Grayscale Decentralized Finance (DeFi) Fund LLC (Grayscale Decentralized Finance (DeFi) Fund LLC) ROIC % : 176.25% (As of Mar. 2024)

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What is Grayscale Decentralized Finance (DeFi) Fund LLC 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 %. Grayscale Decentralized Finance (DeFi) Fund LLC's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2024 was 176.25%.

As of today (2024-05-25), Grayscale Decentralized Finance (DeFi) Fund LLC's WACC % is 10.43%. Grayscale Decentralized Finance (DeFi) Fund LLC's ROIC % is -23.10% (calculated using TTM income statement data). Grayscale Decentralized Finance (DeFi) Fund LLC earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Grayscale Decentralized Finance (DeFi) Fund LLC ROIC % Historical Data

The historical data trend for Grayscale Decentralized Finance (DeFi) Fund LLC'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.

Grayscale Decentralized Finance (DeFi) Fund LLC ROIC % Chart

Grayscale Decentralized Finance (DeFi) Fund LLC Annual Data

Trend

Jun22

Jun23

ROIC %

-17.14

-107.86

Grayscale Decentralized Finance (DeFi) Fund LLC Quarterly Data
	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROIC %	Get a 7-Day Free Trial					94.43	-460.87	-158.34	163.42	176.25

Competitive Comparison of Grayscale Decentralized Finance (DeFi) Fund LLC's ROIC %

For the Asset Management subindustry, Grayscale Decentralized Finance (DeFi) Fund LLC'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.

Grayscale Decentralized Finance (DeFi) Fund LLC's ROIC % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Grayscale Decentralized Finance (DeFi) Fund LLC's ROIC % distribution charts can be found below:

* The bar in red indicates where Grayscale Decentralized Finance (DeFi) Fund LLC's ROIC % falls into.

Grayscale Decentralized Finance (DeFi) Fund LLC ROIC % Calculation

Grayscale Decentralized Finance (DeFi) Fund LLC's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROIC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-3.225 * ( 1 - 0% )	/	( (2.905	+	3.075)	/ 2 )
=	-3.225	/	2.99
=	-107.86 %

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	))
=	2.905	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	2.905

	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	))
=	3.075	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	3.075

Grayscale Decentralized Finance (DeFi) Fund LLC's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROIC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	9.928 * ( 1 - 0% )	/	( (4.392	+	6.874)	/ 2 )
=	9.928	/	5.633
=	176.25 %

where

	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	))
=	4.392	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	4.392

	Invested Capital		(Q: Mar. 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	))
=	6.874	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	6.874

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

Grayscale Decentralized Finance (DeFi) Fund LLC (OTCPK:DEFG) 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, Grayscale Decentralized Finance (DeFi) Fund LLC's WACC % is 10.43%. Grayscale Decentralized Finance (DeFi) Fund LLC's ROIC % is -23.10% (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.

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Grayscale Decentralized Finance (DeFi) Fund LLC (Grayscale Decentralized Finance (DeFi) Fund LLC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Grayscale Decentralized Finance (DeFi) Fund LLC (OTCPK:DEFG) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

290 Harbor Drive, 4th Floor, Stamford, CT, USA, 06902

Website

https://www.grayscale.com

Grayscale Decentralized Finance (DeFi) Fund LLC seeks to provide investors with exposure to a selection of industry decentralized finance platforms through a market cap-weighted portfolio designed to track the CoinDesk DeFi Select Index. DeFi Fund holds the liquid digital assets that meet certain trading and custody requirements and are classified in the DeFi sector defined by CoinDesk Digital Asset Classification Standard.

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