GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Kensington Capital Acquisition Corp V (NYSE:KCGI) » Definitions » ROIC %

Kensington Capital Acquisition V (Kensington Capital Acquisition V) ROIC % : -1.78% (As of Dec. 2023)


View and export this data going back to 2021. Start your Free Trial

What is Kensington Capital Acquisition V 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 %. Kensington Capital Acquisition V's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -1.78%.

As of today (2024-05-04), Kensington Capital Acquisition V's WACC % is 10.45%. Kensington Capital Acquisition V's ROIC % is -1.34% (calculated using TTM income statement data). Kensington Capital Acquisition V earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Kensington Capital Acquisition V ROIC % Historical Data

The historical data trend for Kensington Capital Acquisition V'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.

* Premium members only.

Kensington Capital Acquisition V ROIC % Chart

Kensington Capital Acquisition V Annual Data
Trend Dec21 Dec22 Dec23
ROIC %
- -0.47 -1.55

Kensington Capital Acquisition V Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.33 -1.46 -1.22 -1.00 -1.78

Competitive Comparison of Kensington Capital Acquisition V's ROIC %

For the Shell Companies subindustry, Kensington Capital Acquisition V'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.


Kensington Capital Acquisition V's ROIC % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Kensington Capital Acquisition V's ROIC % distribution charts can be found below:

* The bar in red indicates where Kensington Capital Acquisition V's ROIC % falls into.



Kensington Capital Acquisition V ROIC % Calculation

Kensington Capital Acquisition V'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 )
=-2.576 * ( 1 - 0% )/( (283.043 + 50.318)/ 2 )
=-2.576/166.6805
=-1.55 %

where

Kensington Capital Acquisition V'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 )
=-0.888 * ( 1 - 0% )/( (49.526 + 50.318)/ 2 )
=-0.888/49.922
=-1.78 %

where

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.


Kensington Capital Acquisition V  (NYSE:KCGI) 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, Kensington Capital Acquisition V's WACC % is 10.45%. Kensington Capital Acquisition V's ROIC % is -1.34% (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.


Kensington Capital Acquisition V ROIC % Related Terms

Thank you for viewing the detailed overview of Kensington Capital Acquisition V's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


Kensington Capital Acquisition V (Kensington Capital Acquisition V) Business Description

Traded in Other Exchanges
N/A
Address
1400 Old Country Road, Suite 301, Westbury, NY, USA, 11590
Kensington Capital Acquisition Corp V is a blank check company.
Executives
Peter Allan Goode officer: Chief Technology Officer C/O KENSINGTON CAPITAL ACQUISITION CORP., 1400 OLD COUNTRY ROAD, SUITE 301, WESTBURY NY 11590
William E Kassling director C/O WASTEC, 10001 AIR BREAK AVE, WILMERDING PA 15148
Steeg Nickolas Vande director PARKER HANNIFIN CORP, 6035 PARKLAND BLVD, CLEVELAND OH 44112
Mitchell I Quain director 53 FOREST AVENUE, SUITE 101, OLD GREENWICH CT 06870
Justin E Mirro director, 10 percent owner, officer: See Remarks 40300 TRADITIONS DRIVE, NORTHVILLE MI 48168
Anders Pettersson director CARITASGATAN 23A, LIMHAMN V7 216 18
Daniel Elliot Huber officer: Chief Financial Officer 3355 PIERSON DRIVE, WILMINGTON DE 19810
John Andrew Arney director, officer: Vice Chairman and President 7-10 ADAM STREET, LONDON X0 WC2N 6AA
Mark Robertshaw director BOSINNEY, THE LEIGH, KINGSTON UPON THAMES, SURREY X0 KT2 7DS
Julian Philipp Ameler officer: Head of Business Development 7-10 ADAM STREET, LONDON X0 WC2N 6AA
Kensington Capital Sponsor V Llc 10 percent owner 1400 OLD COUNTRY ROAD, SUITE 301, WESTBURY NY 11590