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RILY (B. Riley Financial) ROC % : -0.15% (As of Mar. 2024)


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What is B. Riley Financial 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 %. B. Riley Financial's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -0.15%.

As of today (2024-12-14), B. Riley Financial's WACC % is 5.76%. B. Riley Financial's ROC % is 1.64% (calculated using TTM income statement data). B. Riley Financial earns returns that do not match up to its cost of capital. It will destroy value as it grows.


B. Riley Financial ROC % Historical Data

The historical data trend for B. Riley Financial'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.

B. Riley Financial ROC % Chart

B. Riley Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.33 9.47 10.00 1.18 2.83

B. Riley Financial Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 3.94 3.80 3.27 -0.65 -0.15

B. Riley Financial ROC % Calculation

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

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=212.369 * ( 1 - 25.78% )/( (5512.596 + 5621.024)/ 2 )
=157.6202718/5566.81
=2.83 %

where

Invested Capital(A: Dec. 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))
=6111.202 - 329.988 - ( 268.618 - max(0, 543.107 - 1545.788+268.618))
=5512.596

Invested Capital(A: Dec. 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))
=6074.378 - 221.39 - ( 231.964 - max(0, 336.695 - 1120.958+231.964))
=5621.024

B. Riley Financial'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: Dec. 2023 ) + Invested Capital (Q: Mar. 2024 ))/ count )
=-10.56 * ( 1 - 26.27% )/( (5621.024 + 4610.152)/ 2 )
=-7.785888/5115.588
=-0.15 %

where

Invested Capital(Q: Dec. 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))
=6074.378 - 221.39 - ( 231.964 - max(0, 336.695 - 1120.958+231.964))
=5621.024

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))
=4997.644 - 196.802 - ( 190.69 - max(0, 287.642 - 1004.607+190.69))
=4610.152

Note: The Operating Income data used here is four times the quarterly (Mar. 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.


B. Riley Financial  (NAS:RILY) 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, B. Riley Financial's WACC % is 5.76%. B. Riley Financial's ROC % is 1.64% (calculated using TTM income statement data). B. Riley Financial 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.


B. Riley Financial ROC % Related Terms

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


B. Riley Financial Business Description

Traded in Other Exchanges
Address
11100 Santa Monica Boulevard, Suite 800, Los Angeles, CA, USA, 90025
B. Riley Financial Inc is a diversified financial services company. The company through its subsidiaries offers investment banking and financial services to corporate, institutional, and high-net-worth clients and also asset disposition, valuation and appraisal, and capital advisory services to retail, wholesale, institutional, lenders, capital providers, private equity investors, and professional services firms in United States, Canada, and Europe. It also provides internet access and subscription services. The reportable operating segments of the company include Capital Markets, Wealth Management, Financial Consulting, Auction and Liquidation, Communications segment, and Consumer products segment.
Executives
Kelleher Thomas J /adv officer: CEO of B. Riley Capital Market C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
Renee E Labran director 130 WEST UNION STREET, C/O IDEALAB, PASADENA CA 91103
Andrew Moore officer: CEO of B. Riley FBR, Inc. C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD., SUITE 400, WOODLAND HILLS CA 91367
Robert L Antin director
Tamara Sue Brandt director C/O B. RILEY FINANCIAL, INC., 11100 SANTA MONICA BLVD., SUITE 800, LOS ANGELES CA 90025
Bryant R Riley director C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD, SUITE 400, WOODLAND HILLS CA 91367
Randall E Paulson director
D Agostino Robert P director 21255 BURBANK BOULEVARD, SUITE 400, WOODLAND HILLS CA 91367
Michael Joseph Sheldon director C/O ALDILA, INC., 14145 DANIELSON ST. STE B, POWAY CA 92064
Daniel Asher 10 percent owner 111 W JACKSON BLVD, 20TH FL, CHICAGO IL 60604
Kenneth M Young officer: President C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD., SUITE 400, WOODLAND HILLS CA 91367
Mikel H Williams director 21255 BURBANK BOULEVARD, SUITE 400, WOODLAND HILLS CA 91367
Phillip Ahn officer: CFO and COO 21255 BURBANK BOULEVARD, SUITE 400, WOODLAND HILLS CA 91367
Alan N Forman officer: EVP, General Counsel, Sec 21255 BURBANK BOULEVARD, SUITE 400, WOODLAND HILLS CA 91367
Todd D. Sims director C/O B. RILEY FINANCIAL, INC., 21255 BURBANK BLVD., SUITE 400, WOODLAND HILLS CA 91367