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Bowlero (Bowlero) ROIC %

: 6.82% (As of Dec. 2023)
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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Bowlero's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 6.82%.

As of today (2024-04-18), Bowlero's WACC % is 5.10%. Bowlero's ROIC % is -18.67% (calculated using TTM income statement data). Bowlero earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Bowlero ROIC % Historical Data

The historical data trend for Bowlero'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.

* Premium members only.

Bowlero Annual Data
Trend Jun20 Jun21 Jun22 Jun23
ROIC %
-0.49 -3.56 6.64 -337.63

Bowlero Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.24 18.78 8.62 1.61 6.82

Competitive Comparison

For the Leisure subindustry, Bowlero'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.


Bowlero ROIC % Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Bowlero's ROIC % distribution charts can be found below:

* The bar in red indicates where Bowlero's ROIC % falls into.



Bowlero ROIC % Calculation

Bowlero's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

ROIC % (A: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2022 ) + Invested Capital (A: Jun. 2023 ))/ count )
=200.161 * ( 1 - 3837.95% )/( (1739.33 + 2692.713)/ 2 )
=-7481.9180995/2216.0215
=-337.63 %

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))
=1854.425 - 64.961 - ( 132.236 - max(0, 119.16 - 169.294+132.236))
=1739.33

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))
=2841.274 - 86.613 - ( 195.633 - max(0, 168.711 - 230.659+195.633))
=2692.713

Bowlero's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

ROIC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=198.108 * ( 1 - -4.29% )/( (3003.568 + 3058.638)/ 2 )
=206.6068332/3031.103
=6.82 %

where

Invested Capital(Q: Sep. 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))
=2987.396 - 98.611 - ( 40.088 - max(0, 193.603 - 78.82+40.088))
=3003.568

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))
=3192.162 - 91.288 - ( 189.955 - max(0, 195.133 - 237.369+189.955))
=3058.638

Note: The Operating Income data used here is four times the quarterly (Dec. 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.


Bowlero  (NYSE:BOWL) 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, Bowlero's WACC % is 5.10%. Bowlero's ROIC % is -18.67% (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.


Bowlero ROIC % Related Terms

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Bowlero (Bowlero) Business Description

Traded in Other Exchanges
N/A
Address
7313 Bell Creek Road, Mechanicsville, VA, USA, 23111
Bowlero Corp is a operator of bowling entertainment centers. It operate traditional bowling centers and more upscale entertainment concepts with lounge seating, arcades, enhanced food and beverage offerings, and more robust customer service for individuals and group events, as well as hosting and overseeing professional and non-professional bowling tournaments and related broadcasting.
Executives
John Alan Young director C/O BOWLERO CORP., 7313 BELL CREEK ROAD, MECHANICSVILLE VA 23111
Robert M. Lavan officer: Chief Financial Officer 5201 INTERCHANGE WAY, LOUISVILLE KY 40229
A-b Parent Llc director, 10 percent owner C/O ATAIROS GROUP INC, 40 MORRIS AVE, BRYN MAWR PA 19010
Jeffrey C Kostelni officer: Chief Accounting Officer C/O BOWLERO CORP., 7313 BELL CREEK ROAD, MECHANICSVILLE VA 23111
Brett I. Parker officer: Chief Financial Officer C/O BOWLERO CORP., 7313 BELL CREEK ROAD, MECHANICSVILLE VA 23111
Thomas F. Shannon director, officer: Chief Executive Officer C/O BOWLERO CORP., 222 WEST 44TH STREET, NEW YORK NY 10036
Alberto Perlman director C/O BOWLERO CORP., 7313 BELL CREEK ROAD, MECHANICSVILLE VA 23111
George A. Barrios director C/O 1241 EAST MAIN STREET, STAMFORD CT 06902
Michelle D Wilson director C/O WORLD WRESTLING ENTERTAINMENT, INC., 1241 EAST MAIN STREET, STAMFORD CT 06902
Apollo Spac Fund I, L.p. 10 percent owner 27 HOSPITAL ROAD, GEORGE TOW E9 KY1-9008
Cobalt Group, Llc director C/O BOWLERO CORPORATION, 7313 BELL CREEK ROAD, MECHANICSVILLE VA 23111
Cobalt Recreation Llc director C/O BOWLERO CORPORATION, 7313 BELL CREEK ROAD, MECHANICSVILLE VA 23111
Nicole M. Weinberger officer: Chief Customer Off. & CEO, PBA C/O BOWLERO CORP., 222 W. 44TH STREET, NEW YORK NY 10036
Rachael A. Wagner director, 10 percent owner C/O BOWLERO CORP., 222 WEST 44TH STREET, NEW YORK NY 10036
Apollo Management Holdings Gp, Llc 10 percent owner 9 W. 57TH STREET, 43RD FLOOR, NEW YORK NY 10019

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