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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 %. Dreamworks Animation SKG's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2016 was 1.13%.
As of today (2024-05-05), Dreamworks Animation SKG's WACC % is 0.00%. Dreamworks Animation SKG's ROIC % is 0.00% (calculated using TTM income statement data). Dreamworks Animation SKG earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Dreamworks Animation SKG'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.
Dreamworks Animation SKG Annual Data | |||||||||||||||||||||
Trend | Dec06 | Dec07 | Dec08 | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | |||||||||||
ROIC % | Get a 7-Day Free Trial | 6.50 | -3.21 | 3.62 | -63.27 | 1.06 |
Dreamworks Animation SKG Quarterly Data | ||||||||||||||||||||
Sep11 | Dec11 | Mar12 | Jun12 | Sep12 | Dec12 | Mar13 | Jun13 | Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | |
ROIC % | Get a 7-Day Free Trial | -5.35 | 14.35 | 13.02 | 3.03 | 1.13 |
For the Broadcasting subindustry, Dreamworks Animation SKG'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 Media - Diversified industry and Communication Services sector, Dreamworks Animation SKG's ROIC % distribution charts can be found below:
* The bar in red indicates where Dreamworks Animation SKG's ROIC % falls into.
Dreamworks Animation SKG's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2015 is calculated as:
ROIC % (A: Dec. 2015 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (A: Dec. 2014 ) | + | Invested Capital (A: Dec. 2015 )) | / count ) |
= | 16.439 * ( 1 - -8.56% ) | / | ( (1736.824 | + | 1638.319) | / 2 ) |
= | 17.8461784 | / | 1687.5715 | |||
= | 1.06 % |
where
Invested Capital | (A: Dec. 2014 ) | |||||||||||
= | 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 | )) |
= | 1969.705 | - | 198.654 | - | ( 34.227 | - | max(0, 243.598 | - | 1336.551 | + | 34.227 | )) |
= | 1736.824 |
Invested Capital | (A: Dec. 2015 ) | |||||||||||
= | 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 | )) |
= | 1969.975 | - | 220.842 | - | ( 110.814 | - | max(0, 393.357 | - | 1462.476 | + | 110.814 | )) |
= | 1638.319 |
Dreamworks Animation SKG's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2016 is calculated as:
ROIC % (Q: Jun. 2016 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Mar. 2016 ) | + | Invested Capital (Q: Jun. 2016 )) | / count ) |
= | 37.668 * ( 1 - 48.66% ) | / | ( (1706.047 | + | 1718.185) | / 2 ) |
= | 19.3387512 | / | 1712.116 | |||
= | 1.13 % |
where
Invested Capital | (Q: Mar. 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 | )) |
= | 1957.763 | - | 160.106 | - | ( 91.61 | - | max(0, 329.552 | - | 1449.62 | + | 91.61 | )) |
= | 1706.047 |
Invested Capital | (Q: Jun. 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 | )) |
= | 1974.485 | - | 181.155 | - | ( 75.145 | - | max(0, 331.633 | - | 1531.517 | + | 75.145 | )) |
= | 1718.185 |
Note: The Operating Income data used here is four times the quarterly (Jun. 2016) 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.
Dreamworks Animation SKG (NAS:DWA) 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, Dreamworks Animation SKG's WACC % is 0.00%. Dreamworks Animation SKG'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 Dreamworks Animation SKG's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Lucian Grainge | director | C/O ACTIVISION BLIZZARD, INC., 3100 OCEAN PARK BLVD, SANTA MONICA CA 90405 |
Fazal F Merchant | officer: Chief Financial Officer | 2230 E. IMPERIAL HIGHWAY, EL SEGUNDO CA 90245 |
Steven A Adams | officer: Chief Accounting Officer | 2260 E IMPERIAL HIGHWAY, EL SEGUNDO X1 90245 |
Jeffrey Katzenberg | director, 10 percent owner, officer: Chief Executive Officer | C/O DREAMWORKS ANIMATION SKG, INC. 1000 FLOWER STREET GLENDALE CA 91201 |
Michael J Montgomery | director | 100 WILSHIRE BOULEVARD SUITE 400 SANTA MONICA CA 90401 |
Thomas E Freston | director | VIACOM INC., 1515 BROADWAY, NEW YORK NY 10036 |
Jason Kilar | director | 208 S. AKARD ST, DALLAS TX 75202 |
Mary Agnes Wilderotter | director | 115 ALPINE TERRACE, OAKLAND CA 94618 |
Mellody L Hobson | director | C/O TELLABS, 1415 W DIEHL RD, NAPERVILLE IL 60563 |
Michael Francis | officer: Chief Global Brand Officer | 6501 LEGACY DRIVE, PLANO TX 75024 |
Lewis W Coleman | director, officer: Vice Chairman | |
Mark Zoradi | officer: Chief Operating Officer | C/O DREAMWORKS ANIMATION SKG, INC., 1000 FLOWER STREET, GLENDALE CA 91201 |
Roger A Enrico | director | |
Judson C Green | director | C/O NAVTEQ CORPORATION, 222 MERCHANDISE MART #900, CHICAGO IL 60554 |
Von Der Heyden Karl M | director | 25 CENTRAL PARK WEST, #24K, NEW YORK NY 10023 |
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