Buffalo Wild Wings (STU:BWW) ROC % : 9.66% (As of Sep. 2017)

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What is Buffalo Wild Wings 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 %. Buffalo Wild Wings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2017 was 9.66%.

As of today (2024-05-17), Buffalo Wild Wings's WACC % is 0.00%. Buffalo Wild Wings's ROC % is 0.00% (calculated using TTM income statement data). Buffalo Wild Wings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Buffalo Wild Wings ROC % Historical Data

The historical data trend for Buffalo Wild Wings'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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Buffalo Wild Wings ROC % Chart

Buffalo Wild Wings Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

ROC %

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13.77

14.04

17.71

13.76

11.11

Buffalo Wild Wings Quarterly Data
	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17
ROC %	Get a 7-Day Free Trial															10.27	7.32	10.94	3.12	9.66

Buffalo Wild Wings ROC % Calculation

Buffalo Wild Wings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2016 is calculated as:

	ROC % (A: Dec. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2015 )	+	Invested Capital (A: Dec. 2016 ))	/ count )
=	129.592 * ( 1 - 29.69% )	/	( (806.905	+	832.667)	/ 2 )
=	91.1161352	/	819.786
=	11.11 %

where

	Invested Capital		(A: Dec. 2015 )
=	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	))
=	984.447	-	238.013	-	( 18.601	-	max(0, 242.006	-	181.535	+	18.601	))
=	806.905

	Invested Capital		(A: Dec. 2016 )
=	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	))
=	992.764	-	222.08	-	( 46.704	-	max(0, 229.387	-	167.404	+	46.704	))
=	832.667

Buffalo Wild Wings's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2017 is calculated as:

	ROC % (Q: Sep. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2017 )	+	Invested Capital (Q: Sep. 2017 ))	/ count )
=	95.392 * ( 1 - 27.3% )	/	( (745.27	+	690.866)	/ 2 )
=	69.349984	/	718.068
=	9.66 %

where

	Invested Capital		(Q: Jun. 2017 )
=	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	))
=	827.921	-	154.67	-	( 17.747	-	max(0, 169.444	-	97.425	+	17.747	))
=	745.27

	Invested Capital		(Q: Sep. 2017 )
=	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	))
=	780.678	-	134.619	-	( 25.745	-	max(0, 148.257	-	103.45	+	25.745	))
=	690.866

Note: The Operating Income data used here is four times the quarterly (Sep. 2017) data.

Buffalo Wild Wings (STU:BWW) 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, Buffalo Wild Wings's WACC % is 0.00%. Buffalo Wild Wings's ROC % is 0.00% (calculated using TTM income statement data). Buffalo Wild Wings 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.

Buffalo Wild Wings ROC % Related Terms

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Buffalo Wild Wings (STU:BWW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Buffalo Wild Wings Inc (STU:BWW) » Definitions » ROC %

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Address

Website

http://www.buffalowildwings.com

Buffalo Wild Wings operates and franchises restaurants under the names Buffalo Wild Wings, R Taco, and PizzaRev. The Buffalo Wild Wings restaurants, which provide the vast majority of company revenue, have sports-bar atmospheres and feature Buffalo-style chicken wings. The restaurants are designed for group gatherings and feature projection screens and dozens of televisions. About half of the company's restaurants are franchised. The company has a centralized supply chain that serves all company-owned and franchised restaurants. The majority of its restaurants are in the United States, but the company has a small presence in Canada and Mexico and is expanding to the Middle East and Asia.

Buffalo Wild Wings (STU:BWW) Headlines

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