Science in Sport (LSE:SIS) ROC % : -7.14% (As of Jun. 2023)

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What is Science in Sport 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 %. Science in Sport's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was -7.14%.

As of today (2024-06-07), Science in Sport's WACC % is 6.37%. Science in Sport's ROC % is -9.04% (calculated using TTM income statement data). Science in Sport earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Science in Sport ROC % Historical Data

The historical data trend for Science in Sport'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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Science in Sport ROC % Chart

Science in Sport Annual Data

Trend

Mar13

Mar14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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-19.41

-10.42

-3.66

-10.25

-15.67

Science in Sport Semi-Annual Data
	Sep13	Mar14	Sep14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROC %	Get a 7-Day Free Trial															-7.22	-14.93	-23.28	-10.31	-7.14

Science in Sport ROC % Calculation

Science in Sport's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-9.821 * ( 1 - -3.14% )	/	( (59.996	+	69.264)	/ 2 )
=	-10.1293794	/	64.63
=	-15.67 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	73.603	-	8.757	-	( 4.85	-	max(0, 15.419	-	25.976	+	4.85	))
=	59.996

	Invested Capital		(A: Dec. 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	))
=	75.705	-	5.511	-	( 0.93	-	max(0, 22.232	-	24.092	+	0.93	))
=	69.264

Science in Sport's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-4.352 * ( 1 - 0% )	/	( (69.264	+	52.609)	/ 2 )
=	-4.352	/	60.9365
=	-7.14 %

where

	Invested Capital		(Q: Dec. 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	))
=	75.705	-	5.511	-	( 0.93	-	max(0, 22.232	-	24.092	+	0.93	))
=	69.264

	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	))
=	80.788	-	27.962	-	( 1.228	-	max(0, 30.276	-	30.493	+	1.228	))
=	52.609

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

Science in Sport (LSE:SIS) 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, Science in Sport's WACC % is 6.37%. Science in Sport's ROC % is -9.04% (calculated using TTM income statement data). Science in Sport 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.

Science in Sport ROC % Related Terms

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Science in Sport (LSE:SIS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Science in Sport PLC (LSE:SIS) » Definitions » ROC %

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Traded in Other Exchanges

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Address

16-18 Hatton Garden, 2nd Floor, Farringdon, London, GBR, EC1N 8AT

Website

https://www.sisplc.com

Science in Sport PLC is engaged in developing, manufacturing, and marketing sports nutrition products for professional athletes and sports enthusiasts. Its reportable segments are the two brands, SiS and Ph.D. Nutrition. The company's product lines under SiS include Energy Bars, shots, gels, and powders; Hydration Gels, tablets, and powders; Recovery Rebuild Powders; Athlete health Vitamins & supplements. Ph.D. products include Diet range protein; Smart high, low sugar foods, bars, and snacks; Life formulated health products; Performance powder. Its majority of revenue comes from the United Kingdom and includes the Rest of Europe, the USA, and the Rest of the World.

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