BLLYW (Bally Total Fitness Holding) ROIC % : 4.20% (As of Jun. 2007)

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What is Bally Total Fitness Holding 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 %. Bally Total Fitness Holding's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2007 was 4.20%.

As of today (2024-10-31), Bally Total Fitness Holding's WACC % is 0.00%. Bally Total Fitness Holding's ROIC % is 0.00% (calculated using TTM income statement data). Bally Total Fitness Holding earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Bally Total Fitness Holding ROIC % Historical Data

The historical data trend for Bally Total Fitness Holding'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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Bally Total Fitness Holding ROIC % Chart

Bally Total Fitness Holding Annual Data

Trend

Dec97

Dec98

Dec99

Dec00

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

ROIC %

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-467.66

853.49

7.11

14.61

10.58

Bally Total Fitness Holding Quarterly Data
	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04	Dec04	Mar05	Jun05	Sep05	Dec05	Mar06	Jun06	Sep06	Dec06	Mar07	Jun07
ROIC %	Get a 7-Day Free Trial															16.17	11.30	23.77	3.21	4.20

Competitive Comparison of Bally Total Fitness Holding's ROIC %

For the Leisure subindustry, Bally Total Fitness Holding'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.

Bally Total Fitness Holding's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Bally Total Fitness Holding's ROIC % distribution charts can be found below:

* The bar in red indicates where Bally Total Fitness Holding's ROIC % falls into.

Bally Total Fitness Holding ROIC % Calculation

Bally Total Fitness Holding's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2006 is calculated as:

	ROIC % (A: Dec. 2006 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2005 )	+	Invested Capital (A: Dec. 2006 ))	/ count )
=	114.114 * ( 1 - 13.32% )	/	( (755.624	+	1113.906)	/ 2 )
=	98.9140152	/	934.765
=	10.58 %

where

	Invested Capital		(A: Dec. 2005 )
=	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	))
=	495.099	-	159.482	-	( 17.454	-	max(0, 479.705	-	59.698	+	17.454	))
=	755.624

	Invested Capital		(A: Dec. 2006 )
=	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	))
=	396.771	-	166.33	-	( 34.799	-	max(0, 959.798	-	76.333	+	34.799	))
=	1113.906

Bally Total Fitness Holding's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2007 is calculated as:

	ROIC % (Q: Jun. 2007 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2007 )	+	Invested Capital (Q: Jun. 2007 ))	/ count )
=	56.112 * ( 1 - -3.37% )	/	( (1397.82	+	1364.737)	/ 2 )
=	58.0029744	/	1381.2785
=	4.20 %

where

	Invested Capital		(Q: Mar. 2007 )
=	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	))
=	431.866	-	162.027	-	( 71.873	-	max(0, 1242.825	-	114.844	+	71.873	))
=	1397.82

	Invested Capital		(Q: Jun. 2007 )
=	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	))
=	411.379	-	169.623	-	( 70.761	-	max(0, 1231.991	-	109.01	+	70.761	))
=	1364.737

Note: The Operating Income data used here is four times the quarterly (Jun. 2007) data.

Bally Total Fitness Holding (GREY:BLLYW) 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, Bally Total Fitness Holding's WACC % is 0.00%. Bally Total Fitness Holding's ROIC % is 0.00% (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.

Bally Total Fitness Holding ROIC % Related Terms

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Bally Total Fitness Holding Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Bally Total Fitness Holding Corp (GREY:BLLYW) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

8700 West Bryn Mawr Avenue, Chicago, IL, USA, 60631

Website

http://www.ballyfitness.com

Bally Total Fitness Holding is the largest commercial operator of fitness centers in the United States in terms of revenue, number of members, and square footage of facilities. The company operates more than 400 fitness centers with approximately 4 million members. Its fitness centers are generally 30,000 square feet in size and include such amenities as a workout area, sauna and steam facilities, a lap pool, free-weight rooms, aerobic-exercise rooms, an indoor jogging track, and racquetball courts.

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