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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 %. Wheels Up Experience's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -17.16%.
As of today (2024-05-06), Wheels Up Experience's WACC % is 10.82%. Wheels Up Experience's ROIC % is -17.34% (calculated using TTM income statement data). Wheels Up Experience earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Wheels Up Experience'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.
Wheels Up Experience Annual Data | |||||||||||
Trend | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||
ROIC % | - | -3.68 | -10.93 | -17.93 | -17.15 |
Wheels Up Experience Quarterly Data | |||||||||||||||
Dec19 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
ROIC % | Get a 7-Day Free Trial | -18.32 | -17.70 | -16.71 | -17.99 | -17.16 |
For the Airports & Air Services subindustry, Wheels Up Experience'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 Transportation industry and Industrials sector, Wheels Up Experience's ROIC % distribution charts can be found below:
* The bar in red indicates where Wheels Up Experience's ROIC % falls into.
Wheels Up Experience'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 ) |
= | -334.296 * ( 1 - -0.28% ) | / | ( (2255.713 | + | 1654.08) | / 2 ) |
= | -335.2320288 | / | 1954.8965 | |||
= | -17.15 % |
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 | )) |
= | 1923.225 | - | 192.113 | - | ( 585.881 | - | max(0, 1344.22 | - | 819.619 | + | 585.881 | )) |
= | 2255.713 |
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 | )) |
= | 1316.06 | - | 135.448 | - | ( 263.909 | - | max(0, 907.502 | - | 434.034 | + | 263.909 | )) |
= | 1654.08 |
Wheels Up Experience'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 ) |
= | -282.104 * ( 1 - -0.79% ) | / | ( (1660.564 | + | 1654.08) | / 2 ) |
= | -284.3326216 | / | 1657.322 | |||
= | -17.16 % |
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 | )) |
= | 1327.694 | - | 126.382 | - | ( 244.847 | - | max(0, 869.02 | - | 409.768 | + | 244.847 | )) |
= | 1660.564 |
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 | )) |
= | 1316.06 | - | 135.448 | - | ( 263.909 | - | max(0, 907.502 | - | 434.034 | + | 263.909 | )) |
= | 1654.08 |
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.
Wheels Up Experience (NYSE:UP) 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, Wheels Up Experience's WACC % is 10.82%. Wheels Up Experience's ROIC % is -17.34% (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.
Thank you for viewing the detailed overview of Wheels Up Experience's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Donald Lee Moak | director | 601 WEST 26TH STREET, SUITE 900, NEW YORK NY 10001 |
Knighthead Opportunities Capital Management, Llc | 10 percent owner | 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017 |
Certares Opportunities Llc | 10 percent owner | 350 MADISON AVENUE, 8TH FLOOR, NEW YORK NY 10017 |
Andrew Stephen Davis | director | 500 OLD DOMINION WAY, THOMASVILLE NC 27360 |
Adam Ross Zirkin | director | 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017 |
Jeffrey Nedelman | director | 8501 WILLIAMS ROAD, ESTERO FL 33928 |
Alain Bellemare | director | C/O DELTA AIR LINES, INC., DEPT. 981, P.O. BOX 20574, ATLANTA GA 30320 |
Cantor Adam Corey | director | 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017 |
Ck Wheels Llc | 10 percent owner | 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017 |
George N Mattson | director | C/O DELTA AIR LINES, INC., P.O. BOX 20574, DEPT. 981, ATLANTA GA 30320 |
Ck Opportunities Gp, Llc | 10 percent owner | 280 PARK AVENUE, 22ND FLOOR EAST, NEW YORK NY 10017 |
Zachary George Lazar | director | 350 MADISON AVENUE, 8TH FLOOR, NEW YORK NY 10017 |
Mark Briffa | officer: Chief Commercial Officer | 601 WEST 26TH ST. SUITE 900, NEW YORK NY 10001 |
Daniel C. Janki | director | 5020 WESTON PARKWAY, SUITE 400, CARY NC 27513 |
Kristen Lauria | officer: See Remarks | 1601 CHESTNUT STREET, SHAREHOLDER SERVICES TL05Z, PHILADELPHIA PA 19192 |
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