ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Live Co Group's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was 6.92%.
As of today (2024-05-26), Live Co Group's WACC % is 5.59%. Live Co Group's ROIC % is -100.29% (calculated using TTM income statement data).
Live Co Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Live Co Group ROIC % Historical Data
The historical data trend for Live Co Group'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 Entertainment subindustry, Live Co Group'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.
Live Co Group's ROIC % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Live Co Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Live Co Group's ROIC % falls into.
Live Co Group ROIC % Calculation
Live Co Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Jun. 2023) 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.
Live Co Group (LSE:LVCG) 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, Live Co Group's WACC % is 5.59%. Live Co Group's ROIC % is -100.29% (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.
Live Co Group ROIC % Related Terms
Thank you for viewing the detailed overview of Live Co Group's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Live Co Group PLC is a UK-based sports marketing and event management company. The principal activities of the Group are to create and provide content for BRICKLIVE shows and events worldwide and provide access to international sports and entertainment events via its LCSE division. Its operating segment includes Models and Sets; Tours and Trails and Sports and Entertainment, majority of revenue is generated from the tours and trails segment. The company's geographical segments are the United Kingdom, Europe, the United States, South America, Asia, and the Middle East and Africa where the majority of revenue is generated from the United Kingdom.
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