CFROI (Cash Flow Return On Investment) | Formula | Calculation

00:09:44
https://www.youtube.com/watch?v=NMRM4Wx5UYo

Summary

TLDRLa vidéo présente le CFROI (Cash Flow Return on Investment) comme un outil essentiel pour évaluer la performance d'une entreprise. À travers l'exemple de Starbucks, elle explique comment calculer le CFROI en utilisant le flux de trésorerie d'exploitation et le capital employé. Le CFROI est comparé au WACC (coût moyen pondéré du capital) pour déterminer si l'entreprise crée ou détruit de la valeur pour les actionnaires. La vidéo souligne l'importance de se concentrer sur les flux de trésorerie réels plutôt que sur les bénéfices comptables, car cela reflète mieux la santé financière d'une entreprise.

Takeaways

  • 📈 Le CFROI mesure le retour sur investissement basé sur les flux de trésorerie.
  • 💰 Le flux de trésorerie d'exploitation est crucial pour le calcul du CFROI.
  • 📊 Comparer le CFROI au WACC aide à évaluer la création de valeur.
  • 🏢 Le capital employé peut être calculé de deux manières.
  • 🔍 Les investisseurs doivent se concentrer sur les flux de trésorerie réels.
  • 📉 Un CFROI inférieur au WACC indique une destruction de valeur.
  • 💡 Le CFROI est un meilleur indicateur que les bénéfices comptables.
  • 📅 Utiliser le CFROI avant d'investir dans une entreprise est recommandé.

Timeline

  • 00:00:00 - 00:09:44

    Dans cette vidéo, l'auteur présente le concept de CFROI (Cash Flow Return on Investment) en utilisant Starbucks comme exemple. Il explique que le CFROI est un modèle d'évaluation qui compare le flux de trésorerie d'exploitation (OCF) au capital employé pour déterminer la rentabilité d'un investissement. L'auteur détaille la formule du CFROI et les méthodes pour calculer le capital employé, en soulignant l'importance de comparer le CFROI au taux de rendement minimal (WACC) pour évaluer la valeur pour les actionnaires. Un exemple pratique est donné pour illustrer le calcul du CFROI et du WACC, montrant comment ces mesures aident les investisseurs à prendre des décisions éclairées. Enfin, l'auteur conclut en soulignant que le CFROI est un indicateur clé de la performance d'une entreprise, plus fiable que d'autres ratios comptables.

Mind Map

Video Q&A

  • Qu'est-ce que le CFROI ?

    Le CFROI est un modèle d'évaluation qui mesure le retour sur investissement en fonction des flux de trésorerie d'exploitation par rapport au capital employé.

  • Comment calcule-t-on le CFROI ?

    Le CFROI se calcule en divisant le flux de trésorerie d'exploitation par le capital employé.

  • Pourquoi le CFROI est-il important ?

    Il permet d'évaluer la performance d'une entreprise en tenant compte des flux de trésorerie réels, ce qui est crucial pour les investisseurs.

  • Qu'est-ce que le WACC ?

    Le WACC est le coût moyen pondéré du capital, utilisé comme taux de référence pour comparer avec le CFROI.

  • Comment interpréter le CFROI ?

    Un CFROI supérieur au WACC indique une création de valeur pour les actionnaires, tandis qu'un CFROI inférieur suggère une destruction de valeur.

  • Quels sont les composants du flux de trésorerie d'exploitation ?

    Le flux de trésorerie d'exploitation est calculé à partir du revenu net, des dépenses non monétaires et des variations du fonds de roulement.

  • Comment le capital employé est-il calculé ?

    Le capital employé peut être calculé comme la somme des actifs fixes et du fonds de roulement ou comme les actifs totaux moins les passifs courants.

  • Pourquoi les investisseurs devraient-ils calculer le CFROI ?

    Pour obtenir une image précise de la performance d'une entreprise avant d'investir.

