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Silver Spike III Acquisition (NEOE:SPKC.U) ROIC % : -7.43% (As of Mar. 2023)


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What is Silver Spike III Acquisition ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Silver Spike III Acquisition's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2023 was -7.43%.

As of today (2024-05-13), Silver Spike III Acquisition's WACC % is 0.00%. Silver Spike III Acquisition's ROIC % is 0.00% (calculated using TTM income statement data). Silver Spike III Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Silver Spike III Acquisition ROIC % Historical Data

The historical data trend for Silver Spike III 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.

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Silver Spike III Acquisition ROIC % Chart

Silver Spike III Acquisition Annual Data
Trend Dec21 Dec22
ROIC %
- -0.94

Silver Spike III Acquisition Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
ROIC % Get a 7-Day Free Trial Premium Member Only -0.63 -0.35 -0.29 -1.41 -7.43

Competitive Comparison of Silver Spike III Acquisition's ROIC %

For the Shell Companies subindustry, Silver Spike III 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.


Silver Spike III Acquisition's ROIC % Distribution in the Diversified Financial Services Industry

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

* The bar in red indicates where Silver Spike III Acquisition's ROIC % falls into.



Silver Spike III Acquisition ROIC % Calculation

Silver Spike III Acquisition's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROIC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=-0.655 * ( 1 - 0% )/( (127.722 + 11.849)/ 2 )
=-0.655/69.7855
=-0.94 %

where

Silver Spike III Acquisition's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2023 is calculated as:

ROIC % (Q: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2022 ) + Invested Capital (Q: Mar. 2023 ))/ count )
=-0.884 * ( 1 - 0% )/( (11.849 + 11.948)/ 2 )
=-0.884/11.8985
=-7.43 %

where

Note: The Operating Income data used here is four times the quarterly (Mar. 2023) 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.


Silver Spike III Acquisition  (NEOE:SPKC.U) 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, Silver Spike III Acquisition's WACC % is 0.00%. Silver Spike III Acquisition'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.


Silver Spike III Acquisition ROIC % Related Terms

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Silver Spike III Acquisition (NEOE:SPKC.U) Business Description

Traded in Other Exchanges
N/A
Address
660 Madison Avenue, Suite 1600, New York, NY, USA, 10065
Silver Spike III Acquisition Corp is a special purpose acquisition corporation. The Corporation continues to search for target businesses with a focus on the cannabis sector and related industries such as consumer packaged goods, health & wellness, technology, pharmaceuticals, manufacturing, distribution, logistics, and brand management.

Silver Spike III Acquisition (NEOE:SPKC.U) Headlines

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