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DocuSign ROIC %

: -3.38% (As of Apr. 2022)
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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 %. DocuSign's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2022 was -3.38%.

As of today (2022-06-28), DocuSign's WACC % is 5.24%. DocuSign's ROIC % is -3.11% (calculated using TTM income statement data). DocuSign earns returns that do not match up to its cost of capital. It will destroy value as it grows.


DocuSign ROIC % Historical Data

The historical data trend for DocuSign'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.

DocuSign Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
ROIC %
Premium Member Only Premium Member Only -11.43 -52.17 -14.95 -9.90 -2.81

DocuSign Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
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 -2.58 -4.08 -0.57 -4.36 -3.38

Competitive Comparison

For the Software - Application subindustry, DocuSign'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.

   

DocuSign ROIC % Distribution

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

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



DocuSign ROIC % Calculation

DocuSign's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jan. 2022 is calculated as:

ROIC % (A: Jan. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jan. 2021 ) + Invested Capital (A: Jan. 2022 ))/ count )
=-61.884 * ( 1 - -4.58% )/( (2163.399 + 2449.127)/ 2 )
=-64.7182872/2306.263
=-2.81 %

where

Invested Capital(A: Jan. 2021 )
=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))
=2336.507 - 103.933 - ( 773.505 - max(0, 1093.173 - 1162.348+773.505))
=2163.399

Invested Capital(A: Jan. 2022 )
=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))
=2541.265 - 144.181 - ( 802.822 - max(0, 1371.639 - 1319.596+802.822))
=2449.127

DocuSign's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Apr. 2022 is calculated as:

ROIC % (Q: Apr. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2022 ) + Invested Capital (Q: Apr. 2022 ))/ count )
=-76.904 * ( 1 - -7.24% )/( (2449.127 + 2436.174)/ 2 )
=-82.4718496/2442.6505
=-3.38 %

where

Invested Capital(Q: Jan. 2022 )
=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))
=2541.265 - 144.181 - ( 802.822 - max(0, 1371.639 - 1319.596+802.822))
=2449.127

Invested Capital(Q: Apr. 2022 )
=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))
=2574.131 - 119.149 - ( 967.615 - max(0, 1343.716 - 1362.524+967.615))
=2436.174

Note: The Operating Income data used here is four times the quarterly (Apr. 2022) 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.


DocuSign  (NAS:DOCU) 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, DocuSign's WACC % is 5.24%. DocuSign's ROIC % is -3.11% (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.


DocuSign ROIC % Related Terms

Thank you for viewing the detailed overview of DocuSign's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


DocuSign Business Description

DocuSign logo
Industry
Technology » Software NAICS : 511210 SIC : 7379
Traded in Other Exchanges
Address
221 Main Street, Suite 1550, San Francisco, CA, USA, 94105
DocuSign offers the Agreement Cloud, a broad cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device. The company was founded in 2003 and completed its IPO in May 2018.
Executives
Gaylor Cynthia officer: Chief Financial Officer C/O PIVOTAL SOFTWARE, INC. 875 HOWARD STREET, FIFTH FLOOR SAN FRANCISCO CA 94103
Olrich Scott V. officer: Chief Operating Officer C/O DOCUSIGN, INC. 221 MAIN ST., SUITE 1000 SAN FRANCISCO CA 94105
Salem Enrique T director SYMANTEC CORPORATION 20330 STEVENS CREEK BLVD. CUPERTINO CA 95014
Solvik Peter director 2105 SOUTH BASCOM AVE. #370 CAMPBELL CA 95008
Alhadeff Loren officer: Chief Revenue Officer C/O DOCUSIGN, INC. SUITE 1000 SAN FRANCISCO CA 94105
Wilderotter Mary Agnes director 115 ALPINE TERRACE OAKLAND CA 94618
Springer Daniel D. director, officer: President and CEO C/O DOCUSIGN, INC. 221 MAIN ST., SUITE 1000 SAN FRANCISCO CA 94105
Phi Tram T officer: SVP, General Counsel C/O IMPERVA, INC. 3400 BRIDGE PARKWAY REDWOOD SHORES CA 94065
Suh Inhi Cho director C/O DOCUSIGN, INC. 221 MAIN STREET, SUITE 1000 SAN FRANCISCO CA 94105
Singh Sudhir Steven director 6222 185TH AVE REDMOND WA 98052
Irving Blake director 14455 N. HAYDEN RD. SCOTTSDALE AZ 85260
Briggs Teresa director 2225 LAWSON LANE SANTA CLARA CA 95054
Beer James A director MCKESSON CORPORATION ONE POST STREET SAN FRANCISCO CA 94104
Wolberg Kirsten O. officer: Chief Technology & Ops Officer 900 NORTH MCCARTHY BLVD MILPITAS CA 95035
Sheridan Michael J officer: Chief Financial Officer C/O DOCUSIGN, INC. 221 MAIN ST., SUITE 1000 SAN FRANCISCO CA 94105

DocuSign Headlines

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