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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Octave Intelligence's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2024 was 3.68%.
As of today (2026-07-24), Octave Intelligence's WACC % is 10.55%. Octave Intelligence's ROIC % is 3.68% (calculated using TTM income statement data).
Octave Intelligence earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Octave Intelligence (NAS:OCTV) 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, Octave Intelligence's WACC % is 10.55%. Octave Intelligence's ROIC % is 3.68% (calculated using TTM income statement data).
Octave Intelligence earns returns that do not match up to its cost of capital. It will destroy value as it grows.
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.
Octave Intelligence ROIC % Related Terms
Octave Intelligence ROIC % Historical Data
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The historical data trend for Octave Intelligence'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.
Octave Intelligence ROIC % Chart
Octave Intelligence Annual Data
Trend
Dec22
Dec23
Dec24
ROIC %
0.00
2.90
3.68
Octave Intelligence Semi-Annual Data
Dec22
Dec23
Dec24
ROIC %
0.00
2.90
3.68
OCTV vs SRAD, DAVE, LIF: ROIC % Comparison
For the Software - Application subindustry, Octave Intelligence'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.
Octave Intelligence ROIC % vs Software Industry
For the Software industry and Technology sector, Octave Intelligence's ROIC % distribution charts can be found below:
* The bar in red indicates where Octave Intelligence's ROIC % falls into.
Note:
The Operating Income data used here is one times the annual (Dec. 2024) data.
The tax rate is limited to between 0% and 100%.
* 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.
Octave Intelligence (OCTV) has a ROIC % of 3.68% as of Dec. 2024. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Octave Intelligence and its competitors.
Is Octave Intelligence's ROIC % too high?
Octave Intelligence's current ROIC % is 3.68%. The Software industry median ROIC % is 3.15. Octave Intelligence's value of 3.68% is 16.8% above this industry median. Overall, Octave Intelligence has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Octave Intelligence's ROIC % compare to SRAD and DAVE?
Octave Intelligence's ROIC % of 3.68% can be compared against companies in the Software industry. The industry median ROIC % is 3.15. Octave Intelligence's value of 3.68% is 16.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Software company?
The median ROIC % among Software companies is 3.15, based on 2,833 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Octave Intelligence's current ROIC % of 3.68% is 16.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Octave Intelligence and its competitors. For the Software industry, the median ROIC % is 3.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Octave Intelligence's current ROIC % is 3.68%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Octave Intelligence stock overvalued right now?
Octave Intelligence (OCTV) has a current ROIC % of 3.68%. The current ROIC % is 3.68% and 16.8% above the Software industry median of 3.15. Octave Intelligence's overall GF Score™ is 19/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Octave Intelligence (OCTV), the current ROIC % is 3.68% as of Dec. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Octave Intelligence PLC provides a suite of software solutions that help organizations design, build, operate, and protect their physical assets, people, and critical infrastructure. The company operates in a single business segment developing enterprise software used in design, construction, operations, and security. Geographically, it operates in Americas that includes the United States, and Other Americas (Canada, and Latin America); EMIA that includes Europe, Middle East, India, and Africa; and APAC that includes the Asia-Pacific region, excluding India. The company derives maximum revenue from Americas. Its products include: Octave Coda Spatial, Octave Alto Twin, Octave Coda, Octave Oncall, Octave Alto, Octave Imagine, Octave Oncall Dispatch, Octave Alto Lightspeed, and Others.
19GF Score
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