Various Eateries (LSE:VARE) ROC % : -6.23% (As of Mar. 2024)

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What is Various Eateries 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 %. Various Eateries's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -6.23%.

As of today (2024-12-13), Various Eateries's WACC % is 6.45%. Various Eateries's ROC % is -1.53% (calculated using TTM income statement data). Various Eateries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Various Eateries ROC % Historical Data

The historical data trend for Various Eateries'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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Various Eateries ROC % Chart

Various Eateries Annual Data

Trend

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROC %

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-1.86

-7.08

-2.33

-0.02

-2.39

Various Eateries Semi-Annual Data
	Sep17	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24
ROC %	Get a 7-Day Free Trial								-4.61	4.29	-8.54	3.28	-6.23

Various Eateries ROC % Calculation

Various Eateries's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2023 is calculated as:

	ROC % (A: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2022 )	+	Invested Capital (A: Sep. 2023 ))	/ count )
=	-1.922 * ( 1 - 0% )	/	( (78.253	+	82.429)	/ 2 )
=	-1.922	/	80.341
=	-2.39 %

where

	Invested Capital		(A: Sep. 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	))
=	71.676	-	4.789	-	( 9.39	-	max(0, 24.127	-	12.761	+	9.39	))
=	78.253

	Invested Capital		(A: Sep. 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	))
=	66.638	-	5.884	-	( 1.902	-	max(0, 26.891	-	5.216	+	1.902	))
=	82.429

Various Eateries's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-4.802 * ( 1 - 0% )	/	( (82.429	+	71.711)	/ 2 )
=	-4.802	/	77.07
=	-6.23 %

where

	Invested Capital		(Q: Sep. 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	))
=	66.638	-	5.884	-	( 1.902	-	max(0, 26.891	-	5.216	+	1.902	))
=	82.429

	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	))
=	71.509	-	4.133	-	( 7.22	-	max(0, 14.657	-	10.322	+	7.22	))
=	71.711

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

Various Eateries (LSE:VARE) 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, Various Eateries's WACC % is 6.45%. Various Eateries's ROC % is -1.53% (calculated using TTM income statement data). Various Eateries 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.

Various Eateries ROC % Related Terms

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Various Eateries Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Various Eateries PLC (LSE:VARE) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

20 Saint Thomas Street, Runway East, London, GBR, SE1 9RS

Website

http://www.variouseateries.co.uk

Various Eateries PLC owns, develops, and operates restaurant sites in the United Kingdom. The company operates two core brands; Coppa Club, a multi-use, all-day concept that combines a restaurant, terrace, cafe, lounge, bar, and workspaces; and Tavolino, a restaurant aiming to address a gap in the market for high-quality Italian food at mid-market prices. The company has two operating segments; the Restaurant Segment, and the Hotel Segment, out of which a majority of the company's revenue is derived from the Restaurant Segment.

Various Eateries Headlines

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