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DAKT (Daktronics) ROC % : -4.46% (As of Jan. 2025)


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What is Daktronics ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Daktronics's annualized return on capital (ROC %) for the quarter that ended in Jan. 2025 was -4.46%.

As of today (2025-03-14), Daktronics's WACC % is 13.68%. Daktronics's ROC % is 1.99% (calculated using TTM income statement data). Daktronics earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Daktronics ROC % Historical Data

The historical data trend for Daktronics's ROC % 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.

Daktronics ROC % Chart

Daktronics Annual Data
Trend Apr15 Apr16 Apr17 Apr18 Apr19 Apr20 Apr21 Apr22 Apr23 Apr24
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.70 5.22 0.76 3.86 15.25

Daktronics Quarterly Data
Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25
ROC % Get a 7-Day Free Trial 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 7.99 7.73 -566.74 16.09 -4.46

Daktronics ROC % Calculation

Daktronics's annualized Return on Capital (ROC %) for the fiscal year that ended in Apr. 2024 is calculated as:

ROC % (A: Apr. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Apr. 2023 ) + Invested Capital (A: Apr. 2024 ))/ count )
=87.115 * ( 1 - 35.95% )/( (360.874 + 371.073)/ 2 )
=55.7971575/365.9735
=15.25 %

where

Invested Capital(A: Apr. 2023 )
=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))
=468.104 - 82.714 - ( 24.516 - max(0, 210.163 - 342.657+24.516))
=360.874

Invested Capital(A: Apr. 2024 )
=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))
=527.884 - 75.512 - ( 81.299 - max(0, 192.296 - 401.949+81.299))
=371.073

Daktronics's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2025 is calculated as:

ROC % (Q: Jan. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Oct. 2024 ) + Invested Capital (Q: Jan. 2025 ))/ count )
=-14.512 * ( 1 - 3.7% )/( (316.729 + 309.992)/ 2 )
=-13.975056/313.3605
=-4.46 %

where

Invested Capital(Q: Oct. 2024 )
=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))
=551.886 - 100.805 - ( 134.352 - max(0, 180.097 - 422.792+134.352))
=316.729

Invested Capital(Q: Jan. 2025 )
=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))
=524.156 - 81.995 - ( 132.169 - max(0, 162.438 - 394.414+132.169))
=309.992

Note: The Operating Income data used here is four times the quarterly (Jan. 2025) 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.


Daktronics  (NAS:DAKT) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Daktronics's WACC % is 13.68%. Daktronics's ROC % is 1.99% (calculated using TTM income statement data). Daktronics 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 %, ROC % 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.


Daktronics ROC % Related Terms

Thank you for viewing the detailed overview of Daktronics's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Daktronics Business Description

Traded in Other Exchanges
Address
201 Daktronics Drive, Brookings, SD, USA, 57006
Daktronics Inc designs and manufactures electronic scoreboards, programmable display systems, and large-screen video displays for sporting, commercial, and transportation applications. It is engaged in a full range of activities: marketing and sales, engineering and product design and development, manufacturing, technical contracting, professional services, and customer service and support. The company offers a complete line of products, from small scoreboards and electronic displays to large multimillion-dollar video display systems as well as related control, timing, and sound systems. The company has five reportable segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company makes the majority of its revenue from Live events.
Executives
John Patrick Friel director 548 SQUIRE PLACE, PITTSBURGH PA 15237-4860
Reece A Kurtenbach other: Vice President, Video Systems 201 DAKTRONICS DR., BROOKINGS SD 57006-5128
Matthew John Kurtenbach other: VP of Manufacturing 1016 CHRISTINE AVE, BROOKINGS SD 57006
Bradley T Wiemann other: VP, Commercial & Trans Mkts 225 TRAIL RIDGE RD, BROOKINGS SD 57006
Sheila Mae Anderson officer: CFO & Treasurer 3310 WALNUT LN, BROOKINGS SD 57006
Howard I Atkins director OCCIDENTAL PETROLEUM CORPORATION, 5 GREENWAY PLAZA, STE 110, HOUSTON TX 77046
Andrew David Siegel director 1350 E FLAMINGO RD, #253, LAS VEGAS NV 89119
Shereta Diana Williams director 1124 KNOTT ST SE, ATLANTA GA 30316-3124
Lance Dean Bultena director 2620 N. UNDERWOOD STREET, ARLINGTON VA 22213
Jose-marie Griffiths director 1022 NE 9TH ST, MADISON SD 57042
Carla S Gatzke officer: Secretary
John L Mulligan director 2417 EAST SOLANO DR, PHOENIX AZ 85016
Nancy D Frame director P O BOX PCS 116, PARIS I0 09777
Byron J Anderson director 395 PAGE MILL RD, MS A3 18, PALO ALTO CA 94306
James B Morgan director, officer: CEO & President 2834 WESTERN AVE S, BROOKINGS SD 57006