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HIPO (Hippo Holdings) ROIC % : 0.00% (As of Sep. 2024)


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What is Hippo 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 %. Hippo Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 0.00%.

As of today (2025-03-02), Hippo Holdings's WACC % is 16.16%. Hippo Holdings's ROIC % is 0.00% (calculated using TTM income statement data). Hippo Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Hippo Holdings ROIC % Historical Data

The historical data trend for Hippo 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.

Hippo Holdings ROIC % Chart

Hippo Holdings Annual Data
Trend Dec20 Dec21 Dec22 Dec23
ROIC %
-26.84 -30.10 - -

Hippo Holdings Quarterly Data
Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

Competitive Comparison of Hippo Holdings's ROIC %

For the Insurance - Property & Casualty subindustry, Hippo 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.


Hippo Holdings's ROIC % Distribution in the Insurance Industry

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

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



Hippo Holdings ROIC % Calculation

Hippo Holdings'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
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (A: Dec. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=0 * ( 1 - -0.19% )/( (1145.585 + 1106.685)/ 2 )
=0/1126.135
=0.00 %

where

Invested Capital(A: Dec. 2022 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=1568.9 - 234.8 - ( 194.5 - 5% * 119.7 )
=1145.585

Invested Capital(A: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=1524.7 - 286.4 - ( 142.1 - 5% * 209.7 )
=1106.685

Hippo Holdings'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
=EBIT * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=0 * ( 1 - 0% )/( (1064.98 + 1073.375)/ 2 )
=0/1069.1775
=0.00 %

where

Invested Capital(Q: Jun. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=1510.3 - 273.9 - ( 175.9 - 5% * 89.6 )
=1064.98

Invested Capital(Q: Sep. 2024 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Balance Sheet Cash And Cash Equivalents - 5% * Revenue )
=1545.4 - 285.6 - ( 191.2 - 5% * 95.5 )
=1073.375

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


Hippo Holdings  (NYSE:HIPO) 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, Hippo Holdings's WACC % is 16.16%. Hippo Holdings'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.


Hippo Holdings ROIC % Related Terms

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Hippo Holdings Business Description

Traded in Other Exchanges
N/A
Address
150 Forest Avenue, Palo Alto, CA, USA, 94301
Hippo Holdings Inc is a home insurance group that created a new standard of care and protection for homeowners. It provides insurance for computers, home offices, electronics, appliances, water backup, and service line coverage, among others. It has three reportable segments Services segment earns fees and commission income without assuming underwriting risk or need for reinsurance, Insurance-as-a-Service managed through the Company's subsidiary Spinnaker is a platform to support third-party MGAs, and the Hippo Home Insurance Program engaged in homeowners insurance business. It generates the majority of its revenue from the Insurance-as-a-Service segment.
Executives
Assaf Wand director, officer: See Remarks C/O HIPPO HOLDINGS INC., 150 FOREST AVENUE, PALO ALTO CA 94301
Stewart Ellis officer: Chief Financial Officer C/O HIPPO HOLDINGS INC., 150 FOREST AVENUE, PALO ALTO CA 94301
Richard Mccathron director, officer: President 8240 N. MOPAC EXPRESSWAY, #215, AUSTIN TX 78759
Anirudh Badia officer: Chief Accounting Officer 150 FOREST AVENUE, PALO ALTO CA 94301
Yuval Harry officer: Chief Revenue Officer 150 FOREST AVENUE, PALO ALTO CA 95624
John Drake Nichols director C/O HIPPO HOLDINGS INC., 150 FOREST AVENUE, PALO ALTO CA 94301
Mark Schaaf director 150 FOREST AVENUE, PALO ALTO CA 94301
Christopher Donahue officer: General Manager, MGA & CUO 150 FOREST AVENUE, PALO ALTO CA 94301
Noah Knauf director C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
Sam Landman director C/O HIPPO HOLDINGS INC., 150 FOREST AVENUE, PALO ALTO CA 94301
Sandra S Wijnberg director 100 E. PRATT STREET, BA-1320, BALTIMORE MD 21202
Eric Feder director C/O FIFTH WALL ACQUISITION CORP. II, 6060 CENTER DRIVE, 10TH FLOOR, LOS ANGELES CA 90045
Ran Harpaz officer: Chief Technology Officer C/O HIPPO HOLDINGS INC., 150 FOREST AVENUE, PALO ALTO CA 94301
Aviad Pinkovezky officer: Chief Product Officer C/O HIPPO HOLDINGS INC., 150 FOREST AVENUE, PALO ALTO CA 94301
Amy Errett director C/O HIPPO HOLDINGS INC., 150 FOREST AVENUE, PALO ALTO CA 94301