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Bahrain Family Leisure Co BSC (BAH:FAMILY) ROIC % : -4.90% (As of Sep. 2024)


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What is Bahrain Family Leisure Co BSC ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Bahrain Family Leisure Co BSC's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -4.90%.

As of today (2024-12-14), Bahrain Family Leisure Co BSC's WACC % is 9.59%. Bahrain Family Leisure Co BSC's ROIC % is -6.38% (calculated using TTM income statement data). Bahrain Family Leisure Co BSC earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Bahrain Family Leisure Co BSC ROIC % Historical Data

The historical data trend for Bahrain Family Leisure Co BSC's ROIC % 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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Bahrain Family Leisure Co BSC ROIC % Chart

Bahrain Family Leisure Co BSC Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.49 -10.46 -7.02 -3.83 -3.52

Bahrain Family Leisure Co BSC Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % 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 0.75 -5.13 -8.44 -7.39 -4.90

Competitive Comparison of Bahrain Family Leisure Co BSC's ROIC %

For the Restaurants subindustry, Bahrain Family Leisure Co BSC's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Bahrain Family Leisure Co BSC's ROIC % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Bahrain Family Leisure Co BSC's ROIC % distribution charts can be found below:

* The bar in red indicates where Bahrain Family Leisure Co BSC's ROIC % falls into.



Bahrain Family Leisure Co BSC ROIC % Calculation

Bahrain Family Leisure Co BSC's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-0.064 * ( 1 - 0% )/( (1.954 + 1.679)/ 2 )
=-0.064/1.8165
=-3.52 %

where

Bahrain Family Leisure Co BSC's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-0.088 * ( 1 - 0% )/( (1.799 + 1.79)/ 2 )
=-0.088/1.7945
=-4.90 %

where

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


Bahrain Family Leisure Co BSC  (BAH:FAMILY) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Bahrain Family Leisure Co BSC's WACC % is 9.59%. Bahrain Family Leisure Co BSC's ROIC % is -6.38% (calculated using TTM income statement data).


Be Aware

Like ROE % and ROA %, ROIC % 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.


Bahrain Family Leisure Co BSC ROIC % Related Terms

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Bahrain Family Leisure Co BSC Business Description

Traded in Other Exchanges
N/A
Address
10th Floor, Gulf Executive Offices, Block No. 338, P.O. Box 11612, Adliya, Manama, BHR
Bahrain Family Leisure Co BSC owns and operates franchise restaurants in the Kingdom under the name of Bennigan's, Cucina Italiana and Kazbah Catering. Bennigan's home delivery offers a full menu direct at the doorstep.The principal activities of the Company are operating restaurants, providing services related to family entertainment, supply of amusement related equipment and investing in businesses with similar objectives to those of the Company. Cucina Italiana is prepared with only the freshest and finest hand-picked ingredients, making the dishes nothing less than delicious. All dishes are made from fresh vegetables, succulent meat, hand-tossed dough and tomato sauce. Kazbah catering offers contract catering services to businesses, education and government facilities.

Bahrain Family Leisure Co BSC Headlines

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