ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Ten Lifestyle Group's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2024 was 0.03%.
As of today (2024-05-24), Ten Lifestyle Group's WACC % is 9.78%. Ten Lifestyle Group's ROIC % is 37.00% (calculated using TTM income statement data).
Ten Lifestyle Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Ten Lifestyle Group ROIC % Historical Data
The historical data trend for Ten Lifestyle Group'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.
Competitive Comparison of Ten Lifestyle Group's ROIC %
For the Travel Services subindustry, Ten Lifestyle Group'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.
Ten Lifestyle Group's ROIC % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Ten Lifestyle Group's ROIC % distribution charts can be found below:
* The bar in red indicates where Ten Lifestyle Group's ROIC % falls into.
Ten Lifestyle Group ROIC % Calculation
Ten Lifestyle Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Aug. 2023 is calculated as:
Note:
The Operating Income data used here is two times the semi-annual (Feb. 2024) 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.
Ten Lifestyle Group (LSE:TENG) 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, Ten Lifestyle Group's WACC % is 9.78%. Ten Lifestyle Group's ROIC % is 37.00% (calculated using TTM income statement data).
Ten Lifestyle Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.
Ten Lifestyle 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 %, 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.
Ten Lifestyle Group ROIC % Related Terms
Thank you for viewing the detailed overview of Ten Lifestyle Group's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ten Lifestyle Group (LSE:TENG) Business Description
Ten Lifestyle Group PLC is a technology-enabled lifestyle and travel platform company. It assists its customers to discover, organize, and book travel, dining, and live entertainment to save time and money. The company's geographical segments include Europe, the Middle East and Africa (EMEA), North and South America (The Americas) and Asia-Pacific (APAC). It offers a range of product platforms such as Ten Digital Platforms Ten MAID (management and information delivery) and others. The company derives revenue mainly from service fees that are paid by its corporate clients, under contracts.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LSE:TENG has been successfully added to your 