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Viasat ROIC %

: -1.00% (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 %. Viasat's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2022 was -1.00%.

As of today (2022-08-09), Viasat's WACC % is 5.98%. Viasat's ROIC % is 0.02% (calculated using TTM income statement data). Viasat earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Viasat ROIC % Historical Data

The historical data trend for Viasat'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.

Viasat Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.15 -1.18 6.59 0.82 0.02

Viasat Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 1.55 1.67 1.40 2.67 -1.00

Competitive Comparison

For the Communication Equipment subindustry, Viasat'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.

   

Viasat ROIC % Distribution

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

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



Viasat ROIC % Calculation

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

ROIC % (A: Mar. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Mar. 2021 ) + Invested Capital (A: Mar. 2022 ))/ count )
=8.33 * ( 1 - 86.61% )/( (4748.042 + 5663.002)/ 2 )
=1.115387/5205.522
=0.02 %

where

Invested Capital(A: Mar. 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))
=5349.467 - 318.629 - ( 295.949 - max(0, 708.437 - 991.233+295.949))
=4748.042

Invested Capital(A: Mar. 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))
=6389.346 - 415.885 - ( 310.459 - max(0, 770.421 - 1159.472+310.459))
=5663.002

Viasat'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 )
=-83.148 * ( 1 - 33.24% )/( (5482.654 + 5663.002)/ 2 )
=-55.5096048/5572.828
=-1.00 %

where

Invested Capital(Q: Dec. 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))
=6086.794 - 438.108 - ( 166.032 - max(0, 786.627 - 1027.871+166.032))
=5482.654

Invested Capital(Q: Mar. 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))
=6389.346 - 415.885 - ( 310.459 - max(0, 770.421 - 1159.472+310.459))
=5663.002

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.


Viasat  (NAS:VSAT) 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, Viasat's WACC % is 5.98%. Viasat's ROIC % is 0.02% (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.


Viasat ROIC % Related Terms

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Viasat Business Description

Viasat logo
Traded in Other Exchanges
Address
6155 El Camino Real, Carlsbad, CA, USA, 92009
Viasat Inc provides bandwidth technologies and services in three segments: satellite services, which provides satellite-based high-speed broadband services to consumers, enterprises, and commercial airlines; commercial networks, which develops end-to-end communication and connectivity systems; and government systems, which produces network-centric Internet Protocol-based secure government communication systems. A large majority of the firm's revenue is generated in the United States, with the rest coming from the Americas, Europe, Middle East, Africa, and Asia-Pacific.
Executives
Miller Craig Andrew officer: Pres. Government Systems C/O VIASAT, INC. 6155 EL CAMINO REAL CARLSBAD CA 92009
Nathan Krishna officer: Chief Information Officer 55 WATER STREET NEW YORK NY 10020
Dixon Evan Christopher officer: Pres. Global Fixed Broadband C/O VIASAT, INC. 6155 EL CAMINO REAL CARLSBAD CA 92009
Bridenstine James Frederick director C/O VIASAT, INC. 6155 EL CAMINO REAL CARLSBAD CA 92009
Dodd James Michael officer: President, Global Mobile 6155 EL CAMINO REAL CARLSBAD CA 92009
Wise Theresa director 400 FAIRVIEW AVENUE NORTH SUITE 1200 SEATTLE WA 98109
Klarman Seth A 10 percent owner 10 ST JAMES AVENUE STE 1700 BOSTON MA 02116
Baupost Group Gp, L.l.c. 10 percent owner 10 ST. JAMES AVENUE SUITE 1700 BOSTON MA 02116
Baupost Group Llc/ma 10 percent owner 10 ST JAMES AVE SUITE 1700 BOSTON MA 02116
Ryan David Louis officer: President Space Systems 6155 EL CAMINO REAL CARLSBAD CA 92009
Agnew Marc Henry officer: VP Commercial Networks 6155 EL CAMINO REAL CARLSBAD CA 92009
Pak Sean director 6155 EL CAMINO REAL CARLSBAD CA 92009
Rao Varsha Rajendra director 6155 EL CAMINO REAL CARLSBAD CA 92009
Chandran Girish officer: VP and CTO 6155 EL CAMINO REAL CARLSBAD CA 92009
Blair Robert James Blair officer: Vice President 6155 EL CAMINO REAL CARLSBAD CA 92009

Viasat Headlines

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