CyberArk Software (CyberArk Software) ROIC % : -0.77% (As of Dec. 2023)

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What is CyberArk Software 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 %. CyberArk Software's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -0.77%.

As of today (2024-04-29), CyberArk Software's WACC % is 8.77%. CyberArk Software's ROIC % is -9.69% (calculated using TTM income statement data). CyberArk Software earns returns that do not match up to its cost of capital. It will destroy value as it grows.

CyberArk Software ROIC % Historical Data

The historical data trend for CyberArk Software'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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CyberArk Software ROIC % Chart

CyberArk Software Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

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16.20

16.47

-9.25

-14.89

-8.48

CyberArk Software Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															-12.50	-16.15	-12.99	-9.78	-0.77

Competitive Comparison of CyberArk Software's ROIC %

For the Software - Infrastructure subindustry, CyberArk Software'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.

CyberArk Software's ROIC % Distribution in the Software Industry

For the Software industry and Technology sector, CyberArk Software's ROIC % distribution charts can be found below:

* The bar in red indicates where CyberArk Software's ROIC % falls into.

CyberArk Software ROIC % Calculation

CyberArk Software'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 )
=	-116.472 * ( 1 - -5.13% )	/	( (1071.086	+	1816.007)	/ 2 )
=	-122.4470136	/	1443.5465
=	-8.48 %

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	))
=	1819.401	-	103.206	-	( 954.282	-	max(0, 452.472	-	1097.581	+	954.282	))
=	1071.086

	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	))
=	2022.208	-	119.388	-	( 993.421	-	max(0, 1124.63	-	1211.443	+	993.421	))
=	1816.007

CyberArk Software's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-18.844 * ( 1 - 38.93% )	/	( (1170.661	+	1816.007)	/ 2 )
=	-11.5080308	/	1493.334
=	-0.77 %

where

	Invested Capital		(Q: Sep. 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	))
=	1864.866	-	116.396	-	( 906.196	-	max(0, 473.678	-	1051.487	+	906.196	))
=	1170.661

	Invested Capital		(Q: 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	))
=	2022.208	-	119.388	-	( 993.421	-	max(0, 1124.63	-	1211.443	+	993.421	))
=	1816.007

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

CyberArk Software (NAS:CYBR) 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, CyberArk Software's WACC % is 8.77%. CyberArk Software's ROIC % is -9.69% (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.

CyberArk Software ROIC % Related Terms

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CyberArk Software (CyberArk Software) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » CyberArk Software Ltd (NAS:CYBR) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

CYBR:Mexico CYB:Germany CYB:Germany

Address

9 Hapsagot Street, Park Ofer B, P.O. Box 3143, Petach Tikva, ISR, 4951040

Website

https://www.cyberark.com

CyberArk Software Ltd provides Information technology security solutions to protect data, infrastructure, and assets across the enterprise. The company software solutions focused on protecting privileged accounts, credentials, and secrets. Its products and services include Enterprise Password Vault, Privileged Session Manager, Privileged Threat Analytics, CyberArk Privilege Cloud. The company provides a solution on Audit and Compliance, Security and Risk Management, Industry Solutions. Geographically, it generates maximum revenue from the United States and also has a presence in the United Kingdom; Europe, the Middle East and Africa and Other countries.