Restaurant Group (The) (LSE:RTN) ROCE % : 4.95% (As of Jun. 2023)

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What is Restaurant Group (The) ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Restaurant Group (The)'s annualized ROCE % for the quarter that ended in Jun. 2023 was 4.95%.

Restaurant Group (The) ROCE % Historical Data

The historical data trend for Restaurant Group (The)'s ROCE % 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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Restaurant Group (The) ROCE % Chart

Restaurant Group (The) Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

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2.58

-2.46

-9.77

0.63

-4.54

Restaurant Group (The) Semi-Annual Data
	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23
ROCE %	Get a 7-Day Free Trial															-6.62	7.81	-1.55	-7.88	4.95

Restaurant Group (The) ROCE % Calculation

Restaurant Group (The)'s annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	-48	/	( ( (1353.7 - 204.5)	+	(1183.5 - 218) )	/ 2 )
	=	-48	/	( (1149.2	+	965.5)	/ 2 )
	=	-48	/	1057.35
	=	-4.54 %

Restaurant Group (The)'s ROCE % of for the quarter that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2023 )		(Q: Dec. 2022 )		(Q: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2023 )		(Q: Dec. 2022 )		(Q: Jun. 2023 )
	=	47.6	/	( ( (1183.5 - 218)	+	(1175.5 - 216.1) )	/ 2 )
	=	47.6	/	( ( 965.5	+	959.4 )	/ 2 )
	=	47.6	/	962.45
	=	4.95 %

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

Restaurant Group (The) (LSE:RTN) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Restaurant Group (The) ROCE % Related Terms

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Restaurant Group (The) (LSE:RTN) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Restaurant Group (The) PLC (LSE:RTN) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

5-7 Marshalsea Road, Borough, London, GBR, SE1 1EP

Website

https://www.trgplc.com

Restaurant Group (The) PLC operates more than 400 restaurants and pubs under a variety of brand names and concepts, including Frankie and Benny's (American and Italian food), Chiquito (Mexican food), Coast to Coast (American food), Brunning & Price (traditional British pub), and Garfunkel's (British cafe). The group trades in four segments Wagamama, Pubs, Leisure, and Concessions. Nearly all of the company's restaurants are in the United Kingdom. The Group also operates Pub restaurants and a Concessions business which trades principally at UK airports.