Snap One Holdings (Snap One Holdings) ROC % : 1.24% (As of Mar. 2024)

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What is Snap One Holdings 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 %. Snap One Holdings's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 1.24%.

As of today (2024-05-20), Snap One Holdings's WACC % is 10.07%. Snap One Holdings's ROC % is 2.29% (calculated using TTM income statement data). Snap One Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Snap One Holdings ROC % Historical Data

The historical data trend for Snap One Holdings'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.

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Snap One Holdings ROC % Chart

Snap One Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

-0.71

0.90

0.08

1.60

1.14

Snap One Holdings Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial													-0.61	0.05	2.75	1.15	1.24

Snap One Holdings ROC % Calculation

Snap One Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	26.35 * ( 1 - 36.04% )	/	( (1517.606	+	1428.176)	/ 2 )
=	16.85346	/	1472.891
=	1.14 %

where

	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	))
=	1652.521	-	113.798	-	( 21.117	-	max(0, 167.876	-	412.722	+	21.117	))
=	1517.606

	Invested Capital		(A: 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	))
=	1602.928	-	113.729	-	( 61.023	-	max(0, 166.389	-	399.44	+	61.023	))
=	1428.176

Snap One Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	9.112 * ( 1 - -92.58% )	/	( (1428.176	+	1411.583)	/ 2 )
=	17.5478896	/	1419.8795
=	1.24 %

where

	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	))
=	1602.928	-	113.729	-	( 61.023	-	max(0, 166.389	-	399.44	+	61.023	))
=	1428.176

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	1549.815	-	96.981	-	( 41.251	-	max(0, 146.053	-	361.547	+	41.251	))
=	1411.583

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Snap One Holdings (NAS:SNPO) 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, Snap One Holdings's WACC % is 10.07%. Snap One Holdings's ROC % is 2.29% (calculated using TTM income statement data). Snap One Holdings 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.

Snap One Holdings ROC % Related Terms

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Snap One Holdings (Snap One Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Snap One Holdings Corp (NAS:SNPO) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

8W1:Germany

Address

1800 Continental Boulevard, Suite 200, Charlotte, NC, USA, 28273

Website

https://www.snapone.com

Snap One Holdings Corp provides products, services, and software to its network of professional integrators that enable them to deliver smart living experiences for their residential and business end users. The Company's hardware and software portfolio includes proprietary and third-party offerings across connected, infrastructure, and entertainment categories. Additionally, the Company provides value-added services and workflow solutions to support integrators throughout the project lifecycle, enhancing their operations.

Executives

John H Heyman	director, officer: Chief Executive Officer	3925 BROOKSIDE PARKWAY, ALPHARETTA GA 30022
Ryan Francis Marsh	other: Executive VP of Sales	C/O SNAP ONE HOLDINGS CORP.,, 1800 CONTINENTAL BLVD., SUITE 200, CHARLOTTE NC 28273
Kathleen Ann Creech	officer: Chief People Officer	C/O SNAP ONE HOLDINGS CORP., 1800, CONTINENTAL BLVD., SUITE 200, CHARLOTTE NC 28273
Jefferson Dungan	officer: Chief Operations Officer	C/O CONTROL4 CORPORATION, 11734 S. ELECTION ROAD, SALT LAKE CITY UT 84020
Thomas Hendrickson	director	16234 SANDSTONE DRIVE, MORRISON CO 80465
Michael Carlet	officer: Chief Financial Officer	C/O SNAP ONE HOLDINGS CORP., 1800 CONTINENTAL BLVD., SUITE 200, CHARLOTTE NC 28273
Galen Paul Hess	officer: Chief Product Officer	C/O SNAP ONE HOLDINGS CORP., 1800 CONTINENTAL BLVD., SUITE 200, CHARLOTTE NC 28273
Jeffrey Hindman	officer: Chief Revenue Officer	C/O SNAP ONE HOLDINGS CORP., 1800 CONTINENTAL BLVD., SUITE 200, CHARLOTTE NC 28273
Adalio T Sanchez	director	6060 COVENTRY DRIVE, ELKHORN NE 68022
Joshua D. Ellis	officer: Chief Legal Officer	CONTROL4 CORP., 11734 S. ELECTION ROAD, SALT LAKE CITY UT 84020
H&f Associates Viii, L.p.	10 percent owner	ONE MARITINE PLAZA, 12TH FLOOR, SAN FRANCISCO CA 94111
H&f Corporate Investors Viii, Ltd.	10 percent owner	415 MISSION STREET, SUITE 5700, SAN FRANCISCO CA 94105
Hellman & Friedman Investors Viii, L.p.	10 percent owner	415 MISSION STREET, SUITE 5700, SAN FRANCISCO CA 94105
H&f Executives Viii, L.p.	10 percent owner	ONE MARITIME PLAZA, 12TH FLOOR, SAN FRANCISCO CA 94111
Hellman & Friedman Capital Partners Viii, L.p.	10 percent owner	ONE MARITINE PLAZA, 12TH FLOOR, SAN FRANCISCO CA 94111