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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 %. Procore Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -10.71%.
As of today (2024-04-28), Procore Technologies's WACC % is 10.63%. Procore Technologies's ROIC % is -15.35% (calculated using TTM income statement data). Procore Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Procore Technologies'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.
Procore Technologies Annual Data | ||||||||||||||||
Trend | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||
ROIC % | Get a 7-Day Free Trial | -22.03 | -10.82 | -28.65 | -22.21 | -15.37 |
Procore Technologies 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 | -22.25 | -19.90 | -16.69 | -14.64 | -10.71 |
For the Software - Application subindustry, Procore Technologies'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.
For the Software industry and Technology sector, Procore Technologies's ROIC % distribution charts can be found below:
* The bar in red indicates where Procore Technologies's ROIC % falls into.
Procore Technologies'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 ) |
= | -215.677 * ( 1 - -0.68% ) | / | ( (1359.365 | + | 1467.012) | / 2 ) |
= | -217.1436036 | / | 1413.1885 | |||
= | -15.37 % |
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 | )) |
= | 1740.41 | - | 113.464 | - | ( 582.205 | - | max(0, 531.638 | - | 799.219 | + | 582.205 | )) |
= | 1359.365 |
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 | )) |
= | 1893.568 | - | 113.252 | - | ( 677.951 | - | max(0, 642.43 | - | 955.734 | + | 677.951 | )) |
= | 1467.012 |
Procore Technologies'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 ) |
= | -149.336 * ( 1 - -2.43% ) | / | ( (1390.569 | + | 1467.012) | / 2 ) |
= | -152.9648648 | / | 1428.7905 | |||
= | -10.71 % |
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 | )) |
= | 1783.001 | - | 112.041 | - | ( 626.48 | - | max(0, 561.555 | - | 841.946 | + | 626.48 | )) |
= | 1390.569 |
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 | )) |
= | 1893.568 | - | 113.252 | - | ( 677.951 | - | max(0, 642.43 | - | 955.734 | + | 677.951 | )) |
= | 1467.012 |
Note: The Operating Income data used here is four times the quarterly (Dec. 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.
Procore Technologies (NYSE:PCOR) 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, Procore Technologies's WACC % is 10.63%. Procore Technologies's ROIC % is -15.35% (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.
Thank you for viewing the detailed overview of Procore Technologies's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
O Connor Kevin J | director | C/O DOUBLECLICK INC., 111 EIGHTH AVENUE, NEW YORK NY 10011 |
Benjamin C Singer | officer: Chief Legal Officer; Secretary | 5 CROSBY STREET, NEW YORK NY 10013 |
Howard Fu | officer: CFO & Treasurer | 6309 CARPINTERIA AVE, CARPINTERIA CA 93013 |
Courtemanche Craig F. Jr. | director, officer: Chief Executive Officer, other: Chairman of the Board | 6309 CARPINTERIA AVE, CARPINTERIA CA 93013 |
Nanci Caldwell | director | C/O DELTEK, INC., 2291 WOOD OAK DRIVE, HERNDON VA 20171 |
Iconiq Strategic Partners Ii, L.p. | 10 percent owner | 50 BEALE ST., STE 2300, SAN FRANCISCO CA 94105 |
Griffith William J.g. | director, 10 percent owner | 21300 VICTORY BLVD., 12TH FLOOR, WOODLAND HILLS CA 91367 |
Joy Driscoll Durling | officer: Chief Data Officer | 772 UTAH VALLEY DRIVE, AMERICAN FORK UT 84003 |
Steven Scott Davis | officer: President Product & Technology | 6309 CARPINTERIA AVE, CARPINTERIA CA 93013 |
Fleming William Fred Jr | officer: VP, Corporate Controller | 6309 CARPINTERIA AVE, CARPINTERIA CA 93013 |
Elisa Steele | director | 1601 CLOVERFIELD BLVD, STE 620 SOUTH, SANTA MONICA CA 90404 |
Kathryn Bueker | director | C/O HUBSPOT, INC., 25 FIRST STREET, 2ND FLOOR, CAMBRIDGE MA 02141 |
Graham Smith | director | 301 BRANNMAN ST, SAN FRANCISCO CA 94107 |
Paul Lyandres | officer: Chief Financial Officer | 6309 CARPINTERIA AVE, CARPINTERIA CA 93013 |
Dennis Lyandres | officer: Chief Revenue Officer | 6309 CARPINTERIA AVE, CARPINTERIA CA 93013 |
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