LumX Group (XSWX:LUMX) ROC % : -11.58% (As of Dec. 2019)

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What is LumX Group 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 %. LumX Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2019 was -11.58%.

As of today (2024-06-13), LumX Group's WACC % is 0.00%. LumX Group's ROC % is 0.00% (calculated using TTM income statement data). LumX Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

LumX Group ROC % Historical Data

The historical data trend for LumX Group'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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LumX Group ROC % Chart

LumX Group Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

ROC %

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-10.23

-18.12

-18.91

-25.37

-13.78

LumX Group Semi-Annual Data
	Jun10	Dec10	Jun11	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19
ROC %	Get a 7-Day Free Trial															-13.10	-27.76	-23.55	-15.77	-11.58

LumX Group ROC % Calculation

LumX Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2019 is calculated as:

	ROC % (A: Dec. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2018 )	+	Invested Capital (A: Dec. 2019 ))	/ count )
=	-3.752 * ( 1 - -19.28% )	/	( (33.446	+	31.503)	/ 2 )
=	-4.4753856	/	32.4745
=	-13.78 %

where

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	31.828	-	4.923	-	( 0.746	-	max(0, 9.659	-	3.118	+	0.746	))
=	33.446

	Invested Capital		(A: Dec. 2019 )
=	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	))
=	27.458	-	3.179	-	( 1.677	-	max(0, 11.596	-	4.372	+	1.677	))
=	31.503

LumX Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2019 is calculated as:

	ROC % (Q: Dec. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2019 )	+	Invested Capital (Q: Dec. 2019 ))	/ count )
=	-3.478 * ( 1 - -13.19% )	/	( (36.466	+	31.503)	/ 2 )
=	-3.9367482	/	33.9845
=	-11.58 %

where

	Invested Capital		(Q: Jun. 2019 )
=	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	))
=	35.015	-	3.914	-	( 2.649	-	max(0, 10.722	-	5.357	+	2.649	))
=	36.466

	Invested Capital		(Q: Dec. 2019 )
=	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	))
=	27.458	-	3.179	-	( 1.677	-	max(0, 11.596	-	4.372	+	1.677	))
=	31.503

Note: The Operating Income data used here is two times the semi-annual (Dec. 2019) data.

LumX Group (XSWX:LUMX) 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, LumX Group's WACC % is 0.00%. LumX Group's ROC % is 0.00% (calculated using TTM income statement data). LumX Group 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.

LumX Group ROC % Related Terms

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LumX Group (XSWX:LUMX) Business Description

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GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » LumX Group Ltd (XSWX:LUMX) » Definitions » ROC %

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Address

Martello Court, Admiral Park, Saint Peter Port, GGY, GY1 3HB

Website

http://www.lumxgroup.com

LumX Group Ltd is a holding company, which engages in the provision of investment, risk management, and structuring solutions to a primarily institutional client base. The company offers a full suite of products and services focused on alternative investments, multi-asset portfolio management, and risk management services. It operates through the following geographic areas: Europe, Asia Pacific, the Cayman Islands, North America, and the British Virgin Islands.

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