Genius Sports (Genius Sports) ROC % : -16.99% (As of Mar. 2024)

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What is Genius Sports ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Genius Sports's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -16.99%.

As of today (2024-05-13), Genius Sports's WACC % is 15.51%. Genius Sports's ROC % is -13.22% (calculated using TTM income statement data). Genius Sports earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Genius Sports ROC % Historical Data

The historical data trend for Genius Sports's ROC % 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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Genius Sports ROC % Chart

Genius Sports Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

-8.80

-6.03

-109.61

-29.25

-12.59

Genius Sports Quarterly Data
	Dec18	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial														-15.03	-7.64	-5.92	-22.77	-16.99

Genius Sports ROC % Calculation

Genius Sports's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-71.664 * ( 1 - -6.41% )	/	( (614.216	+	597.106)	/ 2 )
=	-76.2576624	/	605.661
=	-12.59 %

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	))
=	773.337	-	93.744	-	( 122.715	-	max(0, 171.14	-	236.517	+	122.715	))
=	614.216

	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	))
=	775.724	-	116.751	-	( 100.331	-	max(0, 182.914	-	244.781	+	100.331	))
=	597.106

Genius Sports's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-95.256 * ( 1 - -4.45% )	/	( (597.106	+	573.832)	/ 2 )
=	-99.494892	/	585.469
=	-16.99 %

where

	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	))
=	775.724	-	116.751	-	( 100.331	-	max(0, 182.914	-	244.781	+	100.331	))
=	597.106

	Invested Capital		(Q: Mar. 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	))
=	745.421	-	117.303	-	( 67.532	-	max(0, 174.897	-	229.183	+	67.532	))
=	573.832

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

Genius Sports (NYSE:GENI) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Genius Sports's WACC % is 15.51%. Genius Sports's ROC % is -13.22% (calculated using TTM income statement data). Genius Sports 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 %, ROC % 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.

Genius Sports ROC % Related Terms

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Genius Sports (Genius Sports) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Genius Sports Ltd (NYSE:GENI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

10 Bloomsbury Way, 9th Floor, London, GBR, WC1A 2SL

Website

https://www.geniussports.com

Genius Sports Ltd is a B2B provider of scalable, technology-led products and services to the sports, sports betting, and sports media industries. Its services are organized into three key product areas including Sports Technology and Services; Betting Technology, Content and Services; and Media Technology, Content and Services. All of its products are powered by proprietary technology and robust data infrastructure. It generates maximum revenue from the Betting Technology, Content and Services division. Geographically, the company derives a majority of its revenue from Europe.