REMYF (Remy Cointreau) ROC % : 8.23% (As of Sep. 2024)

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What is Remy Cointreau 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 %. Remy Cointreau's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 8.23%.

As of today (2024-12-12), Remy Cointreau's WACC % is 7.61%. Remy Cointreau's ROC % is 7.94% (calculated using TTM income statement data). Remy Cointreau 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.

Remy Cointreau ROC % Historical Data

The historical data trend for Remy Cointreau'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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Remy Cointreau ROC % Chart

Remy Cointreau Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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6.78

7.93

5.96

13.55

8.88

Remy Cointreau Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
ROC %	Get a 7-Day Free Trial															19.67	7.43	10.23	7.70	8.23

Remy Cointreau ROC % Calculation

Remy Cointreau's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	330.761 * ( 1 - 27.41% )	/	( (2569.165	+	2839.13)	/ 2 )
=	240.0994099	/	2704.1475
=	8.88 %

where

	Invested Capital		(A: Mar. 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	))
=	3412.206	-	764.133	-	( 78.908	-	max(0, 1108.458	-	2336.724	+	78.908	))
=	2569.165

	Invested Capital		(A: 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	))
=	3663.804	-	723.587	-	( 101.087	-	max(0, 1016.087	-	2536.304	+	101.087	))
=	2839.13

Remy Cointreau's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	326.748 * ( 1 - 27.53% )	/	( (2839.13	+	2914.539)	/ 2 )
=	236.7942756	/	2876.8345
=	8.23 %

where

	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	))
=	3663.804	-	723.587	-	( 101.087	-	max(0, 1016.087	-	2536.304	+	101.087	))
=	2839.13

	Invested Capital		(Q: Sep. 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	))
=	3744.173	-	775.694	-	( 53.94	-	max(0, 985.905	-	2602.22	+	53.94	))
=	2914.539

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

Remy Cointreau (OTCPK:REMYF) 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, Remy Cointreau's WACC % is 7.61%. Remy Cointreau's ROC % is 7.94% (calculated using TTM income statement data). Remy Cointreau 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.

Remy Cointreau ROC % Related Terms

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Remy Cointreau Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Remy Cointreau (OTCPK:REMYF) » Definitions » ROC %

Traded in Other Exchanges

REMYY:USA 0MGU:UK RCOp:UK RCO:France RMC:Germany RCO:Austria

Address

Rue Joseph Pataa, Ancienne rue de la Champagne, Cognac, FRA, 16100

Website

https://www.remy-cointreau.com

Remy Cointreau is the world's second-largest distiller of cognac by volume, with a 15.8% global volume share in 2022, according to Euromonitor. Cognac represented 72% of Remy's sales and 90% of EBIT in the same year. The remainder of Remy's portfolio is made up of much smaller group-owned brands, including Cointreau orange liqueur, Metaxa Greek spirit, Mount Gay rum, Bruichladdich single malt scotch, The Botanist gin, Hautes Glaces French whiskey, and Westland American whiskey. The company also distributes third-party brands and, in 2023, entered the fragrance business. Remy is controlled by the Andromede family, which owns 41% equity interest and consolidates the business in the Andromede Group. The Cointreau family owns a further 27%, and 41% of the equity is free float.