Sep. 2021 ))	/ count )
=	57.182 * ( 1 - 21.76% )	/	( (433.417	+	390.495)	/ 2 )
=	44.7391968	/	411.956
=	10.86 %

where

	Invested Capital		(Q: Mar. 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	))
=	515.814	-	44.954	-	( 37.443	-	max(0, 171.368	-	412.286	+	37.443	))
=	433.417

	Invested Capital		(Q: Sep. 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	))
=	477.866	-	69.209	-	( 18.162	-	max(0, 81.455	-	363.579	+	18.162	))
=	390.495

Note: The Operating Income data used here is two times the semi-annual (Sep. 2021) data.

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

Studio Retail Group ROC % Related Terms

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Studio Retail Group (LSE:STU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Studio Retail Group PLC (LSE:STU) » Definitions » ROC %

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Address

Henry Street, Church Bridge House, Accrington, Lancs, GBR, BB5 4EE

Website

https://www.studioretail.group

Studio Retail Group PLC is a merchandise supplier to the home and education sectors which basically operates with two business segments Studio and Education. Studio segment offers home and leisure items through online and catalog shopping to more than 1 million customers throughout the UK, whereas Findel Education segment acts as a supplier of resources and equipment to schools and educational establishments. Its operations are located in the United Kingdom and Asia.

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