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Cannae Holdings ROIC %

: -2.00% (As of Sep. 2021)
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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 %. Cannae Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2021 was -2.00%.

As of today (2022-01-27), Cannae Holdings's WACC % is 6.03%. Cannae Holdings's ROIC % is -2.80% (calculated using TTM income statement data). Cannae Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Cannae Holdings ROIC % Historical Data

The historical data trend for Cannae Holdings'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.

Cannae Holdings Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROIC %
Premium Member Only -0.52 -4.91 -3.43 -7.45 -5.25

Cannae Holdings Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
ROIC % 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 Premium Member Only Premium Member Only Premium Member Only -2.88 -5.12 -3.10 -2.89 -2.00

Competitive Comparison

For the Restaurants subindustry, Cannae Holdings'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.

   

Cannae Holdings ROIC % Distribution

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

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



Cannae Holdings ROIC % Calculation

Cannae Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2020 is calculated as:

ROIC % (A: Dec. 2020 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2019 ) + Invested Capital (A: Dec. 2020 ))/ count )
=-180.7 * ( 1 - 22.05% )/( (1536.2 + 3830.6)/ 2 )
=-140.85565/2683.4
=-5.25 %

where

Cannae Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2021 is calculated as:

ROIC % (Q: Sep. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2021 ) + Invested Capital (Q: Sep. 2021 ))/ count )
=-99.2 * ( 1 - 17.83% )/( (4132.1 + 4033.3)/ 2 )
=-81.51264/4082.7
=-2.00 %

where

Note: The Operating Income data used here is four times the quarterly (Sep. 2021) 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.


Cannae Holdings  (NYSE:CNNE) 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, Cannae Holdings's WACC % is 6.03%. Cannae Holdings's ROIC % is -2.80% (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.


Cannae Holdings ROIC % Related Terms

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Cannae Holdings Business Description

Cannae Holdings logo
Industry
Consumer Cyclical » Restaurants NAICS : 722511 SIC : 5963
Traded in Other Exchanges
Address
1701 Village Center Circle, Las Vegas, NV, USA, 89134
Cannae Holdings Inc is a holding company that manages and operates a group of companies and investments. The company's reportable segments are Dun & Bradstreet, Optimal Blue, Restaurant Group, and Corporate & Other.
Executives
Massey Richard N director, officer: Chief Executive Officer 900 S. SHACKLEFORD ROAD SUITE 401 LITTLE ROCK AR 72211
Coy Bryan D. officer: Chief Financial Officer 1701 VILLAGE CENTER CIRCLE LAS VEGAS NV 89134
Martire Frank R director CANNAE HOLDING, INC. 1701 VILLAGE CENTER CIRCLE LAS VEGAS NV 89134
Gravelle Michael L officer: Executive Vice President 601 RIVERSIDE AVENUE JACKSONVILLE FL 32204
Bickett Brent B officer: President FIDELITY NATIONAL FINANCIAL, INC. 601 RIVERSIDE AVENUE JACKSONVILLE FL 32204
Cox Richard L. officer: Executive Vice President & CFO 601 RIVERSIDE AVENUE JACKSONVILLE FL 32204
Meinhardt Erika director 601 RIVERSIDE AVENUE JACKSONVILLE FL 32204
Willey Frank P director FIDELITY NATIONAL FINANCIAL, INC. 601 RIVERSIDE AVENUE JACKSONVILLE FL 32204
Harris Hugh R director 601 RIVERSIDE AVENUE JACKSONVILLE FL 32204
Ducommun David officer: Sr. VP - Mergers/Acquisitions 1701 VILLAGE CENTER CIRCLE LAS VEGAS NV 89134
Holland C Malcolm Iii director 8214 WESTCHESTER DRIVE, SUITE 400 DALLAS TX 75225
Stallings James B Jr director 601 RIVERSIDE AVE JACKSONVILLE FL 32204
Linehan Mark David director 5330 DEBBIE ROAD, SUITE 100 SANTA BARBARA CA 93111
Foley William P Ii director, officer: Chairman FIDELITY NATIONAL FINANCIAL, INC. 601 RIVERSIDE AVENUE JACKSONVILLE FL 32204
Fidelity National Title Insurance Co 10 percent owner 601 RIVERSIDE AVENUE JACKSONVILLE FL 32204

Cannae Holdings Headlines

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