GENI (Genius Sports) ROIC % : -2.73% (As of Sep. 2024)

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What is Genius Sports 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 %. Genius Sports's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -2.73%.

As of today (2024-12-14), Genius Sports's WACC % is 17.30%. Genius Sports's ROIC % is -15.08% (calculated using TTM income statement data). Genius Sports earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Genius Sports ROIC % Historical Data

The historical data trend for Genius Sports'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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Genius Sports ROIC % Chart

Genius Sports Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

-8.80

-6.03

-109.61

-29.25

-12.59

Genius Sports Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROIC %	Get a 7-Day Free Trial															-5.92	-22.77	-16.99	-12.96	-2.73

Competitive Comparison of Genius Sports's ROIC %

For the Internet Content & Information subindustry, Genius Sports'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.

Genius Sports's ROIC % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Genius Sports's ROIC % distribution charts can be found below:

* The bar in red indicates where Genius Sports's ROIC % falls into.

Genius Sports ROIC % Calculation

Genius Sports'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 )
=	-71.664 * ( 1 - -6.41% )	/	( (614.216	+	597.106)	/ 2 )
=	-76.2576624	/	605.661
=	-12.59 %

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	))
=	773.337	-	93.744	-	( 122.715	-	max(0, 171.14	-	236.517	+	122.715	))
=	614.216

	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	))
=	775.724	-	116.751	-	( 100.331	-	max(0, 182.914	-	244.781	+	100.331	))
=	597.106

Genius Sports's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROIC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-22.496 * ( 1 - 30.72% )	/	( (555.254	+	586.072)	/ 2 )
=	-15.5852288	/	570.663
=	-2.73 %

where

	Invested Capital		(Q: Jun. 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	))
=	715.988	-	93.016	-	( 67.718	-	max(0, 144.521	-	222.533	+	67.718	))
=	555.254

	Invested Capital		(Q: Sep. 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	))
=	724.878	-	96.492	-	( 42.314	-	max(0, 149.094	-	224.381	+	42.314	))
=	586.072

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

Genius Sports (NYSE:GENI) 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, Genius Sports's WACC % is 17.30%. Genius Sports's ROIC % is -15.08% (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.

Genius Sports ROIC % Related Terms

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Genius Sports Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Genius Sports Ltd (NYSE:GENI) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

27 Soho Square, 1st Floor, London, GBR, W1D 3QR

Website

https://www.geniussports.com

Genius Sports Ltd is a B2B provider of scalable, technology-led products and services to the sports, sports betting, and sports media industries. Its services are organized into three key product areas including Sports Technology and Services; Betting Technology, Content and Services; and Media Technology, Content and Services. All of its products are powered by proprietary technology and robust data infrastructure. It generates maximum revenue from the Betting Technology, Content and Services division. Geographically, the company derives a majority of its revenue from Europe.