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Lorne Park Capital Partners (TSXV:LPC) ROIC % : 2.37% (As of Sep. 2024)


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What is Lorne Park Capital Partners 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 %. Lorne Park Capital Partners's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 2.37%.

As of today (2024-12-15), Lorne Park Capital Partners's WACC % is 2.50%. Lorne Park Capital Partners's ROIC % is 0.70% (calculated using TTM income statement data). Lorne Park Capital Partners earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Lorne Park Capital Partners ROIC % Historical Data

The historical data trend for Lorne Park Capital Partners'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.

Lorne Park Capital Partners ROIC % Chart

Lorne Park Capital Partners 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 15.30 1.63 7.30 4.27 1.62

Lorne Park Capital Partners 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 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 3.19 0.51 2.07 -3.00 2.37

Competitive Comparison of Lorne Park Capital Partners's ROIC %

For the Asset Management subindustry, Lorne Park Capital Partners'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.


Lorne Park Capital Partners's ROIC % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Lorne Park Capital Partners's ROIC % distribution charts can be found below:

* The bar in red indicates where Lorne Park Capital Partners's ROIC % falls into.



Lorne Park Capital Partners ROIC % Calculation

Lorne Park Capital Partners'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 )
=3.099 * ( 1 - 77.73% )/( (36.872 + 48.512)/ 2 )
=0.6901473/42.692
=1.62 %

where

Lorne Park Capital Partners'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 )
=3.96 * ( 1 - 73.45% )/( (46.969 + 41.649)/ 2 )
=1.05138/44.309
=2.37 %

where

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


Lorne Park Capital Partners  (TSXV:LPC) 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, Lorne Park Capital Partners's WACC % is 2.50%. Lorne Park Capital Partners's ROIC % is 0.70% (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.


Lorne Park Capital Partners ROIC % Related Terms

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Lorne Park Capital Partners Business Description

Traded in Other Exchanges
N/A
Address
1295 Cornwall Road, Unit A3, Oakville, ON, CAN, L6J 7T5
Lorne Park Capital Partners Inc is a Canada-based company engaged in building a network of boutique investment managers and wealth advisors. The company provides portfolio management services to its Canadian investors, estates, trusts, and foundations.
Executives
Christopher James Dingle Director
Stephen J. Meehan Director, Senior Officer
Carlo Pannella Senior Officer
Robert Darrell Sewell Director, Senior Officer
Julianna Varpalotai-xavier Senior Officer
Craig William James Ellis Senior Officer

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