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  • 00:00:10
    hello everyone hi welcome to the channel of WallStreetmojo
  • 00:00:13
    watch the video till the end and if you're new to this channel then you can
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    subscribe us by clicking the bell icon today we have a topic with asset cash
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    flow returns on investments it's as simple as that I know how much cash flow
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    as a part of the return that goes with your investment that you have piston as
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    a part of your money this is the example of Starbucks corp capital employed and
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    the cash from operations so the capital employed was 18.47 billion
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    cash flow from the operation goes around 11.94B there was
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    a significant rise in both the scenario and the jump has been taken but there's
  • 00:00:47
    a huge jump that has been seen from 2018 itself so what exactly this all ratio is
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    all about we are trying to understand first what is the CFROI okay the CFROI
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    or cash flow or it is also known as your IRR of the company as it is compared
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    with the hurdle rate it is compared with the hurdle rate to the understand
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    whether the profit or the investment is doing well or not like it was designed
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    by hold value associates you know the measure all all allows the investor to
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    go into the internal structure of the company to find out how cash is created
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    in the organization it helps you to understand know how company finances its
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    operations and how financial providers are being paid more ever you know the
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    cash flow returns on investments also takes inflation into account so CFROI
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    is a valuation model it's a valuation model and at the same
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    time it does not take into account the performance of the earnings of the
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    company right so we'll try and understand the formula for this
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    particular concept the CFROI is equal to the OCF divided by the capital
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    employed so to be able to calculate the CFROI we
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    need to understand both the OCF and CE right so let's understand them one by
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    one first is OCF that is operating cash flow in simple terms the operating cash
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    flow is the amount of the cash that comes in after paying operating expenses
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    for the company so well we will first look at the net income and do following
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    adjustments according to the indirect method of cash flow OCF is equal to
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    your net income plus your non-cash expenses plus changes in walking cap
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    again now capital employed C let's look at the capital employed or part rate it
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    is okay I will again say it it is net income OCF operating cash flow is your
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    net income plus non-cash expenditure plus changes in working capital and CFROI
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    formula is operating cash flow divided by the capital employed now we'll discuss
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    see the CEO of the company used to method two usual means of measures to
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    calculate the capital employed there are the two ways to find out the capital
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    employed no matter which we use we need to remain consistent in to approach the
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    capital employed is equal to your fixed assets plus your working capital right
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    and second your capital employed is equal to your total assets less your
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    current liabilities right the second method is easier and and in the example
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    section we'll use the second method to ascertain the capital employed back on
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    the Starbucks example the chart that we saw over here you know the operating
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    cash flow standing at 11.94B and the capital employed
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    standing at 18.47B so the CFROI will be is equal to
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    the CFROI is going to be is equal to 11.94 divided by
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    18.47 that's going to be 64.67%
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    65 okay so we have got the percentage but
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    how to interpret so that is our next topic of disparate discussion that is
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    the interpretation part interpret the CFROI cannot be interpreted
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    without comparing it to the hurdle rate so usually the hurdle rate is the
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    weighted average weighted
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    average cost of capital the WACC okay now once the CFROI is calculated it is
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    compared with the CFROI is compared with the WACC and then the net CFROI
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    is calculated so here's how we can calculate CFROI the cash flow from return
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    on investment less the weighted average cost of capital right so if the net CF
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    ROI if the net CFROI is let's say positive that as the CFROI is greater
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    than the WACC then it increases the value of the shareholders and if the net
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    CFROI is let's say negative that is the CFROI is less than the WACC
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    then it decreases the value of the shareholders now let's understand the
  • 00:05:14
    example see let's say Ms.Shweta has been thinking of investing in Q company but
  • 00:05:20
    before investing she wants to know whether Q company would be able to
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    appreciate our value as a as a shareholder so she decided to find out
  • 00:05:27
    the cash flow return on investment and the net CFROI right so she has
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    some of the following details something like this details are something like
  • 00:05:38
    this net income depreciation deferred tax account receivables inventories and
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    so on and so forth it goes around with a couple of details we have in we have the
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    above information available and first will try to calculate over here the OCF
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    that is the operating cash flow so we will try and incorporate this first so
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    let's try and incorporate the numbers we'll start with OCF here we'll start
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    with net income so net income over here is 6,00,000 plus any non-cash
  • 00:06:09
    expenditures
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    just add over here okay non-cash expenditure will be depreciation
  • 00:06:21
    amortization deferred tax both of them above so we'll take down all those
  • 00:06:26
    numbers here okay and now we will have to add any increase in the or the
  • 00:06:33
    changes in the working capital okay which will be increasing account racer
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    will decrease in inventory accounts payable and all of this about let's take
  • 00:06:44
    down the numbers here increase in account receivable has to be deducted
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    this will be decrease in inventory has to be added increase in account payable
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    decrease in ability should be deducted and this will be added okay now any
  • 00:06:57
    increase in the accrued the profit on the sale of property will be deducted so
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    we'll take down that number here 12000 so now we'll get from this
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    above cash flow from operating activities okay so that will be just
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    take down all the numbers just sum it up everything is equal to sum all these
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    numbers out here so it's 646700 so we have the component
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    of the CFR we need to calculate the another one that is capital M so for
  • 00:07:26
    capital employed we need total assets that is e right then current liability that's
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    B and then there will be capital employed that is A - right let's get the
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    total assets here 32 lack current liabilities 4 lakh and capital
  • 00:07:44
    employed will be 32 lakh - 4 lakh that is 28 lakh so here's the cash flow
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    return on investment of Q company that is the cash flow return on the
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    investment formula CFROI is equal to just get the numbers out here see if ROI
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    6.4700 divided by 28 lakh and that gives us 23.1%
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    so - no hurdle rate total rate and to compare the cash flow rate or
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    investment method we need to first compute the WACC and find out the same
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    if you calculate over here the WACC it's long process but it comes down to
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    4.06 then the net cash flow rate on an investment is twenty
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    23.10 as for CFROI and WACC so the net cash flow or return
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    on investment is going to be 23-4.6 this is percentage so it's gonna
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    be 0.06 that is 19.04 so from the
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    above share is now confident that Q company will be able to appreciate the
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    investment should be making as a as a result she would go ahead and invest
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    into the company so in the final analysis CFROI is one of the best
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    measure if you want to know an accurate picture of how company is doing other
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    accounting ratio work but there are based on the flawed idea that more
  • 00:09:02
    profit means you know better resources management and better returns but in
  • 00:09:06
    actual sense how much cash is coming and how much is going out is what is
  • 00:09:13
    important and will always decide how a company is doing in terms of the
  • 00:09:16
    performance in the market and every investor should calculate the CF ROI and
  • 00:09:20
    the net cash flow or returns on investment before investing into any
  • 00:09:24
    company so that's it for this particular topic I think if you have learned and
  • 00:09:29
    you know liked the video if you think that you know if you have enjoyed and
  • 00:09:33
    learned watching this video please like comment on this video and subscribe to
  • 00:09:37
    our channel for all the latest updates thank you everyone
  • 00:09:40
    Cheers
Tags
  • CFROI
  • flux de trésorerie
  • investissement
  • WACC
  • performance d'entreprise
  • évaluation financière
  • capital employé
  • actionnaires
  • Starbucks
  • retour sur investissement