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Foxtons Group (FRA:FXG) ROIC % : 5.32% (As of Jun. 2024)


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What is Foxtons Group 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 %. Foxtons Group's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was 5.32%.

As of today (2024-12-15), Foxtons Group's WACC % is 12.24%. Foxtons Group's ROIC % is 3.64% (calculated using TTM income statement data). Foxtons Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Foxtons Group ROIC % Historical Data

The historical data trend for Foxtons Group'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.

Foxtons Group ROIC % Chart

Foxtons Group 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 -3.31 0.97 -0.91 5.01 2.84

Foxtons Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
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 3.29 6.84 4.18 1.80 5.32

Competitive Comparison of Foxtons Group's ROIC %

For the Real Estate Services subindustry, Foxtons Group'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.


Foxtons Group's ROIC % Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Foxtons Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Foxtons Group's ROIC % falls into.



Foxtons Group ROIC % Calculation

Foxtons Group'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 )
=11.364 * ( 1 - 30.45% )/( (254.52 + 301.842)/ 2 )
=7.903662/278.181
=2.84 %

where

Foxtons Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

ROIC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=20.304 * ( 1 - 21.96% )/( (301.842 + 294.324)/ 2 )
=15.8452416/298.083
=5.32 %

where

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


Foxtons Group  (FRA:FXG) 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, Foxtons Group's WACC % is 12.24%. Foxtons Group's ROIC % is 3.64% (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.


Foxtons Group ROIC % Related Terms

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Foxtons Group Business Description

Traded in Other Exchanges
Address
566 Chiswick High Road, Building One, Chiswick Park, London, GBR, W4 5BE
Foxtons Group PLC is an estate agency, providing residential property sales and lettings services in the United Kingdom. It operates in three segments: Sales, Lettings, and Financial Services. The sales segment generates a commission on sales of residential property. The letting segment earns fees from letting and management of residential properties and income from interest earned on tenant's deposits. The Financial Services segment generates commission from the arrangement of mortgages and related products under contracts with financial service providers and receives administration fees from clients. The majority of its revenue comes from the Letting segment.