Believe (XPAR:BLV) ROC % : 0.64% (As of Jun. 2023)

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What is Believe 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 %. Believe's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was 0.64%.

As of today (2024-06-10), Believe's WACC % is 13.02%. Believe's ROC % is -1.81% (calculated using TTM income statement data). Believe earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Believe ROC % Historical Data

The historical data trend for Believe'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.

* Premium members only.

Believe ROC % Chart

Believe Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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2.55

-8.99

-5.85

-8.58

-3.81

Believe Semi-Annual Data
	Dec18	Dec19	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial				-4.27	-28.09	-6.14	0.64	-7.05

Believe ROC % Calculation

Believe'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 )
=	-21.306 * ( 1 - -79.89% )	/	( (418.655	+	474.944)	/ 2 )
=	-38.3273634	/	446.7995
=	-8.58 %

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	))
=	912.839	-	413.465	-	( 263.431	-	max(0, 448.664	-	529.383	+	263.431	))
=	418.655

	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	))
=	1004.842	-	489.282	-	( 304.292	-	max(0, 556.809	-	597.425	+	304.292	))
=	474.944

Believe'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 )
=	6.59 * ( 1 - 47.87% )	/	( (474.944	+	606.614)	/ 2 )
=	3.435367	/	540.779
=	0.64 %

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	))
=	1004.842	-	489.282	-	( 304.292	-	max(0, 556.809	-	597.425	+	304.292	))
=	474.944

	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	))
=	1068.72	-	524.806	-	( 212.085	-	max(0, 619.294	-	556.594	+	212.085	))
=	606.614

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

Believe (XPAR:BLV) 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, Believe's WACC % is 13.02%. Believe's ROC % is -1.81% (calculated using TTM income statement data). Believe 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.

Believe ROC % Related Terms

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Believe (XPAR:BLV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Believe SA (XPAR:BLV) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

8T6:Germany

Address

24 rue Toulouse Lautrec, Paris, FRA, 75017

Website

https://www.believemusic.com

Believe SA specializes in the sale and promotion of audio and video content from artists and independent labels. The Company has identified two operating segments which is Premium Solutions and Automated Solutions. Premium solutions this consists mainly of the sale, promotion and delivery of digital content provided by artists and labels for which the Group is responsible for developing their catalog on digital platforms and social media, as appropriate, using a split revenue model. Automated Solutions whereby the Group enablesartists, via its TuneCore digital platform, to distribute their audio content in an automated manner to streaming and social media platforms in return for a subscription fee or margin. The company generated majority of its revenue from Premium Solutions.

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