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TFF Group (LTS:0IH4) ROC % : 5.15% (As of Apr. 2024)


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What is TFF 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 %. TFF Group's annualized return on capital (ROC %) for the quarter that ended in Apr. 2024 was 5.15%.

As of today (2024-12-14), TFF Group's WACC % is 4.43%. TFF Group's ROC % is 7.96% (calculated using TTM income statement data). TFF Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


TFF Group ROC % Historical Data

The historical data trend for TFF 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.

* Premium members only.

TFF Group ROC % Chart

TFF Group Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.91 4.91 4.82 9.08 8.05

TFF Group Semi-Annual Data
Oct14 Apr15 Oct15 Apr16 Oct16 Apr17 Oct17 Apr18 Oct18 Apr19 Oct19 Apr20 Oct20 Apr21 Oct21 Apr22 Oct22 Apr23 Oct23 Apr24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.72 10.50 7.85 10.74 5.15

TFF Group ROC % Calculation

TFF Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2024 is calculated as:

ROC % (A: Apr. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Apr. 2023 ) + Invested Capital (A: Apr. 2024 ))/ count )
=91.47 * ( 1 - 32.68% )/( (694.889 + 835.441)/ 2 )
=61.577604/765.165
=8.05 %

where

Invested Capital(A: Apr. 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))
=843.547 - 46.319 - ( 102.339 - max(0, 323.416 - 563.343+102.339))
=694.889

Invested Capital(A: Apr. 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))
=968.988 - 40.603 - ( 92.944 - max(0, 329.736 - 626.737+92.944))
=835.441

TFF Group's annualized Return on Capital (ROC %) for the quarter that ended in Apr. 2024 is calculated as:

ROC % (Q: Apr. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Apr. 2024 ))/ count )
=75.926 * ( 1 - 44.88% )/( (789.223 + 835.441)/ 2 )
=41.8504112/812.332
=5.15 %

where

Invested Capital(Q: Oct. 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))
=907.366 - 42.259 - ( 75.884 - max(0, 302.415 - 578.107+75.884))
=789.223

Invested Capital(Q: Apr. 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))
=968.988 - 40.603 - ( 92.944 - max(0, 329.736 - 626.737+92.944))
=835.441

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

* 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.


TFF Group  (LTS:0IH4) 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, TFF Group's WACC % is 4.43%. TFF Group's ROC % is 7.96% (calculated using TTM income statement data). TFF Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


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.


TFF Group ROC % Related Terms

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TFF Group Business Description

Traded in Other Exchanges
Address
Saint-Romain, Saint-Romain, FRA, 21190
TFF Group is a France-based company operating in the beverage industry. The company is engaged in the manufacturing and distribution of barrels and wood products for the ageing of wines and spirits in France. The company also offers cooperages, staves, and casks. Its principal markets include wines, whiskey, and spirits. Geographically, the company derives maximum revenue from the United States and the rest from Europe (excluding France), Asia, France, and other regions.

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