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Driver Group (LSE:DRV) ROC % : -6.09% (As of Sep. 2023)


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What is Driver Group 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 %. Driver Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -6.09%.

As of today (2024-06-07), Driver Group's WACC % is 5.74%. Driver Group's ROC % is 0.70% (calculated using TTM income statement data). Driver Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Driver Group ROC % Historical Data

The historical data trend for Driver Group'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.

Driver Group ROC % Chart

Driver Group Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 14.59 8.27 6.38 -11.76 0.62

Driver Group Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
ROC % Get a 7-Day Free Trial 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 Premium Member Only Premium Member Only 6.75 -2.72 -22.80 4.01 -6.09

Driver Group ROC % Calculation

Driver Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2023 is calculated as:

ROC % (A: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Sep. 2022 ) + Invested Capital (A: Sep. 2023 ))/ count )
=0.373 * ( 1 - 71.53% )/( (19.522 + 14.5)/ 2 )
=0.1061931/17.011
=0.62 %

where

Driver Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

ROC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=-0.314 * ( 1 - -155.07% )/( (11.815 + 14.5)/ 2 )
=-0.8009198/13.1575
=-6.09 %

where

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


Driver Group  (LSE:DRV) 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, Driver Group's WACC % is 5.74%. Driver Group's ROC % is 0.70% (calculated using TTM income statement data). Driver Group 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.


Driver Group ROC % Related Terms

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Driver Group (LSE:DRV) Business Description

Traded in Other Exchanges
N/A
Address
125 Old Broad Street, Suite 706-708, Floor 7, London, GBR, EC2N 1AR
Driver Group PLC provides consultancy services to the engineering and construction industries. The business activity of the group is primarily operated through divisions such as Europe and the Americas; Asia Pacific; Middle East. Geographically, it derives a majority of its revenue from the United Kingdom and can be seen across the region of Oman, France, Qatar, Germany, Kuwait, China, the US, Canada, and others. It offers quantity surveying, quantum and planning experts, litigation support, contract administration, and commercial advice/management services; and capital investment consultancy services, including development, project, and contracting management services.

Driver Group (LSE:DRV) Headlines