Just Life Group (NZSE:JLG) ROIC % : 5.10% (As of Dec. 2023)

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What is Just Life Group 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 %. Just Life Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 5.10%.

As of today (2024-05-16), Just Life Group's WACC % is 6.14%. Just Life Group's ROIC % is 5.57% (calculated using TTM income statement data). Just Life Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Just Life Group ROIC % Historical Data

The historical data trend for Just Life 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.

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Just Life Group ROIC % Chart

Just Life Group Annual Data

Trend

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

ROIC %

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9.41

10.18

9.60

6.45

6.03

Just Life Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROIC %	Get a 7-Day Free Trial															6.61	5.53	6.06	6.06	5.10

Competitive Comparison of Just Life Group's ROIC %

For the Beverages - Non-Alcoholic subindustry, Just Life 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.

Just Life Group's ROIC % Distribution in the Beverages - Non-Alcoholic Industry

For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Just Life Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Just Life Group's ROIC % falls into.

Just Life Group ROIC % Calculation

Just Life Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROIC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	4.516 * ( 1 - 29.14% )	/	( (54.759	+	51.453)	/ 2 )
=	3.2000376	/	53.106
=	6.03 %

where

	Invested Capital		(A: Jun. 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	))
=	59.029	-	4.26	-	( 0.01	-	max(0, 7.78	-	17.148	+	0.01	))
=	54.759

	Invested Capital		(A: Jun. 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	))
=	54.954	-	3.497	-	( 0.004	-	max(0, 6.216	-	8.528	+	0.004	))
=	51.453

Just Life Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	3.604 * ( 1 - 27.93% )	/	( (51.453	+	50.435)	/ 2 )
=	2.5974028	/	50.944
=	5.10 %

where

	Invested Capital		(Q: Jun. 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	))
=	54.954	-	3.497	-	( 0.004	-	max(0, 6.216	-	8.528	+	0.004	))
=	51.453

	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	))
=	54.264	-	3.769	-	( 0.06	-	max(0, 6.074	-	8.556	+	0.06	))
=	50.435

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

Just Life Group (NZSE:JLG) 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, Just Life Group's WACC % is 6.14%. Just Life Group's ROIC % is 5.57% (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.

Just Life Group ROIC % Related Terms

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Just Life Group (NZSE:JLG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » Just Life Group Ltd (NZSE:JLG) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

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Address

130 Hugo Johnston Drive, Penrose, Auckland, NTL, NZL, 1061

Website

https://www.justlifegroup.co.nz

Just Life Group Ltd is a New Zealand based company that is focused on supplying products and services that enhance the lives of people. It has two operating segments: Healthy Living and Healthy Homes. Through these segments, it is engaged in the provision of filtered water solutions to customers including the sale of water and water-related products and enabling healthier homes with its Solatube daylighting products, the Cylinder Guy, Designer Tanks and Unovent home ventilation systems.

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