InterPrivate III Financial Partners (InterPrivate III Financial Partners) ROIC % : -18.14% (As of Sep. 2023)

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What is InterPrivate III Financial Partners 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 %. InterPrivate III Financial Partners's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was -18.14%.

As of today (2024-05-23), InterPrivate III Financial Partners's WACC % is 10.42%. InterPrivate III Financial Partners's ROIC % is -4.76% (calculated using TTM income statement data). InterPrivate III Financial Partners earns returns that do not match up to its cost of capital. It will destroy value as it grows.

InterPrivate III Financial Partners ROIC % Historical Data

The historical data trend for InterPrivate III Financial Partners'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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InterPrivate III Financial Partners ROIC % Chart

InterPrivate III Financial Partners Annual Data

Trend

Dec21

Dec22

ROIC %

-0.40

-1.67

InterPrivate III Financial Partners Quarterly Data
	Jan21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROIC %	Get a 7-Day Free Trial						-1.04	-1.30	-17.47	-31.52	-18.14

Competitive Comparison of InterPrivate III Financial Partners's ROIC %

For the Shell Companies subindustry, InterPrivate III Financial Partners'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.

InterPrivate III Financial Partners's ROIC % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, InterPrivate III Financial Partners's ROIC % distribution charts can be found below:

* The bar in red indicates where InterPrivate III Financial Partners's ROIC % falls into.

InterPrivate III Financial Partners ROIC % Calculation

InterPrivate III Financial Partners'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 )
=	-3.271 * ( 1 - 26.35% )	/	( (259.023	+	29.796)	/ 2 )
=	-2.4090915	/	144.4095
=	-1.67 %

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	))
=	260.594	-	1.487	-	( 1.501	-	max(0, 1.667	-	1.751	+	1.501	))
=	259.023

	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	))
=	37.341	-	11.87	-	( 7.592	-	max(0, 11.96	-	7.635	+	7.592	))
=	29.796

InterPrivate III Financial Partners's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROIC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-4.072 * ( 1 - 76.76% )	/	( (4.852	+	5.579)	/ 2 )
=	-0.9463328	/	5.2155
=	-18.14 %

where

	Invested Capital		(Q: Jun. 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	))
=	7.881	-	0.437	-	( 2.94	-	max(0, 0.437	-	3.029	+	2.94	))
=	4.852

	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	))
=	8.159	-	0.916	-	( 2.567	-	max(0, 0.928	-	2.592	+	2.567	))
=	5.579

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

InterPrivate III Financial Partners (AMEX:IPVF.U) 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, InterPrivate III Financial Partners's WACC % is 10.42%. InterPrivate III Financial Partners's ROIC % is -4.76% (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.

InterPrivate III Financial Partners ROIC % Related Terms

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InterPrivate III Financial Partners (InterPrivate III Financial Partners) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » InterPrivate III Financial Partners Inc (AMEX:IPVF.U) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1350 Avenue of the Americas, 2nd Floor, New York, NY, USA, 10019

Website

https://www.ipvspac.com

InterPrivate III Financial Partners Inc is a blank check company formed for the purpose of entering into a merger, capital stock exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more target businesses.

Executives

Richard A Mcginn	director	1350 AVENUE OF THE AMERICAS, NEW YORK NY 10019
John B Mccoy	director	208 S. AKARD ST., --, DALLAS TX 75202
Howard H Newman	director	C/O PINE BROOK ROAD PARTNERS, LLC, 60 EAST 42ND STREET, SUITE 3014, NEW YORK NY 10165
Ahmed M Fattouh	10 percent owner, officer: Chairman and CEO	C/O INTERPRIVATE ACQUISITION CORP., 1350 AVENUE OF THE AMERICAS, NEW YORK NY 10019
Brandon C Bentley	officer: General Counsel	C/O INTERPRIVATE ACQUISITION CORP., 1350 AVENUE OF THE AMERICAS, NEW YORK NY 10019
Minesh K Patel	officer: Vice President	C/O INTERPRIVATE ACQUISITION CORP., 1350 AVENUE OF THE AMERICAS, NEW YORK NY 10019
Sunil Aruna Kappagoda	director, officer: Vice Chairman	88 WEST PLUMERIA DRIVE, SAN JOSE CA 95134
Interprivate Acquisition Management Iii, Llc	10 percent owner, other: Director by Deputization	1350 AVENUE OF THE AMERICAS, NEW YORK NY 10019
Nicholaos Krenteras	director, officer: President	1350 AVENUE OF THE AMERICAS, NEW YORK NY 10019
Gordy Holterman	director	1350 AVENUE OF THE AMERICAS, NEW YORK NY 10019