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Digital World Acquisition ROIC %

: -2.61% (As of Mar. 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 %. Digital World Acquisition's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2022 was -2.61%.

As of today (2022-05-25), Digital World Acquisition's WACC % is 0.00%. Digital World Acquisition's ROIC % is -1.88% (calculated using TTM income statement data). Digital World Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Digital World Acquisition ROIC % Historical Data

The historical data trend for Digital World Acquisition'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.

Digital World Acquisition Annual Data
Trend Dec20 Dec21
ROIC %
- -0.47

Digital World Acquisition Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22
ROIC % - -2.58 -0.44 -1.68 -2.61

Competitive Comparison

For the Shell Companies subindustry, Digital World Acquisition'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.

   

Digital World Acquisition ROIC % Distribution

For the Diversified Financial Services industry and Financial Services sector, Digital World Acquisition's ROIC % distribution charts can be found below:

* The bar in red indicates where Digital World Acquisition's ROIC % falls into.



Digital World Acquisition ROIC % Calculation

Digital World Acquisition's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2021 is calculated as:

ROIC % (A: Dec. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2020 ) + Invested Capital (A: Dec. 2021 ))/ count )
=-1.392 * ( 1 - 0% )/( (0 + 293.422)/ 1 )
=-1.392/293.422
=-0.47 %

where

Digital World Acquisition's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2022 is calculated as:

ROIC % (Q: Mar. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2021 ) + Invested Capital (Q: Mar. 2022 ))/ count )
=-7.656 * ( 1 - 0% )/( (293.422 + 293.693)/ 2 )
=-7.656/293.5575
=-2.61 %

where

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


Digital World Acquisition  (NAS:DWAC) 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, Digital World Acquisition's WACC % is 0.00%. Digital World Acquisition's ROIC % is -1.88% (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.


Digital World Acquisition ROIC % Related Terms

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Digital World Acquisition Business Description

Digital World Acquisition logo
Industry
Traded in Other Exchanges
Address
78 SW 7th Street, Miami, FL, USA, 33130
Website
Digital World Acquisition Corp is a blank check company.
Executives
Barclays Plc 10 percent owner 1 CHURCHILL PLACE CANARY WHARF LONDON X0 E14 5HP
Orlando Patrick Francis director, 10 percent owner, officer: CEO and Chairman 212 E 48TH STREET - PHB NEW YORK NY 10017
Shaner Justin director 2000 S BAYSHORE DR UNIT 20 MIAMI FL 33133
Swider Eric director 2000 S BAYSHORE DR UNIT 20 MIAMI FL 33133
Veloso Rodrigo director 78 SW 7TH STREET MIAMI FL 33130
Garelick Bruce J. director 78 SW 7TH STREET MIAMI FL 33130
Montie Jacobson director 78 SW 7TH STREET MIAMI FL 33130
Orleans-braganza Luiz officer: Chief Financial Officer 78 SW 7TH STREET MIAMI FL 33130
Arc Global Investments Ii Llc 10 percent owner 78 SW 7TH STREET MIAMI FL 33130

Digital World Acquisition Headlines

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