# Value Line (Value Line) ROC % : 8.31% (As of Jan. 2024)

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## What is Value Line 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 %. Value Line's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was 8.31%.

As of today (2024-06-25), Value Line's WACC % is 12.86%. Value Line's ROC % is 9.64% (calculated using TTM income statement data). Value Line earns returns that do not match up to its cost of capital. It will destroy value as it grows.

## Value Line ROC % Historical Data

The historical data trend for Value Line'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.

### Value Line ROC % Chart

Value Line Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23
ROC %
Get a 7-Day Free Trial 4.97 7.76 6.38 9.39 10.29

 Value Line Quarterly Data Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 ROC % Get a 7-Day Free Trial 10.85 10.15 10.18 9.94 8.31

## Value Line ROC % Calculation

Value Line's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2023 is calculated as:

 ROC % (A: Apr. 2023 ) = NOPAT / Average Invested Capital = Operating Income * ( 1 - Tax Rate % ) / ( (Invested Capital (A: Apr. 2022 ) + Invested Capital (A: Apr. 2023 )) / count ) = 11.47 * ( 1 - 24% ) / ( (86.332 + 83.115) / 2 ) = 8.7172 / 84.7235 = 10.29 %

where

 Invested Capital (A: Apr. 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 )) = 128.743 - 4.831 - ( 57.825 - max(0, 23.758 - 61.338 + 57.825 )) = 86.332

 Invested Capital (A: Apr. 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 )) = 131.076 - 5.173 - ( 62.064 - max(0, 23.288 - 66.076 + 62.064 )) = 83.115

Value Line's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

 ROC % (Q: Jan. 2024 ) = NOPAT / Average Invested Capital = Operating Income * ( 1 - Tax Rate % ) / ( (Invested Capital (Q: Oct. 2023 ) + Invested Capital (Q: Jan. 2024 )) / count ) = 8.928 * ( 1 - 23.87% ) / ( (81.595 + 82.038) / 2 ) = 6.7968864 / 81.8165 = 8.31 %

where

 Invested Capital (Q: Oct. 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 )) = 130.341 - 4.633 - ( 59.894 - max(0, 21.575 - 65.688 + 59.894 )) = 81.595

 Invested Capital (Q: Jan. 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 )) = 134.541 - 4.845 - ( 67.299 - max(0, 22.039 - 69.697 + 67.299 )) = 82.038

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

Value Line  (NAS:VALU) 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, Value Line's WACC % is 12.86%. Value Line's ROC % is 9.64% (calculated using TTM income statement data). Value Line 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.

## Value Line ROC % Related Terms

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## Value Line (Value Line) Business Description

Industry
Comparable Companies
Traded in Other Exchanges
N/A
Address
551 Fifth Avenue, 3rd Floor, New York, NY, USA, 10176-0001
Website
Value Line Inc is a U.S based company. It produces investment periodicals based on underlying research and making available copyright data, including ranking system and other information, to third parties under written agreements for use in third-party managed and marketed investment products and for other purposes. The company markets under well-known brands including Value Line, the Value Line logo, The Value Line Investment Survey, Smart Research, Smarter Investing and The Most Trusted Name in Investment Research. Its only operating segment being Publishing.
Executives
 Glenn J. Muenzer director 357 HARVARD COURT, EAST MEADOW NY 11554 Alfred R Fiore director 1 ANGORA ROAD, WESTPORT CT 06880 Howard A Brecher director, officer: Acting Chairman and Acting CEO VALUE LINE 220 E 42ND ST, SUITE 600, NEW YORK NY 10017 Stephen Anastasio officer: Chief Financial Officer 220 E 42ND STREET, NEW YORK NY 10017 William Edward Reed director 12 KNORR STREET, NORWALK CT 06854 Mary Bernstein director 220 E 42ND STREET, NEW YORK NY 10017 Stephen P Davis director 57 EAST 95TH STREET, NEW YORK NY 10128 Thomas Sarkany director, officer: Secretary 220 EAST 42ND STREET, 6TH FLOOR, NEW YORK NY 10017 Robert M. Perkins, director 220 EAST 42ND STREET, 6TH FLOOR, NEW YORK CITY NY 10017 Ruth O. Legon, director 220 EAST 42ND STREET, 6TH FLOOR, NEW YORK CITY NY 10017 Arnold Bernhard & Co Inc 10 percent owner 220 EAST 42ND STREET 6TH FLOOR, NEW YORK NY 10017 Janet Eakman director 220 E 42ND STREET, NEW YORK NY 10017 Mitchell Eric Appel officer: CFO VALUE LINE INC, 220 EAST 42ND STREET 6TH FLOOR, NEW YORK NY 10017 Edward J Shanahan director 220 EAST 42 STREET, NEW YORK NY 10017 Marianne B Asher director