Sporting Clube de Portugal-Futebol (STU:SCG) ROC % : 0.00% (As of Dec. 2023)

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What is Sporting Clube de Portugal-Futebol 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 %. Sporting Clube de Portugal-Futebol's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 0.00%.

As of today (2024-05-25), Sporting Clube de Portugal-Futebol's WACC % is 2.57%. Sporting Clube de Portugal-Futebol's ROC % is 0.00% (calculated using TTM income statement data). Sporting Clube de Portugal-Futebol earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sporting Clube de Portugal-Futebol ROC % Historical Data

The historical data trend for Sporting Clube de Portugal-Futebol'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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Sporting Clube de Portugal-Futebol ROC % Chart

Sporting Clube de Portugal-Futebol Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

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-21.33

-25.66

-16.77

-5.05

-14.07

Sporting Clube de Portugal-Futebol Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															-0.10	-33.33	-	-	-

Sporting Clube de Portugal-Futebol ROC % Calculation

Sporting Clube de Portugal-Futebol's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-47.339 * ( 1 - 1.64% )	/	( (332.269	+	329.369)	/ 2 )
=	-46.5626404	/	330.819
=	-14.07 %

where

	Invested Capital		(A: Jun. 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	))
=	320.083	-	80.286	-	( 4.263	-	max(0, 155.322	-	62.85	+	4.263	))
=	332.269

	Invested Capital		(A: Jun. 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	))
=	317.916	-	66.919	-	( 8.009	-	max(0, 146.72	-	68.348	+	8.009	))
=	329.369

Sporting Clube de Portugal-Futebol's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	0 * ( 1 - 0% )	/	( (329.369	+	373.513)	/ 2 )
=	0	/	351.441
=	0.00 %

where

	Invested Capital		(Q: Jun. 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	))
=	317.916	-	66.919	-	( 8.009	-	max(0, 146.72	-	68.348	+	8.009	))
=	329.369

	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	))
=	398.571	-	89.858	-	( 17.681	-	max(0, 170.064	-	105.264	+	17.681	))
=	373.513

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Sporting Clube de Portugal-Futebol (STU:SCG) 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, Sporting Clube de Portugal-Futebol's WACC % is 2.57%. Sporting Clube de Portugal-Futebol's ROC % is 0.00% (calculated using TTM income statement data). Sporting Clube de Portugal-Futebol 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.

Sporting Clube de Portugal-Futebol ROC % Related Terms

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Sporting Clube de Portugal-Futebol (STU:SCG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Sporting Clube de Portugal-Futebol (STU:SCG) » Definitions » ROC %

Comparable Companies

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SCP:Portugal

Address

Rua Professor Fernando da Fonseca, Estadio Jose de Alvalade, Apartado 4120, Lisbon, PRT, 1501-806

Website

http://www.sporting.pt

Sporting Clube de Portugal-Futebol is a football club playing in Portugal's First Division. Its other sports include basketball, hockey and athletics and are played in the stadium owned by the company. The group generates revenue from two sources commercial and sports which include a sale of audiovisual rights, from sponsorships, from the sale of advertising space, sale of tickets for games and subscriptions.