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DBRG (DigitalBridge Group) ROC % : 0.71% (As of Sep. 2024)


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What is DigitalBridge Group 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 %. DigitalBridge Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 0.71%.

As of today (2024-12-14), DigitalBridge Group's WACC % is 9.98%. DigitalBridge Group's ROC % is 7.43% (calculated using TTM income statement data). DigitalBridge Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.


DigitalBridge Group ROC % Historical Data

The historical data trend for DigitalBridge Group'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.

DigitalBridge Group ROC % Chart

DigitalBridge Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.60 -1.07 0.13 2.03 4.66

DigitalBridge Group Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
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 5.41 13.27 -0.49 15.91 0.71

DigitalBridge Group ROC % Calculation

DigitalBridge Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=304.873 * ( 1 - 0% )/( (9953.989 + 3118.184)/ 2 )
=304.873/6536.0865
=4.66 %

where

Invested Capital(A: Dec. 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))
=11028.503 - 218.95 - ( 855.564 - max(0, 5561.092 - 9492.022+855.564))
=9953.989

Invested Capital(A: Dec. 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))
=3562.55 - 99.031 - ( 345.335 - max(0, 99.184 - 464.355+345.335))
=3118.184

DigitalBridge Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=23.012 * ( 1 - 1.86% )/( (3177.821 + 3190.874)/ 2 )
=22.5839768/3184.3475
=0.71 %

where

Invested Capital(Q: Jun. 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))
=3502.42 - 63.426 - ( 261.173 - max(0, 63.584 - 382.52+261.173))
=3177.821

Invested Capital(Q: Sep. 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))
=3542.947 - 57.657 - ( 294.416 - max(0, 57.872 - 412.845+294.416))
=3190.874

Note: The Operating Income data used here is four times the quarterly (Sep. 2024) 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.


DigitalBridge Group  (NYSE:DBRG) 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, DigitalBridge Group's WACC % is 9.98%. DigitalBridge Group's ROC % is 7.43% (calculated using TTM income statement data). DigitalBridge Group 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.


DigitalBridge Group ROC % Related Terms

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DigitalBridge Group Business Description

Address
750 Park of Commerce Drive, Suite 210, Boca Raton, FL, USA, 33487
DigitalBridge Group Inc is a developer of alternative asset manager dedicated to investing in digital infrastructure. The company's platform invests in and operates businesses across the digital ecosystem, including cell towers, data centers, fiber, small cells, and edge infrastructure, to provide clients with funds for digital infrastructure real estate infrastructure.
Executives
James Keith Brown director C/O DIGITALBRIDGE GROUP, INC., 750 PARK OF COMMERCE DRIVE, SUITE 210, BOCA RATON FL 33487
Geoffrey Goldschein officer: CLO and Secretary C/O DIGITALBRIDGE GROUP, INC., 590 MADISON AVENUE, 34TH FLOOR, NEW YORK NY 10022
Benjamin J. Jenkins officer: President & CIO C/O DIGITALBRIDGE GROUP, INC., 590 MADISON AVENUE, 34TH FLOOR, NEW YORK NY 10022
Liam Stewart officer: Chief Operating Officer 125 W. 55TH STREET, NEW YORK NY 10019
Marc C Ganzi director, officer: CEO & President 515 SOUTH FLOWER ST, 44TH FLOOR, LOS ANGELES CA 90071
David Tolley director C/O THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154
Jacky Wu officer: CFO & Treasurer 515 SOUTH FLOWER ST, 44TH FLOOR, LOS ANGELES CA 90071
Sonia Kim officer: Chief Accounting Officer 515 SOUTH FLOWER ST, 44TH FL, C/O COLONY CAPITAL, INC., LOS ANGELES CA 90071
Shaka Rasheed director DIGITALBRIDGE GROUP, INC., 750 PARK OF COMMERCE DRIVE, SUITE 210, BOCA RATON FL 33487
Carter J Braxton Ii director C/O T-MOBILE US, INC., 12920 SE 38TH STREET, BELLEVUE WA 98006
Gregory James Mccray director 422 HANDEL COURT, WHEATON IL 60187
Mark M. Hedstrom officer: Chief Operating Officer C/O COLONY NORTHSTAR, INC., 515 S. FLOWER ST., 44TH FLOOR, LOS ANGELES CA 90071
Ronald M. Sanders officer: Chief Legal Officer C/O COLONY NORTHSTAR, INC., 515 S. FLOWER ST., 44TH FLOOR, LOS ANGELES CA 90071
Jeannie Diefenderfer director C/O MRV COMMUNICATIONS, INC., 20415 NORDHOFF STREET, CHATSWORTH CA 91311
Craig M Hatkoff director ONE WEST 72ND STREET, NEWYORK NY 10023