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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. DST Systems's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2017 was 9.53%.
As of today (2024-04-26), DST Systems's WACC % is 0.00%. DST Systems's ROIC % is 0.00% (calculated using TTM income statement data). DST Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for DST Systems'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.
DST Systems Annual Data | |||||||||||||||||||||
Trend | Dec08 | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | |||||||||||
ROIC % | Get a 7-Day Free Trial | 5.83 | 6.66 | 5.97 | 6.17 | 9.26 |
DST Systems Quarterly Data | ||||||||||||||||||||
Mar13 | Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | |
ROIC % | Get a 7-Day Free Trial | 8.00 | 7.94 | 9.67 | 6.56 | 9.53 |
For the Software - Infrastructure subindustry, DST Systems'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.
For the Software industry and Technology sector, DST Systems's ROIC % distribution charts can be found below:
* The bar in red indicates where DST Systems's ROIC % falls into.
DST Systems's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2017 is calculated as:
ROIC % (A: Dec. 2017 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (A: Dec. 2016 ) | + | Invested Capital (A: Dec. 2017 )) | / count ) |
= | 285.2 * ( 1 - 15.85% ) | / | ( (2558.4 | + | 2627.7) | / 2 ) |
= | 239.9958 | / | 2593.05 | |||
= | 9.26 % |
where
Invested Capital | (A: Dec. 2016 ) | |||||||||||
= | 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 | )) |
= | 2771.8 | - | 186.6 | - | ( 195.5 | - | max(0, 1091.4 | - | 1118.2 | + | 195.5 | )) |
= | 2558.4 |
Invested Capital | (A: Dec. 2017 ) | |||||||||||
= | 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 | )) |
= | 2938.2 | - | 244.1 | - | ( 80.5 | - | max(0, 971.3 | - | 1037.7 | + | 80.5 | )) |
= | 2627.7 |
DST Systems's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2017 is calculated as:
ROIC % (Q: Dec. 2017 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Sep. 2017 ) | + | Invested Capital (Q: Dec. 2017 )) | / count ) |
= | 309.2 * ( 1 - 18.15% ) | / | ( (2682.5 | + | 2627.7) | / 2 ) |
= | 253.0802 | / | 2655.1 | |||
= | 9.53 % |
where
Invested Capital | (Q: Sep. 2017 ) | |||||||||||
= | 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 | )) |
= | 3002.2 | - | 227.7 | - | ( 140.7 | - | max(0, 1071.6 | - | 1163.6 | + | 140.7 | )) |
= | 2682.5 |
Invested Capital | (Q: Dec. 2017 ) | |||||||||||
= | 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 | )) |
= | 2938.2 | - | 244.1 | - | ( 80.5 | - | max(0, 971.3 | - | 1037.7 | + | 80.5 | )) |
= | 2627.7 |
Note: The Operating Income data used here is four times the quarterly (Dec. 2017) 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.
DST Systems (NYSE:DST) 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, DST Systems's WACC % is 0.00%. DST Systems's ROIC % is 0.00% (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.
Thank you for viewing the detailed overview of DST Systems's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Samuel G Liss | director | VERISK ANALYTICS, INC., 545 WASHINGTON BOULEVARD, JERSEY CITY NJ 07310 |
Gary D Forsee | director | C/O INGERSOLL-RAND COMPANY, 155 CHESTNUT RIDGE ROAD, MONTVALE NJ 07645 |
Joseph C Antonellis | director | STATE STREET CORPORATION, ONE LINCOLN STREET, BOSTON MA 02111 |
Charles E Haldeman | director | C/O JBG/OPERATING PARTNERS, L.P., 4445 WILLARD AVENUE, SUITE 400, CHEVY CHASE MD 20815 |
Edmund J Burke | officer: President of Subsidiary | 1290 BROADWAY, SUITE 1100, DENVER CO 80203 |
Lynn Dorsey Bleil | director | 333 WEST 11TH STREET, KANSAS CITY MO 64105 |
Stephen C Hooley | director, officer: Chairman, CEO & President | 2355 WAUKEGAN ROAD, BANNOCKBURN IL 60015 |
A Edward Allinson | director | STATE STREET BOSTON CORP 225 FRANKLIN STREET BOSTON MA 02110 |
John W Clark | director | 949 SOUTH COAST DRIVE, SUITE 650, COSTA MESA CA 92626 |
George L Argyros | director | ARNEL & AFFILIATES, 949 SOUTH COAST DR SUITE 600, COSTA MESA CA 92626 |
Lawrence M Higby | director | C/O APRIA HEALTHCARE GROUP INC, 26220 ENTERPRISE COURT, LAKE FOREST CA 92630 |
Thomas A Mcdonnell | director, officer: CEO & Director | C/O KANSAS CITY SOUTHERN, 427 W 12TH STREET, KANSAS CITY MO 64105 |
M Jeannine Strandjord | other: Retired Director as of 5/9/12 | |
William C Nelson | director | 6521 WE NONGA TERRACE, MISSION HILLS KY 66208 |
Thomas A Mccullough | director | C/O DST SYSTEMS, 333 WEST 11TH ST 5TH FL, KANSAS CITY MO 64105 |
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