Marti Technologies (Marti Technologies) ROIC % : -334.44% (As of Dec. 2023)

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What is Marti Technologies 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 %. Marti Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -334.44%.

As of today (2024-05-14), Marti Technologies's WACC % is 15.85%. Marti Technologies's ROIC % is -79.67% (calculated using TTM income statement data). Marti Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Marti Technologies ROIC % Historical Data

The historical data trend for Marti 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.

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Marti Technologies ROIC % Chart

Marti Technologies Annual Data

Trend

Dec20

Dec21

Dec22

Dec23

ROIC %

-22.46

-41.77

-48.82

-98.47

Marti Technologies Quarterly Data
	Dec20	Sep21	Dec21	Sep22	Dec22	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial			-62.38	-	-7.69	-	-334.44

Competitive Comparison of Marti Technologies's ROIC %

For the Software - Application subindustry, Marti 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.

Marti Technologies's ROIC % Distribution in the Software Industry

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

* The bar in red indicates where Marti Technologies's ROIC % falls into.

Marti Technologies ROIC % Calculation

Marti 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 )
=	-29.522 * ( 1 - 0% )	/	( (31.785	+	28.177)	/ 2 )
=	-29.522	/	29.981
=	-98.47 %

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	))
=	40.878	-	4.505	-	( 10.498	-	max(0, 15.867	-	20.455	+	10.498	))
=	31.785

	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	))
=	40.211	-	3.84	-	( 19.424	-	max(0, 17.502	-	25.696	+	19.424	))
=	28.177

Marti 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 )
=	-92.576 * ( 1 - 0% )	/	( (27.184	+	28.177)	/ 2 )
=	-92.576	/	27.6805
=	-334.44 %

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	))
=	31.705	-	5.379	-	( 3.97	-	max(0, 13.338	-	12.48	+	3.97	))
=	27.184

	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	))
=	40.211	-	3.84	-	( 19.424	-	max(0, 17.502	-	25.696	+	19.424	))
=	28.177

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

Marti Technologies (AMEX:MRT) 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, Marti Technologies's WACC % is 15.85%. Marti Technologies's ROIC % is -79.67% (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.

Marti Technologies ROIC % Related Terms

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Marti Technologies (Marti Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Marti Technologies Inc (AMEX:MRT) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2001 S Street NW, Suite 320, Washington, DC, USA, 20009

Website

https://www.marti.tech

Marti Technologies Inc is a mobility app, operating a fleet of over 48,000 e-mopeds, e-bikes, and e-scooters, serviced by proprietary software systems and IoT infrastructure.

Executives

Adam S Metz	director	110 NORTH WACKER DRIVE, CHICAGO IL 60606
Shelley Guiley	director	2001 S STREET NW, SUITE 320, C/O GALATA ACQUISITION CORP., WASHINGTON DC 20009
Kemal Kaya	director, officer: Chief Executive Officer	2001 S STREET NW, SUITE 320, C/O GALATA ACQUISITION CORP., WASHINGTON DC 20009
Michael Tanzer	officer: Chief Financial Officer	2001 S STREET NW, SUITE 320, C/O GALATA ACQUISITION CORP., WASHINGTON DC 20009
Daniel Freifeld	director, 10 percent owner, officer: President and CIO	2001 S STREET NW, SUITE 320, C/O GALATA ACQUISITION CORP., WASHINGTON DC 20009
Galata Acquisition Sponsor Llc	10 percent owner	2001 S STREET NW, SUITE 320, WASHINGTON DC 20009
Timothy Michael Shannon	director	2001 S STREET NW, SUITE 320, C/O GALATA ACQUISITION CORP., WASHINGTON DC 20009