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Conduent (Conduent) ROIC % : -8.37% (As of Dec. 2023)


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What is Conduent 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 %. Conduent's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -8.37%.

As of today (2024-04-26), Conduent's WACC % is 7.86%. Conduent's ROIC % is 3.87% (calculated using TTM income statement data). Conduent earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Conduent ROIC % Historical Data

The historical data trend for Conduent'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.

Conduent ROIC % Chart

Conduent Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.58 0.66 3.59 8.39 3.93

Conduent Quarterly Data
Mar19 Jun19 Sep19 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 4.39 3.45 5.46 1.51 -8.37

Competitive Comparison of Conduent's ROIC %

For the Information Technology Services subindustry, Conduent'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.


Conduent's ROIC % Distribution in the Software Industry

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

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



Conduent ROIC % Calculation

Conduent'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 )
=105 * ( 1 - 10.84% )/( (2489 + 2270)/ 2 )
=93.618/2379.5
=3.93 %

where

Conduent'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 )
=128 * ( 1 - 250% )/( (2317 + 2270)/ 2 )
=-192/2293.5
=-8.37 %

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.


Conduent  (NAS:CNDT) 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, Conduent's WACC % is 7.86%. Conduent's ROIC % is 3.87% (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.


Conduent ROIC % Related Terms

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Conduent (Conduent) Business Description

Traded in Other Exchanges
Address
100 Campus Drive, Suite 200, Florham Park, NJ, USA, 07932
Conduent Inc acts as a provider of business process services with expertise in transaction-intensive processing, analytics, and automation. The company provides industry-focused service offerings in growth markets such as Healthcare and Transportation as well as provides multi-industry services such as transaction processing, customer care, and payment services. It operates through three segments namely Commercial Industries which is the key revenue-driving segment, Government Services, and Transportation. The group operates its business in the United States, Europe, and Other areas of which the majority of its revenue is generated in the United States.
Executives
Clifford Skelton officer: Pres.& Chief Operating Officer 100 CAMPUS DRIVE, SUITE 200, FLORHAM PARK NJ 07932
Stephen Henry Wood officer: VP, Corporate Controller 100 CAMPUS DRIVE, SUITE 200E, FLORHAM PARK NJ 07932
Randall Edmon King officer: EVP, Commercial Solutions 100 CAMPUS DRIVE, SUITE 200, FLORHAM PARK NJ 07932
Mark E King officer: EVP, Government Solutions 100 CAMPUS DRIVE, SUITE 200, FLORHAM PARK NJ 07932
Louis Edward Keyes officer: Executive Vice President & CRO 100 CAMPUS DRIVE, SUITE 200E, FLORHAM PARK NJ 07932
Michael E Krawitz officer: EVP, GC & Secretary 1690 S CONGRESS AVE, STE 201, DELRAY BEACH FL 33445
Mark Simon Brewer officer: EVP & President -Public Sector 100 CAMPUS DRIVE, SUITE 200, FLORHAM PARK NJ 07932
Mark Prout officer: EVP, Chief Information Officer 100 CAMPUS DRIVE, SUITE 200E, FLORHAM PARK NJ 07932
A. Scott Letier director 5956 SHERRY LN, SUITE 800, DALLAS TX 75225
Steven D Miller director 16690 COLLINS AVENUE, PH, SUNNY ISLE BEACH FL 33160
Hunter Clark Gary director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Michael Montelongo director 203 EAST MAIN STREET, SPARTANBURG SC 29319
Hernandez Margarita Palau director 300 N. SAN RAFAEL AVE., PASADENA CA 91105
Higgins Victor Kathy J director 7075 FLYING CLOUD DRIVE, EDEN PRAIRIE MN 55344
Carl C Icahn 10 percent owner C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH-1, SUNNY ISLES BEACH FL 33160