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Pinstripes Holdings�Inc (Pinstripes Holdings�Inc) ROIC % : -3.97% (As of Oct. 2023)


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What is Pinstripes Holdings�Inc 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 %. Pinstripes Holdings�Inc's annualized return on invested capital (ROIC %) for the quarter that ended in Oct. 2023 was -3.97%.

As of today (2024-05-08), Pinstripes Holdings�Inc's WACC % is 6.19%. Pinstripes Holdings�Inc's ROIC % is -1.99% (calculated using TTM income statement data). Pinstripes Holdings�Inc earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Pinstripes Holdings�Inc ROIC % Historical Data

The historical data trend for Pinstripes Holdings�Inc'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.

* Premium members only.

Pinstripes Holdings�Inc ROIC % Chart

Pinstripes Holdings�Inc Annual Data
Trend Apr21 Apr22 Apr23
ROIC %
- -8.94 -5.04

Pinstripes Holdings�Inc Semi-Annual Data
Apr21 Apr22 Apr23 Oct23
ROIC % - - - -3.97

Competitive Comparison of Pinstripes Holdings�Inc's ROIC %

For the Restaurants subindustry, Pinstripes Holdings�Inc'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.

Pinstripes Holdings�Inc's ROIC % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Pinstripes Holdings�Inc's ROIC % distribution charts can be found below:

* The bar in red indicates where Pinstripes Holdings�Inc's ROIC % falls into.


Pinstripes Holdings�Inc ROIC % Calculation

Pinstripes Holdings�Inc's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Apr. 2023 is calculated as:

ROIC % (A: Apr. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Apr. 2022 ) + Invested Capital (A: Apr. 2023 ))/ count )
=-6.431 * ( 1 - -2.62% )/( (127.237 + 134.41)/ 2 )
=-6.5994922/130.8235
=-5.04 %

where

Invested Capital(A: Apr. 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))
=114.472 - 43.546 - ( 8.907 - max(0, 67.127 - 10.816+8.907))
=127.237

Invested Capital(A: Apr. 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))
=130.927 - 47.37 - ( 8.436 - max(0, 61.978 - 11.125+8.436))
=134.41

Pinstripes Holdings�Inc's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Oct. 2023 is calculated as:

ROIC % (Q: Oct. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Apr. 2023 ) + Invested Capital (Q: Oct. 2023 ))/ count )
=-5.548 * ( 1 - 0% )/( (134.41 + 144.815)/ 2 )
=-5.548/139.6125
=-3.97 %

where

Invested Capital(Q: Apr. 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))
=130.927 - 47.37 - ( 8.436 - max(0, 61.978 - 11.125+8.436))
=134.41

Invested Capital(Q: Oct. 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))
=141.303 - 46.919 - ( 7.991 - max(0, 61.035 - 10.604+7.991))
=144.815

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

Pinstripes Holdings�Inc  (NYSE:PNST) 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, Pinstripes Holdings�Inc's WACC % is 6.19%. Pinstripes Holdings�Inc's ROIC % is -1.99% (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.

Pinstripes Holdings�Inc ROIC % Related Terms

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Pinstripes Holdings�Inc (Pinstripes Holdings�Inc) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Pinstripes Holdings�Inc (NYSE:PNST) » Definitions » ROIC %
Comparable Companies
Traded in Other Exchanges
N/A
Address
1150 Willow Road, Northbrook, IL, USA, 60062
Website
https://www.pinstripes.com
Pinstripes Holdings Inc is an experiential dining and entertainment concept combining exceptional Italian-American cuisine with bowling, bocce, and private events. It owns and operates about 13 restaurants in the USA. The company designs and constructs large-format locations that are each 26,000 to 38,000 square feet of interior space, plus additional outdoor patio space that includes outdoor dining, bocce courts, fire-pits and decorative fountains.