Dell-VMWare Tracking Stock (Dell-VMWare Tracking Stock) ROIC % : 8.09% (As of Oct. 2018)

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What is Dell-VMWare Tracking Stock 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 %. Dell-VMWare Tracking Stock's annualized return on invested capital (ROIC %) for the quarter that ended in Oct. 2018 was 8.09%.

As of today (2024-05-05), Dell-VMWare Tracking Stock's WACC % is 0.00%. Dell-VMWare Tracking Stock's ROIC % is 0.00% (calculated using TTM income statement data). Dell-VMWare Tracking Stock earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Dell-VMWare Tracking Stock ROIC % Historical Data

The historical data trend for Dell-VMWare Tracking Stock'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.

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Dell-VMWare Tracking Stock ROIC % Chart

Dell-VMWare Tracking Stock Annual Data

Trend

Jan17

Jan18

ROIC %

2.89

Dell-VMWare Tracking Stock Quarterly Data
	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18	Apr18	Jul18	Oct18
ROIC %	Get a 7-Day Free Trial				8.53	-9.14	5.74	7.47	8.09

Competitive Comparison of Dell-VMWare Tracking Stock's ROIC %

For the Software - Infrastructure subindustry, Dell-VMWare Tracking Stock'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.

Dell-VMWare Tracking Stock's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, Dell-VMWare Tracking Stock's ROIC % distribution charts can be found below:

* The bar in red indicates where Dell-VMWare Tracking Stock's ROIC % falls into.

Dell-VMWare Tracking Stock ROIC % Calculation

Dell-VMWare Tracking Stock's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jan. 2018 is calculated as:

	ROIC % (A: Jan. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2017 )	+	Invested Capital (A: Jan. 2018 ))	/ count )
=	1689 * ( 1 - 68.35% )	/	( (16414	+	20622)	/ 2 )
=	534.5685	/	18518
=	2.89 %

where

	Invested Capital		(A: Jan. 2017 )
=	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	))
=	16414	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	16414

	Invested Capital		(A: Jan. 2018 )
=	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	))
=	20622	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	20622

Dell-VMWare Tracking Stock's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Oct. 2018 is calculated as:

	ROIC % (Q: Oct. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jul. 2018 )	+	Invested Capital (Q: Oct. 2018 ))	/ count )
=	1980 * ( 1 - 3.19% )	/	( (23409	+	23962)	/ 2 )
=	1916.838	/	23685.5
=	8.09 %

where

	Invested Capital		(Q: Jul. 2018 )
=	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	))
=	23409	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	23409

	Invested Capital		(Q: Oct. 2018 )
=	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	))
=	23962	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	23962

Note: The Operating Income data used here is four times the quarterly (Oct. 2018) data.

Dell-VMWare Tracking Stock (NYSE:DVMT) 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, Dell-VMWare Tracking Stock's WACC % is 0.00%. Dell-VMWare Tracking Stock's ROIC % is 0.00% (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.

Dell-VMWare Tracking Stock ROIC % Related Terms

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Dell-VMWare Tracking Stock (Dell-VMWare Tracking Stock) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Dell-VMWare Tracking Stock (NYSE:DVMT) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

https://www.delltechnologies.com

Dell-VMWare Tracking Stock was incorporated in the state of Delaware on January 31, 2013 under the name of Denali Holding Inc. It changed its name to Dell Technologies Inc. on August 25, 2016. On September 7, 2016, a merger subsidiary of Dell Technologies merged with and into EMC Corporation, with EMC Corporation surviving the merger as a wholly-owned subsidiary of Dell Technologies. The company has issued a tracking stock to track the performance of a portion of Dell Technologies' economic interest in the VMware business. It is an information technology company. The company offers virtualization and cloud infrastructure solutions, which enable organizations to manage IT resources across complex multi-cloud, multi-device environments.

Executives

Richard J Rothberg	officer: General Counsel & Secretary	ONE DELL WAY, ROUND ROCK TX 78682
William F Scannell	officer: President, Global Sales	EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Thomas W Sweet	officer: Chief Financial Officer	ONE DELL WAY, ROUND ROCK TX 78682
Howard D Elias	officer: President, Services & Digital	C/O EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Ellen Jamison Kullman	director	UNITED TECHNOLOGIES CORP, 10 FARM SPRINGS ROAD, FARMINGTON CT 06032
William D Green	director	C/O ACCENTURE, 161 N CLARK STREET, CHICAGO IL 60601
Radakovich Lynn Vojvodich	director	C/O BOOKING HOLDINGS INC., 800 CONNECTICUT AVENUE, NORWALK CT 06854
David W Dorman	director	CVS HEALTH., ONE CVS DRIVE, WOONSOCKET RI 02895
Jeffrey W Clarke	officer: COO & Vice Chairman	C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682
Allison Dew	officer: Chief Marketing Officer	C/O DELL TECHNOLOGIES INC., ONE DELL WAY, ROUND ROCK TX 78682
Steven H Price	officer: Chief Human Resources Officer	ONE DELL WAY, ROUND ROCK TX 78682
Karen H Quintos	officer: Chief Customer Officer	ONE DELL WAY, ROUND ROCK TX 78682
Rory P Read	officer: Chief Operating Executive	ONE DELL WAY, ROUND ROCK TX 78682
Michael S Dell	director, 10 percent owner, officer: Chief Executive Officer	C/O DELL INC., ONE DELL WAY, ROUND ROCK TX 78682-2244
Brunilda Rios	officer: Chief Accounting Officer	C/O DELL TECHNOLOGIES INC., ONE DELL WAY, ROUND ROCK TX 78682