Articore Group (FRA:WAB0) ROC % : 8.77% (As of Dec. 2023)

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What is Articore Group 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 %. Articore Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 8.77%.

As of today (2024-06-09), Articore Group's WACC % is 15.62%. Articore Group's ROC % is -15.45% (calculated using TTM income statement data). Articore Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Articore Group ROC % Historical Data

The historical data trend for Articore Group'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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Articore Group ROC % Chart

Articore Group Annual Data

Trend

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROC %

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-40.87

-6.00

29.51

-25.54

-46.93

Articore Group Semi-Annual Data
	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial											-2.06	-46.35	-54.20	-38.27	8.77

Articore Group ROC % Calculation

Articore Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-29.831 * ( 1 - -4.98% )	/	( (69.756	+	63.717)	/ 2 )
=	-31.3165838	/	66.7365
=	-46.93 %

where

	Invested Capital		(A: Jun. 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	))
=	126.723	-	39.634	-	( 59.255	-	max(0, 53.151	-	70.484	+	59.255	))
=	69.756

	Invested Capital		(A: Jun. 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	))
=	83.453	-	33.043	-	( 22.128	-	max(0, 45.072	-	31.765	+	22.128	))
=	63.717

Articore Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	6.62 * ( 1 - 17.02% )	/	( (63.717	+	61.585)	/ 2 )
=	5.493276	/	62.651
=	8.77 %

where

	Invested Capital		(Q: Jun. 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	))
=	83.453	-	33.043	-	( 22.128	-	max(0, 45.072	-	31.765	+	22.128	))
=	63.717

	Invested Capital		(Q: 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	))
=	112.244	-	56.565	-	( 53.485	-	max(0, 68.059	-	62.153	+	53.485	))
=	61.585

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

Articore Group (FRA:WAB0) 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, Articore Group's WACC % is 15.62%. Articore Group's ROC % is -15.45% (calculated using TTM income statement data). Articore Group 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.

Articore Group ROC % Related Terms

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Articore Group (FRA:WAB0) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Articore Group Ltd (FRA:WAB0) » Definitions » ROC %

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RDBBF:USA ATG:Australia

Address

697 Collins Street, Level 12, Docklands, Melbourne, VIC, AUS, 3008

Website

https://www.redbubble.com

Articore Group Ltd is an online marketplace that facilitates the sale and purchase of art and designs on a range of products between independent creatives and consumers. The name of the marketplace is Redbubble.com and TeePublic.com. The products are produced and shipped by third-party service providers (i.e. product manufacturers, printers, and shipping companies) referred to as fulfillers. The company's primary geographic markets are Australia, the United States, the United Kingdom, and the rest of the world. The majority of its revenue is derived from the United States.

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