Hallenstein Glassons Holdings (NZSE:HLG) ROIC % : 2.11% (As of Jul. 2024)

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What is Hallenstein Glassons Holdings 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 %. Hallenstein Glassons Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jul. 2024 was 2.11%.

As of today (2025-03-25), Hallenstein Glassons Holdings's WACC % is 8.82%. Hallenstein Glassons Holdings's ROIC % is 5.89% (calculated using TTM income statement data). Hallenstein Glassons Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Hallenstein Glassons Holdings ROIC % Historical Data

The historical data trend for Hallenstein Glassons Holdings'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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Hallenstein Glassons Holdings ROIC % Chart

Hallenstein Glassons Holdings Annual Data

Trend

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Jul24

ROIC %

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3.76

5.75

1.11

4.08

6.01

Hallenstein Glassons Holdings Semi-Annual Data
	Jan15	Jul15	Jan16	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24	Jul24
ROIC %	Get a 7-Day Free Trial															1.32	10.05	-2.19	10.09	2.11

Competitive Comparison of Hallenstein Glassons Holdings's ROIC %

For the Apparel Retail subindustry, Hallenstein Glassons Holdings'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.

Hallenstein Glassons Holdings's ROIC % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Hallenstein Glassons Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Hallenstein Glassons Holdings's ROIC % falls into.

Hallenstein Glassons Holdings ROIC % Calculation

Hallenstein Glassons Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jul. 2024 is calculated as:

	ROIC % (A: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2023 )	+	Invested Capital (A: Jul. 2024 ))	/ count )
=	15.427 * ( 1 - 33.79% )	/	( (164.803	+	175.291)	/ 2 )
=	10.2142167	/	170.047
=	6.01 %

where

	Invested Capital		(A: Jul. 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	))
=	202.569	-	21.992	-	( 32.478	-	max(0, 55.07	-	70.844	+	32.478	))
=	164.803

	Invested Capital		(A: Jul. 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	))
=	219.015	-	25.228	-	( 45.915	-	max(0, 63.315	-	81.811	+	45.915	))
=	175.291

Hallenstein Glassons Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jul. 2024 is calculated as:

	ROIC % (Q: Jul. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jan. 2024 )	+	Invested Capital (Q: Jul. 2024 ))	/ count )
=	6.27 * ( 1 - 40% )	/	( (180.496	+	175.291)	/ 2 )
=	3.762	/	177.8935
=	2.11 %

where

	Invested Capital		(Q: Jan. 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	))
=	208.927	-	9.154	-	( 43.011	-	max(0, 54.957	-	74.234	+	43.011	))
=	180.496

	Invested Capital		(Q: Jul. 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	))
=	219.015	-	25.228	-	( 45.915	-	max(0, 63.315	-	81.811	+	45.915	))
=	175.291

Note: The Operating Income data used here is two times the semi-annual (Jul. 2024) data.

Hallenstein Glassons Holdings (NZSE:HLG) 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, Hallenstein Glassons Holdings's WACC % is 8.82%. Hallenstein Glassons Holdings's ROIC % is 5.89% (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.

Hallenstein Glassons Holdings ROIC % Related Terms

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Hallenstein Glassons Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Hallenstein Glassons Holdings Ltd (NZSE:HLG) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

235 - 237 Broadway, P.O. Box 91148, Level 3, Newmarket, Auckland, NZL, 1023

Website

https://www.hallensteinglasson.co.nz

Hallenstein Glassons Holdings Ltd along with its subsidiaries is engaged in retailing men's and women's apparel. Its operating segment includes Glassons New Zealand; Glassons Australia; Hallenstein; Property and others. The company generates maximum revenue from the Glassons New Zealand segment.