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PZ Cussons (CHIX:PZCL) ROIC % : 6.17% (As of May. 2024)


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What is PZ Cussons 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 %. PZ Cussons's annualized return on invested capital (ROIC %) for the quarter that ended in May. 2024 was 6.17%.

As of today (2024-10-31), PZ Cussons's WACC % is 8.94%. PZ Cussons's ROIC % is -6.29% (calculated using TTM income statement data). PZ Cussons earns returns that do not match up to its cost of capital. It will destroy value as it grows.


PZ Cussons ROIC % Historical Data

The historical data trend for PZ Cussons'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.

* Premium members only.

PZ Cussons ROIC % Chart

PZ Cussons Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.34 6.70 8.20 7.11 -5.95

PZ Cussons Semi-Annual Data
Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24
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 8.15 7.32 7.31 -13.11 6.17

Competitive Comparison of PZ Cussons's ROIC %

For the Household & Personal Products subindustry, PZ Cussons'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.


PZ Cussons's ROIC % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, PZ Cussons's ROIC % distribution charts can be found below:

* The bar in red indicates where PZ Cussons's ROIC % falls into.



PZ Cussons ROIC % Calculation

PZ Cussons's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in May. 2024 is calculated as:

ROIC % (A: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: May. 2023 ) + Invested Capital (A: May. 2024 ))/ count )
=-44.1 * ( 1 - 25.13% )/( (605.7 + 503.9)/ 2 )
=-33.01767/554.8
=-5.95 %

where

PZ Cussons's annualized Return on Invested Capital (ROIC %) for the quarter that ended in May. 2024 is calculated as:

ROIC % (Q: May. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2023 ) + Invested Capital (Q: May. 2024 ))/ count )
=10.6 * ( 1 - -182.35% )/( (466 + 503.9)/ 2 )
=29.9291/484.95
=6.17 %

where

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


PZ Cussons  (CHIX:PZCl) 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, PZ Cussons's WACC % is 8.94%. PZ Cussons's ROIC % is -6.29% (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.


PZ Cussons ROIC % Related Terms

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PZ Cussons Business Description

Traded in Other Exchanges
Address
Manchester Business Park, 3500 Aviator Way, Manchester, GBR, M22 5TG
PZ Cussons PLC is a household and personal-care company. Its main business categories are personal care and beauty, home care, food and nutrition, and electricals. Its key geographies are Africa (Ghana, Nigeria, and Kenya); Europe (the UK, Poland, and Greece); Asia (Australia, Thailand, and Indonesia); and the US The personal care and beauty segment offers shower gels, soaps, and haircare products under brands like Cussons Baby and Carex. Thu home care division offers dishwashers and laundry detergents under the Zip, Radiant, and Morning Fresh brands. The food and nutrition division provides organic yogurts, olive oil, and baby food under the Minerva and Rafferty's Garden brands. The electrical division offers electrical household items such as audiovisual products and air conditioners.

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