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BTWNU (Bridgetown Holdings) ROIC % : -7.13% (As of Jun. 2023)


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What is Bridgetown Holdings ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Bridgetown Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2023 was -7.13%.

As of today (2024-12-14), Bridgetown Holdings's WACC % is 10.07%. Bridgetown Holdings's ROIC % is -1.87% (calculated using TTM income statement data). Bridgetown Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Bridgetown Holdings ROIC % Historical Data

The historical data trend for Bridgetown Holdings'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.

* Premium members only.

Bridgetown Holdings ROIC % Chart

Bridgetown Holdings Annual Data
Trend Dec20 Dec21 Dec22
ROIC %
- -0.66 -0.45

Bridgetown Holdings Quarterly Data
Jul20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.31 -0.28 -0.49 -6.62 -7.13

Competitive Comparison of Bridgetown Holdings's ROIC %

For the Shell Companies subindustry, Bridgetown Holdings'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.


Bridgetown Holdings's ROIC % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Bridgetown Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where Bridgetown Holdings's ROIC % falls into.



Bridgetown Holdings ROIC % Calculation

Bridgetown Holdings's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2022 is calculated as:

ROIC % (A: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2021 ) + Invested Capital (A: Dec. 2022 ))/ count )
=-1.701 * ( 1 - 0% )/( (596.25 + 153.663)/ 2 )
=-1.701/374.9565
=-0.45 %

where

Bridgetown Holdings's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2023 is calculated as:

ROIC % (Q: Jun. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2023 ) + Invested Capital (Q: Jun. 2023 ))/ count )
=-11.096 * ( 1 - 0% )/( (154.83 + 156.227)/ 2 )
=-11.096/155.5285
=-7.13 %

where

Note: The Operating Income data used here is four times the quarterly (Jun. 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.


Bridgetown Holdings  (NAS:BTWNU) 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, Bridgetown Holdings's WACC % is 10.07%. Bridgetown Holdings's ROIC % is -1.87% (calculated using TTM income statement data).


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.


Bridgetown Holdings ROIC % Related Terms

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Bridgetown Holdings Business Description

Traded in Other Exchanges
N/A
Address
c/o 38th Floor Champion Tower, 3 Garden Road, Central, Hong Kong, HKG
Bridgetown Holdings Ltd is a blank check company formed for the purpose of effecting an initial business combination.
Executives
Bridgetown Llc/cayman 10 percent owner 38/F CHAMPION TOWER, HONG KONG F4 000000
Samuel H. Altman director 29 DORLAND STREET, SAN FRANCISCO CA 94110
John R Hass director C/O JHW PAN ASIA STRATEGIES FUND, LLC, 711 FIFTH AVENUE, SUITE 410, NEW YORK NY 10022
Daniel Wong director, 10 percent owner, officer: CEO and CFO 3 GARDEN ROAD, CENTRAL, HONG KONG F4 000000
In Joon Hwang director 3 GARDEN ROAD, CENTRAL, HONG KONG F4 000000
Matthew Danzeisen director, 10 percent owner, officer: Chairman of the BOD C/O 38/F CHAMPION TOWER, 3 GARDEN ROAD, HONG KONG F4 000000