Market Cap : 2.47 B | Enterprise Value : 1.9 B | PE Ratio : At Loss | PB Ratio : 8.38 |
---|
NYSE:YOU has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
NYSE:YOU has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Clear Secure's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2022 was -12.36%.
As of today (2022-08-18), Clear Secure's WACC % is 7.81%. Clear Secure's ROIC % is -42.12% (calculated using TTM income statement data). Clear Secure earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Clear Secure'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.
For the Software - Application subindustry, Clear Secure'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.
For the Software industry and Technology sector, Clear Secure's ROIC % distribution charts can be found below:
* The bar in red indicates where Clear Secure's ROIC % falls into.
Clear Secure'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 ) |
= | -114.933 * ( 1 - -0.2% ) | / | ( (189.54 | + | 366.368) | / 2 ) |
= | -115.162866 | / | 277.954 | |||
= | -41.43 % |
where
Invested Capital | (A: Dec. 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 | )) |
= | 232.268 | - | 17.196 | - | ( 154.039 | - | max(0, 146.104 | - | 171.636 | + | 154.039 | )) |
= | 189.54 |
Invested Capital | (A: 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 | )) |
= | 812.75 | - | 57.895 | - | ( 615.335 | - | max(0, 264.591 | - | 653.078 | + | 615.335 | )) |
= | 366.368 |
Clear Secure'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 ) |
= | -52.488 * ( 1 - 1.18% ) | / | ( (405.315 | + | 433.822) | / 2 ) |
= | -51.8686416 | / | 419.5685 | |||
= | -12.36 % |
where
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 | )) |
= | 854.055 | - | 70.8 | - | ( 633.487 | - | max(0, 290.405 | - | 668.345 | + | 633.487 | )) |
= | 405.315 |
Invested Capital | (Q: Jun. 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 | )) |
= | 893.876 | - | 89.449 | - | ( 673.669 | - | max(0, 331.98 | - | 702.585 | + | 673.669 | )) |
= | 433.822 |
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.
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, Clear Secure's WACC % is 7.81%. Clear Secure's ROIC % is -42.12% (calculated using TTM income statement data).
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.
Thank you for viewing the detailed overview of Clear Secure's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Liu Dennis W. | officer: Chief Accounting Officer | 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022 |
General Atlantic (alc), L.p. | 10 percent owner | C/O GENERAL ATLANTIC SERVICE CO., L.P. 55 EAST 52ND STREET, 33RD FLOOR NEW YORK NY 10055 |
General Atlantic (lux) S.a R.l. | 10 percent owner | 412F ROUTE D'ESCH LUXEMBOURG P7 10055 |
General Atlantic Partners (lux), Scsp | 10 percent owner | 55 EAST 52ND STREET FLOOR 33 NEW YORK NY 10055 |
General Atlantic Genpar (lux) Scsp | 10 percent owner | 412F ROUTE D'ESCH LUXEMBOURG N4 2086 |
General Atlantic Partners (bermuda) Eu, L.p. | 10 percent owner | C/O GENERAL ATLANTIC SERVICE COMPANY LP 55 EAST 52ND STREET, 33RD FLOOR NEW YORK NY 10055 |
Gap (bermuda) L.p. | 10 percent owner | C/O GENERAL ATLANTIC SERVICE COMPANY 55 EAST 52ND ST. 32ND FLOOR NEW YORK NY 10055 |
General Atlantic Genpar (bermuda), L.p. | 10 percent owner | C/O GENERAL ATLANTIC SERVICE COMPANY,LLC 55 EAST 52ND ST. 32ND FLOOR NEW YORK NY 10055 |
General Atlantic Partners 100, L.p. | 10 percent owner | C/O GENERAL ATLANTIC SERVICE COMPANY,LP 55 EAST 52ND STREET, 33RD FLOOR NEW YORK NY 10055 |
Perrin Walter Catesby Iii | officer: EVP, Growth | 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022 |
Comella Maria A. | officer: Head of Public Affairs | 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022 |
Cornick Kenneth L. | director, 10 percent owner, officer: President & CFO | 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022 |
Jouhal Chiranjiv S. | officer: Chief Technology Officer | 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022 |
Levine Matthew | officer: GC & Chief Privacy Officer | 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022 |
Patterson Richard N. Jr. | officer: Chief Info Sec. Officer | 65 EAST 55TH STREET, 17TH FLOOR NEW YORK NY 10022 |
Other Sources
By Zacks 2021-08-24
By tipranks.com 2022-03-24
By tipranks.com 2022-03-23
By tipranks.com 2022-03-21
By tipranks.com 2022-03-25
By Seekingalpha 2021-11-15
By Seekingalpha 2021-09-27
By Seekingalpha 2022-03-11
By tipranks.com 2022-03-24
By Seekingalpha 2021-06-29