BSIG has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
BSIG 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 %. BrightSphere Investment Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was 24.06%.
As of today (2024-04-30), BrightSphere Investment Group's WACC % is 9.82%. BrightSphere Investment Group's ROIC % is 19.27% (calculated using TTM income statement data). BrightSphere Investment Group 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.
The historical data trend for BrightSphere Investment Group'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.
BrightSphere Investment Group Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
ROIC % | Get a 7-Day Free Trial | 18.22 | 9.53 | 14.99 | 29.14 | 18.49 |
BrightSphere Investment Group Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
ROIC % | Get a 7-Day Free Trial | 36.01 | 15.01 | 15.11 | 23.23 | 24.06 |
For the Asset Management subindustry, BrightSphere Investment Group'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 Asset Management industry and Financial Services sector, BrightSphere Investment Group's ROIC % distribution charts can be found below:
* The bar in red indicates where BrightSphere Investment Group's ROIC % falls into.
BrightSphere Investment Group's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:
ROIC % (A: Dec. 2023 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (A: Dec. 2022 ) | + | Invested Capital (A: Dec. 2023 )) | / count ) |
= | 106 * ( 1 - 30.47% ) | / | ( (374.4 | + | 422.7) | / 2 ) |
= | 73.7018 | / | 398.55 | |||
= | 18.49 % |
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 | )) |
= | 518.7 | - | 35.9 | - | ( 108.4 | - | max(0, 35.9 | - | 245.7 | + | 108.4 | )) |
= | 374.4 |
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 | )) |
= | 611.4 | - | 41.9 | - | ( 146.8 | - | max(0, 41.9 | - | 293.7 | + | 146.8 | )) |
= | 422.7 |
BrightSphere Investment Group's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:
ROIC % (Q: Dec. 2023 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Sep. 2023 ) | + | Invested Capital (Q: Dec. 2023 )) | / count ) |
= | 142.4 * ( 1 - 31.81% ) | / | ( (384.4 | + | 422.7) | / 2 ) |
= | 97.10256 | / | 403.55 | |||
= | 24.06 % |
where
Invested Capital | (Q: Sep. 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 | )) |
= | 553 | - | 25.5 | - | ( 143.1 | - | max(0, 38.5 | - | 252.8 | + | 143.1 | )) |
= | 384.4 |
Invested Capital | (Q: 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 | )) |
= | 611.4 | - | 41.9 | - | ( 146.8 | - | max(0, 41.9 | - | 293.7 | + | 146.8 | )) |
= | 422.7 |
Note: The Operating Income data used here is four times the quarterly (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.
BrightSphere Investment Group (NYSE:BSIG) 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, BrightSphere Investment Group's WACC % is 9.82%. BrightSphere Investment Group's ROIC % is 19.27% (calculated using TTM income statement data). BrightSphere Investment Group 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. BrightSphere Investment 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 %, 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 BrightSphere Investment Group's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Richard Jonathan Hart | officer: Chief Legal Officer | 200 CLARENDON STREET, 53RD FLOOR, BOSTON MA 02116 |
Christina Wiater | officer: Principal Accounting Officer | 200 CLARENDON STREET, 53RD FLOOR, BOSTON MA 02116 |
Suren Rana | director, officer: President and CEO | 245 PARK AVENUE, 40TH FLOOR, NEW YORK NY 10167 |
Paulson & Co. Inc. | 10 percent owner | 1133 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10036 |
John Paulson | director, 10 percent owner | 1133 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10036 |
Daniel K. Mahoney | officer: Head of Finance/PAO | C/O OLD MUTUAL ASSET MANAGEMENT, 200 CLARENDON STREET, BOSTON MA 02116 |
Guang Yang | director, officer: President and CEO | 850 THIRD AVENUE, 16TH FLOOR, NEW YORK NY 10022 |
Robert J Chersi | director | C/O OMAM INC, 200 CLARENDON STREET, 53RD FLOOR, BOSTON MA 02116 |
Maliz E Beams | director | C/O PORT FINANCIAL CORP, 1380 SOLDIERS FIELD RD, BRIGHTON MA 02135 |
Barbara Trebbi | director | C/O OMAM INC., 200 CLARENDON STREET, 53RD FLOOR, BOSTON MA 02116 |
Reginald Love | director | C/O BRIGHTSPHERE INC., 200 CLARENDON STREET, BOSTON MA 02116 |
Andrew D Kim | director | 1133 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10036 |
From GuruFocus
By Business Wire Business Wire • 10-28-2021
By Business Wire Business Wire • 07-13-2022
By Business Wire Business Wire • 04-14-2022
By Business Wire Business Wire • 02-02-2023
By Business Wire Business Wire • 12-09-2021
By Business Wire Business Wire • 05-05-2022
By Business Wire Business Wire • 11-03-2022
By Business Wire Business Wire • 05-04-2023
By Business Wire Business Wire • 01-13-2023
By Business Wire • 07-13-2023
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.