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GXIIU (GX Acquisition II) ROIC % : -2.96% (As of Dec. 2022)


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What is GX Acquisition II 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 %. GX Acquisition II's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2022 was -2.96%.

As of today (2024-12-13), GX Acquisition II's WACC % is 9.86%. GX Acquisition II's ROIC % is -2.73% (calculated using TTM income statement data). GX Acquisition II earns returns that do not match up to its cost of capital. It will destroy value as it grows.


GX Acquisition II ROIC % Historical Data

The historical data trend for GX Acquisition II'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.

GX Acquisition II ROIC % Chart

GX Acquisition II Annual Data
Trend Dec20 Dec21 Dec22
ROIC %
- -0.93 -2.72

GX Acquisition II Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
ROIC % Get a 7-Day Free Trial Premium Member Only -0.80 -1.05 -0.54 -6.15 -2.96

Competitive Comparison of GX Acquisition II's ROIC %

For the Shell Companies subindustry, GX Acquisition II'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.


GX Acquisition II's ROIC % Distribution in the Diversified Financial Services Industry

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

* The bar in red indicates where GX Acquisition II's ROIC % falls into.



GX Acquisition II ROIC % Calculation

GX Acquisition II'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 )
=-7.357 * ( 1 - -11.73% )/( (300.017 + 303.413)/ 2 )
=-8.2199761/301.715
=-2.72 %

where

GX Acquisition II's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2022 is calculated as:

ROIC % (Q: Dec. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2022 ) + Invested Capital (Q: Dec. 2022 ))/ count )
=-8.496 * ( 1 - -5.14% )/( (300.912 + 303.413)/ 2 )
=-8.9326944/302.1625
=-2.96 %

where

Note: The Operating Income data used here is four times the quarterly (Dec. 2022) 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.


GX Acquisition II  (NAS:GXIIU) 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, GX Acquisition II's WACC % is 9.86%. GX Acquisition II's ROIC % is -2.73% (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.


GX Acquisition II ROIC % Related Terms

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GX Acquisition II Business Description

Traded in Other Exchanges
N/A
Address
1325 Avenue of the Americas, 28th Floor, New York, NY, USA, 10019
Website
GX Acquisition Corp II is a blank check company.
Executives
Plc Barclays 10 percent owner 1 CHURCHILL PLACE, CANARY WHARF, LONDON X0 E14 5HP
Marc Mazur director 31 WEST 52ND ST. 17TH FLOOR, NEW YORK NY 10019
Dean C Kehler director, 10 percent owner, officer: Co-CEO and Co-Chairman C/O TRIMARAN CAPITAL PARTNERS, 622 THIRD AVENUE, 35TH FLOOR, NEW YORK NY 10017
Jay R Bloom director, 10 percent owner, officer: Co-CEO and Co-Chairman C/O TRIMARAN CAPITAL PARTNERS, 622 THIRD AVENUE, 35TH FLOOR, NEW YORK NY 10017
Andrea J. Kellett officer: Chief Financial Officer 1325 AVENUE OF THE AMERICAS, 25TH FLOOR, NEW YORK NY 10019
Michael G Maselli officer: President 1325 AVENUE OF THE AMERICAS, 25TH FLOOR, NEW YORK NY 10019
Hillel Weinberger director 1325 AVENUE OF THE AMERICAS, 25TH FLOOR, NEW YORK NY 10019
James W Harpel director C/O PALM BEACH CAPITAL, 525 SOUTH FLAGLER DRIVE, SUITE 201, WEST PALM BEACH FL 33401
Gx Sponsor Ii Llc 10 percent owner 1325 AVENUE OF THE AMERICAS, 25TH FLOOR, NEW YORK NY 10019
Arthur D. Baer officer: Vice President 30 WEST 63RD. STREET, APT. #3J, NEW YORK NY 10023
Jordan S. Bloom officer: Vice President 1325 AVENUE OF THE AMERICAS, 25TH FLOOR, NEW YORK NY 10019