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Sustainable Development Acquisition I (Sustainable Development Acquisition I) ROIC % : -4.63% (As of Mar. 2023)


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What is Sustainable Development Acquisition I 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 %. Sustainable Development Acquisition I's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2023 was -4.63%.

As of today (2024-06-07), Sustainable Development Acquisition I's WACC % is 10.04%. Sustainable Development Acquisition I's ROIC % is -1.19% (calculated using TTM income statement data). Sustainable Development Acquisition I earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Sustainable Development Acquisition I ROIC % Historical Data

The historical data trend for Sustainable Development Acquisition I'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.

Sustainable Development Acquisition I ROIC % Chart

Sustainable Development Acquisition I Annual Data
Trend Dec20 Dec21 Dec22
ROIC %
- -1.73 -0.69

Sustainable Development Acquisition I Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.42 -0.58 -0.49 -0.87 -4.63

Competitive Comparison of Sustainable Development Acquisition I's ROIC %

For the Shell Companies subindustry, Sustainable Development Acquisition I'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.

Sustainable Development Acquisition I's ROIC % Distribution in the Diversified Financial Services Industry

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

* The bar in red indicates where Sustainable Development Acquisition I's ROIC % falls into.


Sustainable Development Acquisition I ROIC % Calculation

Sustainable Development Acquisition I'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 )
=-2.308 * ( 1 - 5.31% )/( (316.328 + 321.728)/ 2 )
=-2.1854452/319.028
=-0.69 %

where

Invested Capital(A: Dec. 2021 )
=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))
=317.919 - 0.781 - ( 1.014 - max(0, 0.781 - 1.591+1.014))
=316.328

Invested Capital(A: Dec. 2022 )
=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))
=321.06 - 1.405 - ( 0.319 - max(0, 2.455 - 0.382+0.319))
=321.728

Sustainable Development Acquisition I's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Mar. 2023 is calculated as:

ROIC % (Q: Mar. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2022 ) + Invested Capital (Q: Mar. 2023 ))/ count )
=-6.708 * ( 1 - -19.18% )/( (321.728 + 23.563)/ 2 )
=-7.9945944/172.6455
=-4.63 %

where

Invested Capital(Q: Dec. 2022 )
=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))
=321.06 - 1.405 - ( 0.319 - max(0, 2.455 - 0.382+0.319))
=321.728

Invested Capital(Q: Mar. 2023 )
=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))
=23.897 - 6.055 - ( 1.11 - max(0, 7.105 - 1.384+1.11))
=23.563

Note: The Operating Income data used here is four times the quarterly (Mar. 2023) 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.

Sustainable Development Acquisition I  (NAS:SDAC) 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, Sustainable Development Acquisition I's WACC % is 10.04%. Sustainable Development Acquisition I's ROIC % is -1.19% (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.

Sustainable Development Acquisition I ROIC % Related Terms

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Sustainable Development Acquisition I (Sustainable Development Acquisition I) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Sustainable Development Acquisition I Corp (NAS:SDAC) » Definitions » ROIC %
Comparable Companies
ANAC HCMA ACTD PLMI HCNE DCRD GSRM BRKH SIER TWCB GSHN PSTH XAMS:EPIC ASZ CCYC CVII KAHC DWAC IPOF PBAJ
Traded in Other Exchanges
N/A
Address
5701 Truxtun Avenue, Suite 201, Bakersfield, CA, USA, 90036
Website
https://www.waterfoodenergyspac.com
Sustainable Development Acquisition I Corp is a blank check company. It is formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
Executives
Kathleen Brown director 488 8TH AVENUE, SAN DIEGO CA 92101
Neeman Brady Nicole Elana director, officer: Chief Executive Officer 113 S. LA BREA BLVD., 3RD FLOOR, LOS ANGELES CA 90036
Annette Rodriguez director C/O SILK ROAD MEDICAL, INC., 1213 INNSBRUCK DRIVE, SUNNYVALE CA 94089
Robert A. Schultz director 113 S. LA BREA BLVD., 3RD FLOOR, LOS ANGELES CA 90036
Andrew Kassoy director 113 S. LA BREA BLVD., 3RD FLOOR, LOS ANGELES CA 90036
Eric John Techel officer: Chief Financial Officer 113 S. LA BREA BLVD., 3RD FLOOR, LOS ANGELES CA 90036