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S&P Global ROIC %

: 4.41% (As of Jun. 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 %. S&P Global's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2022 was 4.41%.

As of today (2022-08-10), S&P Global's WACC % is 7.73%. S&P Global's ROIC % is 8.43% (calculated using TTM income statement data). S&P Global generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


S&P Global ROIC % Historical Data

The historical data trend for S&P Global'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.

S&P Global Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROIC %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 22.61 27.36 28.26 29.31 33.74

S&P Global Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 36.69 36.72 30.95 4.17 4.41

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, S&P Global'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.

   

S&P Global ROIC % Distribution

For the Capital Markets industry and Financial Services sector, S&P Global's ROIC % distribution charts can be found below:

* The bar in red indicates where S&P Global's ROIC % falls into.



S&P Global ROIC % Calculation

S&P Global'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 )
=4210 * ( 1 - 21.64% )/( (9819 + 9736)/ 2 )
=3298.956/9777.5
=33.74 %

where

S&P Global's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2022 is calculated as:

ROIC % (Q: Jun. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2022 ) + Invested Capital (Q: Jun. 2022 ))/ count )
=3660 * ( 1 - 24.44% )/( (63030 + 62495)/ 2 )
=2765.496/62762.5
=4.41 %

where

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


S&P Global  (NYSE:SPGI) 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, S&P Global's WACC % is 7.73%. S&P Global's ROIC % is 8.43% (calculated using TTM income statement data). S&P Global generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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. S&P Global earns returns that do not match up to its cost of capital. It will destroy value as it grows.


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.


S&P Global ROIC % Related Terms

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S&P Global Business Description

S&P Global logo
Address
55 Water Street, New York, NY, USA, 10041
S&P Global provides data and benchmarks to capital and commodity market participants. In 2021 and excluding IHS Markit, S&P Ratings was over 45% of the firm's revenue and over 55% of the firm's operating income. S&P Ratings is the largest credit rating agency in the world. The firm's other segments include Market Intelligence, Indices, and Platts. Market Intelligence provides desktop tools and other data solutions to investment banks, corporations, and other entities. Indices provides benchmarks for financial markets and is monetized through subscriptions, asset-based fees, and transaction-based royalties. Platts provides benchmarks to commodity markets, principally petroleum.
Executives
Evans Gay Huey director SHIPPING & RECEIVING CENTER 16930 PARK ROW DR. HOUSTON TX 77084
Esculier Jacques director C/O AMERICAN STANDARD COMPANIES INC ONE CENTENNIAL AVENUE PISCATAWAY NJ 08855
Moore Sally officer: EVP, Strategic Alliances 55 WATER STREET NEW YORK NY 10041
Kansler Adam Jason officer: President, Market Intelligence C/O MARKIT LTD, 4TH FL, ROPEMAKER PLACE 25 ROPEMAKER STREET LONDON X0 EC2Y 9LY
Tavernier Edouard officer: Head of Global Transportation C/O IHS MARKIT LTD., 4TH FLOOR ROPEMAKER PLACE, 25 ROPEMAKER STREET LONDON, ENGLAND X0 EC2Y 9LY
Kelly Robert P director ONE MELLON CENTER PITTSBURGH PA 15258-0001
Mcwhinney Deborah D director PO BOX 40 EAST BROADWAY BUTTE MT 59701
Washington Gregory N director 55 WATER STREET 45TH FLOOR NEW YORK NY 10041
Saha Saugata officer: President, S&P Global Platts 55 WATER STREET NEW YORK NY 10041
Livingston Ian Paul director 55 WATER STREET NEW YORK NY 10041
Draper Daniel E officer: CEO, S&P Dow Jones Indices 55 WATER STREET NEW YORK NY 10041
William Amelio J. director C/O CHC GROUP LTD. 190 ELGIN AVENUE, GEORGE TOWN GRAND CAYMAN E9 KY1-9005
Craig Christopher officer: SVP and Controller 55 WATER STREET LEGAL DEPARTMENT NEW YORK NY 10041
Manis Dimitra officer: Chief People Officer 55 WATER STREET S&P GLOBAL, 45TH FLOOR NEW YORK NY 10041
Leroux Monique F. director S&P GLOBAL INC. 55 WATER STREET NEW YORK NY 10041

S&P Global Headlines

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