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DRKTY (Darktrace) ROC % : 16.92% (As of Dec. 2023)


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What is Darktrace 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 %. Darktrace's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was 16.92%.

As of today (2024-12-14), Darktrace's WACC % is 10.17%. Darktrace's ROC % is 18.63% (calculated using TTM income statement data). Darktrace 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.


Darktrace ROC % Historical Data

The historical data trend for Darktrace'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.

Darktrace ROC % Chart

Darktrace Annual Data
Trend Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
ROC %
Get a 7-Day Free Trial -22.07 -12.52 -12.61 0.91 9.90

Darktrace Semi-Annual Data
Jun18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only 3.76 27.28 0.52 19.34 16.92

Darktrace ROC % Calculation

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

ROC % (A: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2022 ) + Invested Capital (A: Jun. 2023 ))/ count )
=38.639 * ( 1 - -43.68% )/( (512.862 + 608.451)/ 2 )
=55.5165152/560.6565
=9.90 %

where

Invested Capital(A: 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))
=729.361 - 26.705 - ( 390.623 - max(0, 323.773 - 513.567+390.623))
=512.862

Invested Capital(A: Jun. 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))
=751.865 - 28.214 - ( 356.986 - max(0, 405.437 - 520.637+356.986))
=608.451

Darktrace's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=92.002 * ( 1 - -4.09% )/( (608.451 + 523.838)/ 2 )
=95.7648818/566.1445
=16.92 %

where

Invested Capital(Q: Jun. 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))
=751.865 - 28.214 - ( 356.986 - max(0, 405.437 - 520.637+356.986))
=608.451

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) 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.


Darktrace  (OTCPK:DRKTY) 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, Darktrace's WACC % is 10.17%. Darktrace's ROC % is 18.63% (calculated using TTM income statement data). Darktrace 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.


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.


Darktrace ROC % Related Terms

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Darktrace Business Description

Traded in Other Exchanges
N/A
Address
Saint John’s Innovation Park, Cowley Road, Maurice Wilkes Building, Cambridge, GBR, CB4 0DS
Darktrace PLC is a provider of AI for the enterprise, with the first at-scale deployment of AI in cybersecurity. It is a pioneer of self-learning AI and is at the forefront of autonomous response technology. The Group's platform uses machine learning and AI algorithms to neutralize cyber threats across diverse digital estates, including the cloud and networks, IoT, and industrial control systems. Geographically, it derives a majority of revenue from the USA and Canada and also has a presence in the United Kingdom; Europe, and Rest of World.