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Medallia ROIC %

: -24.37% (As of Jul. 2021)
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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 %. Medallia's annualized return on invested capital (ROIC %) for the quarter that ended in Jul. 2021 was -24.37%.

As of today (2022-07-07), Medallia's WACC % is 7.46%. Medallia's ROIC % is -22.11% (calculated using TTM income statement data). Medallia earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Medallia ROIC % Historical Data

The historical data trend for Medallia'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.

Medallia Annual Data
Trend Jan18 Jan19 Jan20 Jan21
ROIC %
-27.11 -27.11 -27.32 -20.35

Medallia Quarterly Data
Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21
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 -25.31 -18.17 -21.64 -22.13 -24.37

Competitive Comparison

For the Software - Application subindustry, Medallia'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.

   

Medallia ROIC % Distribution

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

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



Medallia ROIC % Calculation

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

ROIC % (A: Jan. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jan. 2020 ) + Invested Capital (A: Jan. 2021 ))/ count )
=-138.028 * ( 1 - -0.05% )/( (507.38 + 849.617)/ 2 )
=-138.097014/678.4985
=-20.35 %

where

Invested Capital(A: Jan. 2020 )
=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))
=731.649 - 9.113 - ( 343.699 - max(0, 324.151 - 539.307+343.699))
=507.38

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))
=1401.649 - 20.453 - ( 682.389 - max(0, 387.183 - 918.762+682.389))
=849.617

Medallia's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jul. 2021 is calculated as:

ROIC % (Q: Jul. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Apr. 2021 ) + Invested Capital (Q: Jul. 2021 ))/ count )
=-239.348 * ( 1 - -1.52% )/( (986.564 + 1007.826)/ 2 )
=-242.9860896/997.195
=-24.37 %

where

Invested Capital(Q: Apr. 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))
=1363.153 - 26.752 - ( 540.537 - max(0, 356.985 - 706.822+540.537))
=986.564

Invested Capital(Q: Jul. 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))
=1358.853 - 29.584 - ( 507.579 - max(0, 381.141 - 702.584+507.579))
=1007.826

Note: The Operating Income data used here is four times the quarterly (Jul. 2021) 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.


Medallia  (NYSE:MDLA) 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, Medallia's WACC % is 7.46%. Medallia's ROIC % is -22.11% (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.


Medallia ROIC % Related Terms

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Medallia Business Description

Medallia logo
Industry
Technology » Software NAICS : 511210 SIC : 7379
Traded in Other Exchanges
N/A
Address
575 Market Street, Suite 1850, San Francisco, CA, USA, 94105
Medallia Inc is a software company. Its SaaS platform, the Medallia Experience Cloud, captures experience data from signal fields emitted by customers and employees. It utilizes AI technology to analyze structured and unstructured data from these signal fields across human, digital and internet of things, or IoT, interactions. The company provides solutions to various industries including Automotive, Healthcare, Hospitality, Insurance, and Retail among others.
Executives
Stretch Leslie director, officer: President & CEO 4140 DUBLIN BLVD SUITE 400 DUBLIN CA 94568
Ottosson Mikael J officer: EVP & Chief Technology Officer C/O MEDALLIA INC 575 MARKET STREET SUITE 1850 SAN FRANCISCO CA 94105
Oulman Roxanne officer: CFO and EVP 4140 DUBLIN BOULEVARD SUITE 400 DUBLIN CA 94568
Duan Jimmy C. officer: EVP & Chief Customer Officer 4140 DUBLIN BLVD SUITE 400 DUBLIN CA 94568
Meresman Stanley J director 2071 HUNTINGTON LANE LOS ALTOS CA 94024
Hald Borge director C/O MEDALLIA INC 575 MARKET STREET SUITE 1850 SAN FRANCISCO CA 94105
Pressman Amy E director C/O MEDALLIA INC 575 MARKET STREET SUITE 1850 SAN FRANCISCO CA 94105
Walske Steven director C/O PARAMETRIC TECHNOLOGY CORP 128 TECHNOLOGY DR WALTHAM MA 02154
White James D director 500 W. MONROE ST., 28TH FLOOR ADTALEM GLOBAL EDUCATION CHICAGO IL 60661
Dauerman Mitchell K director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: DAUERMAN MITCHELL K a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Bernshteyn Robert director C/O SUCCESSFACTORS, INC., 1500 FASHION ISLAND BLVD., SUITE 300 SAN MATEO CA 94404
Leone Douglas M director, 10 percent owner C/O SEQUOIA CAPITAL 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Kilgore Leslie J director 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Sc Us Ssf 2013 (ttgp), L.l.c. 10 percent owner 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025
Scggf Management, L.p. 10 percent owner 2800 SAND HILL RD, SUITE 101 MENLO PARK CA 94025

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