Jefferies Financial Group (MEX:JEF) ROC % : 8.70% (As of Aug. 2024)

View and export this data going back to 2015. Start your Free Trial

What is Jefferies Financial 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 %. Jefferies Financial Group's annualized return on capital (ROC %) for the quarter that ended in Aug. 2024 was 8.70%.

As of today (2024-12-12), Jefferies Financial Group's WACC % is 12.98%. Jefferies Financial Group's ROC % is 7.72% (calculated using TTM income statement data). Jefferies Financial Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Jefferies Financial Group ROC % Historical Data

The historical data trend for Jefferies Financial 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.

Jefferies Financial Group ROC % Chart

Jefferies Financial Group Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Nov19

Nov20

Nov21

Nov22

Nov23

ROC %

Get a 7-Day Free Trial

9.17

3.55

6.98

5.55

6.50

Jefferies Financial Group Quarterly Data
	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
ROC %	Get a 7-Day Free Trial															6.28	7.75	8.05	7.27	8.70

Jefferies Financial Group ROC % Calculation

Jefferies Financial Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Nov. 2023 is calculated as:

	ROC % (A: Nov. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Nov. 2022 )	+	Invested Capital (A: Nov. 2023 ))	/ count )
=	57507.643 * ( 1 - 25.94% )	/	( (630809.996	+	679988.38)	/ 2 )
=	42590.1604058	/	655399.188
=	6.50 %

where

	Invested Capital		(A: Nov. 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	))
=	988783.089	-	170062.684	-	( 187910.409	-	max(0, 180295.523	-	598527.029	+	187910.409	))
=	630809.996

	Invested Capital		(A: Nov. 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	))
=	1006148.496	-	178007.738	-	( 148152.378	-	max(0, 215597.901	-	605620.008	+	148152.378	))
=	679988.38

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

	ROC % (Q: Aug. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2024 )	+	Invested Capital (Q: Aug. 2024 ))	/ count )
=	95326.68 * ( 1 - 30.87% )	/	( (699375.24	+	814769.212)	/ 2 )
=	65899.333884	/	757072.226
=	8.70 %

where

	Invested Capital		(Q: May. 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	))
=	1070631.007	-	187013.243	-	( 184242.524	-	max(0, 218997.956	-	671453.384	+	184242.524	))
=	699375.24

	Invested Capital		(Q: Aug. 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	))
=	1248133.516	-	224797.207	-	( 208567.097	-	max(0, 258696.165	-	728235.652	+	208567.097	))
=	814769.212

Note: The Operating Income data used here is four times the quarterly (Aug. 2024) data.

Jefferies Financial Group (MEX:JEF) 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, Jefferies Financial Group's WACC % is 12.98%. Jefferies Financial Group's ROC % is 7.72% (calculated using TTM income statement data). Jefferies Financial 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.

Jefferies Financial Group ROC % Related Terms

Thank you for viewing the detailed overview of Jefferies Financial Group's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Jefferies Financial Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Jefferies Financial Group Inc (MEX:JEF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

JEF:USA LN3:Germany LN3:Germany J1EF34:Brazil

Address

520 Madison Avenue, New York, NY, USA, 10022

Website

https://www.jefferies.com

Jefferies Financial Group Inc is a diversified financial services company. It has two reportable segments; Investment Banking and Capital Markets which is also the majority revenue generating segment, includes securities, commodities, corporate lending, futures and foreign exchange capital markets activities and its investment banking business, which provides underwriting and financial advisory services to clients across different sectors. The Asset Management reportable business segment provides alternative investment management services to investors in the U.S. and overseas and generates investment income from capital invested in and managed by it or its affiliated asset managers.