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DecisionPoint Systems (DecisionPoint Systems) ROIC % : 19.06% (As of Dec. 2023)


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What is DecisionPoint Systems 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 %. DecisionPoint Systems's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 19.06%.

As of today (2024-05-15), DecisionPoint Systems's WACC % is 18.67%. DecisionPoint Systems's ROIC % is 6.83% (calculated using TTM income statement data). DecisionPoint Systems earns returns that do not match up to its cost of capital. It will destroy value as it grows.


DecisionPoint Systems ROIC % Historical Data

The historical data trend for DecisionPoint 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.

* Premium members only.

DecisionPoint Systems ROIC % Chart

DecisionPoint Systems Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec17 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.25 12.81 1.60 12.03 7.42

DecisionPoint Systems Quarterly Data
Jun15 Sep15 Dec17 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.66 10.32 8.32 8.11 19.06

Competitive Comparison of DecisionPoint Systems's ROIC %

For the Software - Application subindustry, DecisionPoint 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.


DecisionPoint Systems's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, DecisionPoint Systems's ROIC % distribution charts can be found below:

* The bar in red indicates where DecisionPoint Systems's ROIC % falls into.



DecisionPoint Systems ROIC % Calculation

DecisionPoint Systems's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROIC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=4.775 * ( 1 - 31.28% )/( (31.204 + 57.231)/ 2 )
=3.28138/44.2175
=7.42 %

where

DecisionPoint Systems'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: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=2.892 * ( 1 - -277.46% )/( (57.309 + 57.231)/ 2 )
=10.9161432/57.27
=19.06 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 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.


DecisionPoint Systems  (AMEX:DPSI) 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, DecisionPoint Systems's WACC % is 18.67%. DecisionPoint Systems's ROIC % is 6.83% (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.


DecisionPoint Systems ROIC % Related Terms

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DecisionPoint Systems (DecisionPoint Systems) Business Description

Traded in Other Exchanges
Address
1615 South Congress Avenue, Suite 103, Delray Beach, FL, USA, 33445
DecisionPoint Systems Inc is an enterprise mobility systems integrator. It sells and installs mobile computing and wireless systems used both within a company's facilities with wireless networks and in the field using carrier-based wireless networks. The system includes mobile computers, mobile application software, and related data capture equipment including barcode scanners and radio frequency identification readers. It also offers professional services, proprietary and third-party software, and software customization as an integral part of its customized solutions for its customers. Its software's utilized in industries including retail, transportation logistics, management consulting, warehousing, and field service management.
Executives
John C Guttilla director C/O ORCHIDS PAPER PRODUCTS COMPANY, 4826 HUNT STREET, PRYOR OK 74361
Steven F Smith director, officer: Chief Executive Officer 8697 RESEARCH DRIVE, IRVINE CA 92618
Michael N Taglich director TAGLICH BROTHERS INC, 1370 AVENUE OF THE AMERICAS --31ST FLOOR, NEW YORK NY 6317254791
William Cooke director 800 STANDARD PARKWAY, AUBURN HILLS MI 48326
Richard Bravman director
Paul Seid director 22 WOODHAVEN DRIVE, NEW CITY NY 10956
James F Desocio director 380 ST PETER STREET, ST PAUL MN 55102
Jaworski Stanley P. Jr director 39 RIVER HEIGHTS DRIVE, SMITHTOWN NY 11787
Greg Alan Henry officer: SR. VP Operations and Software 6 BELCANTO, MISSION VIEJO CA 92692
Robert C Schroeder director 37 MAIN STREET, COLD SPRING HARBOR, NEW YORK NY 11724
Toms Nicholas R H director, officer: CEO, President 262 WEST 12TH STREET, NEW YORK NY 10014
Michael Patrick Roe officer: Chief Financial Officer 8697 RESEARCH, IRVINE CA 92618
Paul Ross officer: Interim Chief Financial Office 740 CALLE PLANO, CAMARILLO CA 93012
Donald Dalicandro director C/O APEX,A DECISIONPOINT SYSTEMS, INC. C, 3170 HARVESTER ROAD, BURLINGTON A6 L7N 3W8
Ralph Hubregsen officer: Chief Operating Officer 19655 DESCARTES, FOOTHILL RANCH CA 92610