FWONB (Liberty Formula One Group) ROIC % : 4.82% (As of Sep. 2024)

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What is Liberty Formula One 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 %. Liberty Formula One Group's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 4.82%.

As of today (2024-12-15), Liberty Formula One Group's WACC % is 8.64%. Liberty Formula One Group's ROIC % is 4.17% (calculated using TTM income statement data). Liberty Formula One Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Liberty Formula One Group ROIC % Historical Data

The historical data trend for Liberty Formula One 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.

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Liberty Formula One Group ROIC % Chart

Liberty Formula One Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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-0.25

-3.68

0.31

3.93

2.83

Liberty Formula One Group 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															3.50	6.15	3.47	3.05	4.82

Competitive Comparison of Liberty Formula One Group's ROIC %

For the Entertainment subindustry, Liberty Formula One 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.

Liberty Formula One Group's ROIC % Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Liberty Formula One Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Liberty Formula One Group's ROIC % falls into.

Liberty Formula One Group ROIC % Calculation

Liberty Formula One 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 )
=	297 * ( 1 - 12.8% )	/	( (9430	+	8871)	/ 2 )
=	258.984	/	9150.5
=	2.83 %

where

	Invested Capital		(A: Dec. 2022 )
=	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	))
=	11016	-	396	-	( 1733	-	max(0, 833	-	2023	+	1733	))
=	9430

	Invested Capital		(A: Dec. 2023 )
=	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	))
=	10267	-	472	-	( 1408	-	max(0, 787	-	1711	+	1408	))
=	8871

Liberty Formula One Group'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 )
=	452 * ( 1 - -1.74% )	/	( (9560	+	9503)	/ 2 )
=	459.8648	/	9531.5
=	4.82 %

where

	Invested Capital		(Q: Jun. 2024 )
=	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	))
=	10810	-	428	-	( 1491	-	max(0, 1214	-	2036	+	1491	))
=	9560

	Invested Capital		(Q: Sep. 2024 )
=	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	))
=	11980	-	404	-	( 2666	-	max(0, 1218	-	3291	+	2666	))
=	9503

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) data.

Liberty Formula One Group (OTCPK:FWONB) 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, Liberty Formula One Group's WACC % is 8.64%. Liberty Formula One Group's ROIC % is 4.17% (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.

Liberty Formula One Group ROIC % Related Terms

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Liberty Formula One Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Liberty Formula One Group (OTCPK:FWONB) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

FWONK:USA FWONA:USA FWONK:Mexico 0JUJ:UK LM0F:Germany

Address

12300 Liberty Boulevard, Englewood, CO, USA, 80112

Website

http://www.libertymedia.com

Formula One Group controls the exclusive commercial and promotional rights to the FIA Formula One World Championship series, and the monetization of those rights is the primary business of the group. The firm is responsible for development and promotion of the Formula One race series in concert with its three partners: the FIA (the regulatory body), the teams that participate in the series, and the series' commercial partners, which include the race promoters, broadcasters, sponsors, and advertisers. The F1 schedule in 2023 will encompass 23 races held on five continents. Formula One Group is a subsidiary of Liberty Media, which purchased the firm in January 2017. Formula One stock is a tracking stock for the assets under Formula One Group with Liberty Media.