GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » John Wiley & Sons Inc (NYSE:WLY) » Definitions » ROC %

WLY (John Wiley & Sons) ROC % : 8.46% (As of Oct. 2024)


View and export this data going back to 1990. Start your Free Trial

What is John Wiley & Sons 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 %. John Wiley & Sons's annualized return on capital (ROC %) for the quarter that ended in Oct. 2024 was 8.46%.

As of today (2024-12-14), John Wiley & Sons's WACC % is 7.89%. John Wiley & Sons's ROC % is -30.56% (calculated using TTM income statement data). John Wiley & Sons earns returns that do not match up to its cost of capital. It will destroy value as it grows.


John Wiley & Sons ROC % Historical Data

The historical data trend for John Wiley & Sons'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.

John Wiley & Sons ROC % Chart

John Wiley & Sons Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.78 5.38 4.31 3.20 7.87

John Wiley & Sons Quarterly Data
Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24
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 8.87 7.40 5.26 -0.29 8.46

John Wiley & Sons ROC % Calculation

John Wiley & Sons's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2024 is calculated as:

ROC % (A: Apr. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Apr. 2023 ) + Invested Capital (A: Apr. 2024 ))/ count )
=223.751 * ( 1 - -7.1% )/( (3177.357 + 2915.637)/ 2 )
=239.637321/3046.497
=7.87 %

where

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))
=3108.81 - 285.727 - ( 106.714 - max(0, 895.553 - 541.279+106.714))
=3177.357

Invested Capital(A: Apr. 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))
=2725.495 - 229.098 - ( 83.249 - max(0, 873.282 - 454.042+83.249))
=2915.637

John Wiley & Sons's annualized Return on Capital (ROC %) for the quarter that ended in Oct. 2024 is calculated as:

ROC % (Q: Oct. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jul. 2024 ) + Invested Capital (Q: Oct. 2024 ))/ count )
=271.04 * ( 1 - 17.33% )/( (2726.074 + 2569.048)/ 2 )
=224.068768/2647.561
=8.46 %

where

Invested Capital(Q: Jul. 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))
=2652.058 - 221.945 - ( 82.545 - max(0, 688.791 - 392.83+82.545))
=2726.074

Invested Capital(Q: Oct. 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))
=2608.858 - 230.968 - ( 75.536 - max(0, 561.471 - 370.313+75.536))
=2569.048

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


John Wiley & Sons  (NYSE:WLY) 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, John Wiley & Sons's WACC % is 7.89%. John Wiley & Sons's ROC % is -30.56% (calculated using TTM income statement data). John Wiley & Sons 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.


John Wiley & Sons ROC % Related Terms

Thank you for viewing the detailed overview of John Wiley & Sons's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


John Wiley & Sons Business Description

Traded in Other Exchanges
Address
111 River Street, Hoboken, NJ, USA, 07030
John Wiley & Sons Inc is a provider of academic journals, books, pre- and post-hire assessments and training, test preparation materials, and online education program management solutions. The company's reportable segments are; Research, Learning, Held for Sale or Sold. The majority of the company's revenue is generated from the Research segment which provides peer-reviewed scientific, technical, and medical (STM) publishing, content platforms, and related services to academic, corporate, and government customers, academic societies, and individual researchers. Geographically, it derives maximum revenue from the United States and the rest from the United Kingdom, China, Japan, Canada, and other countries.
Executives
Deirdre P. Silver officer: EVP, General Counsel C/O 111 RIVER STREET, HOBOKEN NJ 07030
Christopher Caridi officer: SVP, Global Corp Controller C/O 111 RIVER STREET, HOBOKEN NJ 07030
Todd Zipper officer: EVP & GM, Talent C/O 111 RIVER STREET, HOBOKEN NJ 07030
Brian A. Napack director, officer: President & CEO C/O JOHN WILEY & SONS, INC., 111 RIVER STREET, HOBOKEN NJ 07030
Kevin Monaco officer: SVP, Treasurer & Tax 2 PARK AVENUE, NEW YORK NY 10016
Matthew Leavy officer: EVP & GM, APL C/O 111 RIVER STREET, HOBOKEN NJ 07030
Aref Matin officer: EVP, Chief Technology Officer C/O, 111 RIVER STREET, HOBOKEN NJ 07030
Danielle Mcmahan officer: EVP, Chief People and Bus Ops C/O 111 RIVER STREET, HOBOKEN NJ 07030
Tassell Christina Van officer: EVP, Chief Financial Officer C/O 111 RIVER STREET, HOBOKEN NJ 07030
Inder M Singh director C/O UNISYS CORPORATION, 801 LAKEVIEW DRIVE, SUITE 100, BLUE BELL PA 19422
George Bell director 117 KENDRICK STREET, STE 200, NEEDHAM MA 02494
David C Dobson director C/O 111 RIVER ST., HOBOKEN NJ 07030
Mari Jean Baker director 125 SHAWNEE PASS, PORTOLA VALLEY CA 94028
Laurie A Leshin director 111 RIVER STREET, HOBOKEN NJ 07030
Beth A Birnbaum director C/O 111 RIVER STREET, HOBOKEN NJ 07030