True Religion Apparel, (FRA:UYO) ROC % : 0.98% (As of Mar. 2013)

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What is True Religion Apparel, ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. True Religion Apparel,'s annualized return on capital (ROC %) for the quarter that ended in Mar. 2013 was 0.98%.

As of today (2024-05-19), True Religion Apparel,'s WACC % is 0.00%. True Religion Apparel,'s ROC % is 0.00% (calculated using TTM income statement data). True Religion Apparel, earns returns that do not match up to its cost of capital. It will destroy value as it grows.

True Religion Apparel, ROC % Historical Data

The historical data trend for True Religion Apparel,'s ROC % 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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True Religion Apparel, ROC % Chart

True Religion Apparel, Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

ROC %

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59.16

49.29

43.49

39.62

31.63

True Religion Apparel, Quarterly Data
	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13
ROC %	Get a 7-Day Free Trial															32.10	27.60	25.73	30.33	0.98

True Religion Apparel, ROC % Calculation

True Religion Apparel,'s annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2012 is calculated as:

	ROC % (A: Dec. 2012 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2011 )	+	Invested Capital (A: Dec. 2012 ))	/ count )
=	59.525 * ( 1 - 40.29% )	/	( (93.494	+	131.26)	/ 2 )
=	35.5423775	/	112.377
=	31.63 %

where

	Invested Capital		(A: Dec. 2011 )
=	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	))
=	273.716	-	27.944	-	( 152.278	-	max(0, 31.096	-	228.523	+	152.278	))
=	93.494

	Invested Capital		(A: Dec. 2012 )
=	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	))
=	309.156	-	36.051	-	( 141.845	-	max(0, 36.051	-	233.343	+	141.845	))
=	131.26

True Religion Apparel,'s annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2013 is calculated as:

	ROC % (Q: Mar. 2013 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2012 )	+	Invested Capital (Q: Mar. 2013 ))	/ count )
=	9.48 * ( 1 - 86.56% )	/	( (131.26	+	129.288)	/ 2 )
=	1.274112	/	130.274
=	0.98 %

where

	Invested Capital		(Q: Dec. 2012 )
=	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	))
=	309.156	-	36.051	-	( 141.845	-	max(0, 36.051	-	233.343	+	141.845	))
=	131.26

	Invested Capital		(Q: Mar. 2013 )
=	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	))
=	314.119	-	35.339	-	( 149.492	-	max(0, 38.904	-	240.791	+	149.492	))
=	129.288

Note: The Operating Income data used here is four times the quarterly (Mar. 2013) data.

True Religion Apparel, (FRA:UYO) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, True Religion Apparel,'s WACC % is 0.00%. True Religion Apparel,'s ROC % is 0.00% (calculated using TTM income statement data). True Religion Apparel, earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % 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.

True Religion Apparel, ROC % Related Terms

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True Religion Apparel, (FRA:UYO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » True Religion Apparel, Inc. (FRA:UYO) » Definitions » ROC %

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Address

Website

True Religion Apparel, Inc. is incorporated in Delaware. The Company is engaged in designing, marketing, selling and distributing fashion apparel under the brand name "True Religion Brand Jeans" to fashion-conscious consumers on six continents, including North America, Europe, Asia, Australia, Africa and South America. It operates in four primary business segments: U.S. Consumer Direct, International, U.S. Wholesale, and Core Services. It sells directly to consumers in the United States through full-price retail stores, outlet stores and through its retail internet site located at www.truereligionbrandjeans.com. Its International sales are made through a variety of channels, including subsidiaries and a joint venture that operate retail stores and sell to wholesale customers who operate retail stores; distributors who warehouse products at their expense and then ship to, and collect payment from, their customers; and directly to wholesale customers who operate retail stores. In addition, it selectively licenses to third parties the right to use its various trademarks in connection with the manufacture and sale of designated products in specified geographical areas for specified periods. This licensing business is included in its Core Services segment. Its corporate operations, which include the design, production, marketing, distribution, credit, customer service, information technology, accounting, executive, legal, and human resources departments, are also included in the Core Services segment. The Company markets its products to domestic and international wholesale customers by attendance at industry trade shows. Its collections are also presented to wholesale customers in its showrooms, located in New York City, Los Angeles, Hong Kong, Seoul, Tokyo, London, Milan and Dusseldorf. The Company competes with numerous designers and manufacturers of apparel and accessories, domestic and foreign, including 7 for All Mankind, AG Adriano Goldschmied, Citizens of Humanity, Diesel, G-Star, Hudson Jeans, J Brand, Joe's Jeans and Levi Strauss & Co. The Company is subject to customs, truth-in-advertising and other laws, including consumer protection regulations and zoning and occupancy ordinances that regulate retailers generally and/or govern the promotion and sale of merchandise and the operation of retail stores.

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