ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. JCK Legacy Co's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2020 was -6.61%.
As of today (2024-05-02), JCK Legacy Co's WACC % is 9.89%. JCK Legacy Co's ROIC % is -1.05% (calculated using TTM income statement data).
JCK Legacy Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
JCK Legacy Co ROIC % Historical Data
The historical data trend for JCK Legacy Co'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.
For the Publishing subindustry, JCK Legacy Co'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.
JCK Legacy Co's ROIC % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, JCK Legacy Co's ROIC % distribution charts can be found below:
* The bar in red indicates where JCK Legacy Co's ROIC % falls into.
JCK Legacy Co ROIC % Calculation
JCK Legacy Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2019 is calculated as:
Note:
The Operating Income data used here is four times the quarterly (Jun. 2020) 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.
JCK Legacy Co (FRA:MCAB) 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, JCK Legacy Co's WACC % is 9.89%. JCK Legacy Co's ROIC % is -1.05% (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.
JCK Legacy Co ROIC % Related Terms
Thank you for viewing the detailed overview of JCK Legacy Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
The McClatchy Co provides independent local journalism to various communities with operations in few states, as well as selected national news coverage through its Washington, D.C. bureau. It also provides a full suite of digital marketing services, through local sales teams and excelerate, its national digital marketing agency. The company is a publisher of brands such as the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News & Observer, and the Fort Worth Star-Telegram. Its two operating segments are the Western segment that consists of media companies operations in California, Washington, and the Central region; the Eastern segment consists of media company operations in the Carolinas and the East and Southeast regions.
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