Oaktree Capital Group LLC (Oaktree Capital Group LLC) ROIC % : -2.09% (As of Sep. 2019)

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What is Oaktree Capital Group LLC 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 %. Oaktree Capital Group LLC's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2019 was -2.09%.

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

Oaktree Capital Group LLC ROIC % Historical Data

The historical data trend for Oaktree Capital Group LLC'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.

Oaktree Capital Group LLC ROIC % Chart

Oaktree Capital Group LLC Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

ROIC %

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-1.66

-1.56

1.18

4.99

4.39

Oaktree Capital Group LLC Quarterly Data
	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19
ROIC %	Get a 7-Day Free Trial															2.42	9.79	1.26	2.05	-2.09

Competitive Comparison of Oaktree Capital Group LLC's ROIC %

For the Asset Management subindustry, Oaktree Capital Group LLC'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.

Oaktree Capital Group LLC's ROIC % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Oaktree Capital Group LLC's ROIC % distribution charts can be found below:

* The bar in red indicates where Oaktree Capital Group LLC's ROIC % falls into.

Oaktree Capital Group LLC ROIC % Calculation

Oaktree Capital Group LLC's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2018 is calculated as:

	ROIC % (A: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2017 )	+	Invested Capital (A: Dec. 2018 ))	/ count )
=	385.508 * ( 1 - 5.06% )	/	( (7713.474	+	8944.699)	/ 2 )
=	366.0012952	/	8329.0865
=	4.39 %

where

	Invested Capital		(A: Dec. 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	))
=	9014.796	-	942.96	-	( 1136.067	-	max(0, 1217.944	-	1576.306	+	1136.067	))
=	7713.474

	Invested Capital		(A: Dec. 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	))
=	10432.178	-	803.153	-	( 1378.258	-	max(0, 1241.119	-	1925.445	+	1378.258	))
=	8944.699

Oaktree Capital Group LLC's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2019 is calculated as:

	ROIC % (Q: Sep. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2019 )	+	Invested Capital (Q: Sep. 2019 ))	/ count )
=	-161.16 * ( 1 - -29.8% )	/	( (9244.658	+	10730.861)	/ 2 )
=	-209.18568	/	9987.7595
=	-2.09 %

where

	Invested Capital		(Q: Jun. 2019 )
=	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	))
=	10679.021	-	775.517	-	( 1490.085	-	max(0, 1059.029	-	1717.875	+	1490.085	))
=	9244.658

	Invested Capital		(Q: Sep. 2019 )
=	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	))
=	11739.195	-	880.176	-	( 996.023	-	max(0, 1125.354	-	1253.512	+	996.023	))
=	10730.861

Note: The Operating Income data used here is four times the quarterly (Sep. 2019) data.

Oaktree Capital Group LLC (NYSE:OAK) 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, Oaktree Capital Group LLC's WACC % is 0.00%. Oaktree Capital Group LLC'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.

Oaktree Capital Group LLC ROIC % Related Terms

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Oaktree Capital Group LLC (Oaktree Capital Group LLC) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Oaktree Capital Group LLC (NYSE:OAK) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

OAKpB.PFD:USA OAKpA.PFD:USA

Address

333 South Grand Avenue, 28th Floor, Los Angeles, CA, USA, 90071

Website

https://www.oaktreecapital.com

Oaktree Capital Group LLC is an alternative asset manager involved in investing in credit, real assets, private equity, and listed equities. It operates into one segment namely the Investment management business which consists of the services that it provides to clients. It operates in the United States where it generates the majority of its revenue.

Executives

Steven J Gilbert	director	540 MADISON AVE, 40TH FL, NEW YORK NY 10022
Justin B. Beber	director	C/O BROOKFIELD ASSET MANAGEMENT INC., BROOKFIELD PLACE, 181 BAY ST., STE. 300, TORONTO A6 M5J 2T3
Bruce Flatt	director	C/O BROOKFIELD ASSET MANAGEMENT INC., 181 BAY STREET, P.O. BOX 762, TORONTO A6 M5J2T3
Bruce A Karsh	director, officer: See Remarks	C/O OAKTREE CAPITAL MANAGEMENT, L.P., 333 S. GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Daniel D Levin	officer: See Remarks	333 S. GRAND AVENUE, 28 TH FLOOR, LOS ANGELES CA 90071
Larry W Keele	director	C/O OAKTREE CAPITAL MANAGEMENT, L.P., 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Wayne G Pierson	director	C/O OAKTREE CAPITAL MANAGEMENT, L.P., 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Todd E Molz	officer: See Remarks	C/O OAKTREE CAPITAL MANAGEMENT, L.P., 333 SOUTH GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Howard S Marks	director, officer: Co-Chairman	C/O OAKTREE CAPITAL MANAGEMENT, 333 SOUTH GRAND 28TH FLOOR, LOS ANGELES CA 90071
Sheldon M Stone	director, officer: Principal	C/O OAKTREE CAPITAL MANAGEMENT, 333 SOUTH GRAND 28TH FLOOR, LOS ANGELES CA 90071
David Richard Masson	director	333 S GRAND AVENUE 28TH FL, LOS ANGELES CA 90071
Robert E Denham	director	MUNGER, TOLLES & OLSON LLP, 355 S. GRAND AVENUE, 35TH FLOOR, LOS ANGELES CA 90071
John Frank	director, officer: Vice Chairman	C/O OAKTREE CAPITAL MANAGEMENT, 333 SOUTH GRAND 28TH FLOOR, LOS ANGELES CA 90071
Jay S Wintrob	director, officer: Chief Executive Officer	333 S. GRAND AVENUE, 28TH FLOOR, LOS ANGELES CA 90071
Marna C Whittington	director	2959 BARLEY MILL ROAD, YORKLYN DE 19736