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MSDAU (MSD Acquisition) ROIC % : -0.14% (As of Dec. 2022)


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What is MSD Acquisition 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 %. MSD Acquisition's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2022 was -0.14%.

As of today (2024-12-14), MSD Acquisition's WACC % is 9.87%. MSD Acquisition's ROIC % is -0.15% (calculated using TTM income statement data). MSD Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.


MSD Acquisition ROIC % Historical Data

The historical data trend for MSD Acquisition'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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MSD Acquisition ROIC % Chart

MSD Acquisition Annual Data
Trend Dec21 Dec22
ROIC %
- -0.15

MSD Acquisition Quarterly Data
Jan21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
ROIC % Get a 7-Day Free Trial - -0.18 -0.15 -0.14 -0.14

Competitive Comparison of MSD Acquisition's ROIC %

For the Shell Companies subindustry, MSD Acquisition'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.


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

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

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



MSD Acquisition ROIC % Calculation

MSD Acquisition'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 )
=-0.891 * ( 1 - 0% )/( (575.53 + 583.436)/ 2 )
=-0.891/579.483
=-0.15 %

where

MSD Acquisition'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 )
=-0.836 * ( 1 - 0% )/( (578.703 + 583.436)/ 2 )
=-0.836/581.0695
=-0.14 %

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.


MSD Acquisition  (NAS:MSDAU) 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, MSD Acquisition's WACC % is 9.87%. MSD Acquisition's ROIC % is -0.15% (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.


MSD Acquisition ROIC % Related Terms

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MSD Acquisition Business Description

Traded in Other Exchanges
N/A
Address
One Vanderbilt Avenue, 26th Floor, New York, NY, USA, 10017
MSD Acquisition Corp is a blank check company.
Executives
Allen Shim director C/O SLACK TECHNOLOGIES, INC., 500 HOWARD STREET, SAN FRANCISCO CA 94105
James Breyer director ACCEL PARTNERS, 428 UNIVERSITY AVE, PALO ALTO CA 94301
Edith W Cooper director C/O ETSY, INC., 117 ADAMS STREET, BROOKLYN NY 11249
Barry Mccarthy director 100 WINCHESTER CIRCLE, LOS GATOS CA 95032
John Phelan director C/O MSD CAPITAL, 780 THIRD AVE 43RD FL, NEW YORK NY 10017
John Cardoso officer: Chief Financial Officer 645 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10022
Msd Sponsor Holdings, Llc 10 percent owner 645 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10022
Gregg Lemkau director, officer: Chief Executive Officer 645 FIFTH AVENUE, 21ST FLOOR, NEW YORK NY 10022