Franchise Group (FRA:3HC) ROCE % : 2.90% (As of Jun. 2023)

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What is Franchise Group 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. Franchise Group's annualized ROCE % for the quarter that ended in Jun. 2023 was 2.90%.

Franchise Group ROCE % Historical Data

The historical data trend for Franchise Group'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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Franchise Group ROCE % Chart

Franchise Group Annual Data

Trend

Apr13

Apr14

Apr15

Apr16

Apr17

Apr18

Apr19

Dec20

Dec21

Dec22

ROCE %

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5.21

6.65

14.58

9.90

Franchise Group Quarterly Data
	Jul18	Oct18	Jan19	Apr19	Jul19	Oct19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
ROCE %	Get a 7-Day Free Trial															21.16	-4.20	5.61	-4.31	2.90

Franchise Group ROCE % Calculation

Franchise Group'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 )
	=	247.86	/	( ( (3463.156 - 991.781)	+	(3427.109 - 891.052) )	/ 2 )
	=	247.86	/	( (2471.375	+	2536.057)	/ 2 )
	=	247.86	/	2503.716
	=	9.90 %

Franchise Group'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: Mar. 2023 )		(Q: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2023 )		(Q: Mar. 2023 )		(Q: Jun. 2023 )
	=	69.124	/	( ( (3369.183 - 990.532)	+	(3296.828 - 900.807) )	/ 2 )
	=	69.124	/	( ( 2378.651	+	2396.021 )	/ 2 )
	=	69.124	/	2387.336
	=	2.90 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2023) EBIT data.

Franchise Group (FRA:3HC) 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.

Franchise Group ROCE % Related Terms

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Franchise Group (FRA:3HC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Franchise Group Inc (FRA:3HC) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

N/A

Address

109 Innovation Court, Suite J, Delaware, OH, USA, 43015

Website

https://www.franchisegrp.com

Franchise Group Inc is a personal services company that provides retail federal and state income tax preparation services and related tax settlement products. The vast majority of these offices operate in the United States under the Liberty Tax Service and SiempreTax+ brand names. Liberty Tax also provides online do-it-yourself tax programs within the U.S. The sale of financial products and tax preparation service fees also contribute to sizable percentages of the company's total income. Liberty Tax also operates a smaller portfolio of wholly-owned company offices. The company's reportable segments are Vitamin Shoppe, Pet Supplies Plus, Badcock, American Freight, Buddy's and Sylvan.

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