SPAI (Safe Pro Group) ROIC % : -472.66% (As of Sep. 2024)

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What is Safe Pro Group 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 %. Safe Pro Group's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -472.66%.

As of today (2025-03-15), Safe Pro Group's WACC % is 10.82%. Safe Pro Group's ROIC % is -327.96% (calculated using TTM income statement data). Safe Pro Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Safe Pro Group ROIC % Historical Data

The historical data trend for Safe Pro Group'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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Safe Pro Group ROIC % Chart

Safe Pro Group Annual Data

Trend

Dec22

Dec23

ROIC %

-23.67

-253.19

Safe Pro Group Quarterly Data
	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROIC %	Get a 7-Day Free Trial			-	-618.27	-135.54	-124.28	-472.66

Competitive Comparison of Safe Pro Group's ROIC %

For the Aerospace & Defense subindustry, Safe Pro Group'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.

Safe Pro Group's ROIC % Distribution in the Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Safe Pro Group's ROIC % distribution charts can be found below:

* The bar in red indicates where Safe Pro Group's ROIC % falls into.

Safe Pro Group ROIC % Calculation

Safe Pro Group'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
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-6.307 * ( 1 - 0% )	/	( (2.125	+	2.857)	/ 2 )
=	-6.307	/	2.491
=	-253.19 %

where

	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	))
=	4.239	-	1.111	-	( 1.752	-	max(0, 1.352	-	2.355	+	1.752	))
=	2.125

	Invested Capital		(A: Dec. 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	))
=	3.43	-	0.716	-	( 0.703	-	max(0, 1.417	-	1.274	+	0.703	))
=	2.857

Safe Pro Group'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
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-14.168 * ( 1 - 0% )	/	( (3.682	+	2.313)	/ 2 )
=	-14.168	/	2.9975
=	-472.66 %

where

	Invested Capital		(Q: Jun. 2024 )
=	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	))
=	3.018	-	0.839	-	( 0.176	-	max(0, 2.279	-	0.776	+	0.176	))
=	3.682

	Invested Capital		(Q: Sep. 2024 )
=	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	))
=	5.477	-	0.863	-	( 2.335	-	max(0, 1.049	-	3.35	+	2.335	))
=	2.313

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

Safe Pro Group (NAS:SPAI) 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, Safe Pro Group's WACC % is 10.82%. Safe Pro Group's ROIC % is -327.96% (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.

Safe Pro Group ROIC % Related Terms

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Safe Pro Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Aerospace & Defense » Safe Pro Group Inc (NAS:SPAI) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

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Address

18305 Biscayne boulevard, Suite 222, Aventura, FL, USA, 33160

Website

https://www.safeprogroup.com

Safe Pro Group Inc operates to acquire security and protection products. Its emphasis is on the development of a cloud-based ecosystem for analyzing drone imagery and data utilizing proprietary artificial intelligence (AI), machine learning, deep learning, and applied computer vision software for hyper scalable processing, analysis, and reporting. The company operated in three reportable business segments which consisted of: the business of Safe-Pro USA, the business of Airborne Response, and the business of Safe Pro AI. Key revenue is generated from Safe-Pro USA.