Daniel Thwaites (AQSE:THW) ROIC % : 4.20% (As of Sep. 2023)

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What is Daniel Thwaites ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Daniel Thwaites's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was 4.20%.

As of today (2024-05-12), Daniel Thwaites's WACC % is 5.32%. Daniel Thwaites's ROIC % is 2.37% (calculated using TTM income statement data). Daniel Thwaites earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Daniel Thwaites ROIC % Historical Data

The historical data trend for Daniel Thwaites'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.

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Daniel Thwaites ROIC % Chart

Daniel Thwaites Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROIC %

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3.19

3.40

-5.80

3.17

2.74

Daniel Thwaites Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
ROIC %	Get a 7-Day Free Trial															5.24	0.93	5.20	0.37	4.20

Competitive Comparison of Daniel Thwaites's ROIC %

For the Lodging subindustry, Daniel Thwaites'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.

Daniel Thwaites's ROIC % Distribution in the Travel & Leisure Industry

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

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

Daniel Thwaites ROIC % Calculation

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

	ROIC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	10.8 * ( 1 - 14.57% )	/	( (331.1	+	341.9)	/ 2 )
=	9.22644	/	336.5
=	2.74 %

where

	Invested Capital		(A: Mar. 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	))
=	315.2	-	15.1	-	( 5.4	-	max(0, 42.6	-	11.6	+	5.4	))
=	331.1

	Invested Capital		(A: Mar. 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	))
=	343.8	-	14.8	-	( 2	-	max(0, 21.7	-	8.8	+	2	))
=	341.9

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

	ROIC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	17.6 * ( 1 - 22.35% )	/	( (341.9	+	309.1)	/ 2 )
=	13.6664	/	325.5
=	4.20 %

where

	Invested Capital		(Q: Mar. 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	))
=	343.8	-	14.8	-	( 2	-	max(0, 21.7	-	8.8	+	2	))
=	341.9

	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	))
=	319.7	-	20.6	-	( 2.4	-	max(0, 20.6	-	10.6	+	2.4	))
=	309.1

Note: The Operating Income data used here is two times the semi-annual (Sep. 2023) data.

Daniel Thwaites (AQSE:THW) 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, Daniel Thwaites's WACC % is 5.32%. Daniel Thwaites's ROIC % is 2.37% (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.

Daniel Thwaites ROIC % Related Terms

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Daniel Thwaites (AQSE:THW) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Daniel Thwaites PLC (AQSE:THW) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Myerscough Road, Mellor Brook, Blackburn, Lancashire, GBR, BB2 7LB

Website

https://www.thwaites.co.uk

Daniel Thwaites PLC operates pubs, inns, and hotels. The company's operations include hotels, conference venues, inns, spas, lodges, and pubs. It has two operating segments namely Pubs and Inns and Hotels of which it generates maximum revenue from the Pubs and Inns segment. Revenue principally consists of food, drink and accommodation sales.