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AILE (iLearningEngines) ROIC % : -188.31% (As of Jun. 2024)


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What is iLearningEngines 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 %. iLearningEngines's annualized return on invested capital (ROIC %) for the quarter that ended in Jun. 2024 was -188.31%.

As of today (2024-10-31), iLearningEngines's WACC % is 11.07%. iLearningEngines's ROIC % is -94.16% (calculated using TTM income statement data). iLearningEngines earns returns that do not match up to its cost of capital. It will destroy value as it grows.


iLearningEngines ROIC % Historical Data

The historical data trend for iLearningEngines'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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iLearningEngines ROIC % Chart

iLearningEngines Annual Data
Trend Dec20 Dec21 Dec22
ROIC %
- 23.06 54.62

iLearningEngines Semi-Annual Data
Dec20 Dec21 Jun22 Dec22 Jun23 Jun24
ROIC % Get a 7-Day Free Trial - 28.03 66.51 34.72 -188.31

Competitive Comparison of iLearningEngines's ROIC %

For the Software - Infrastructure subindustry, iLearningEngines'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.


iLearningEngines's ROIC % Distribution in the Software Industry

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

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



iLearningEngines ROIC % Calculation

iLearningEngines'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 )
=11.878 * ( 1 - -108.81% )/( (32.909 + 57.905)/ 2 )
=24.8024518/45.407
=54.62 %

where

iLearningEngines's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Jun. 2024 is calculated as:

ROIC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=-154.63 * ( 1 - -0.38% )/( (69.555 + 95.295)/ 2 )
=-155.217594/82.425
=-188.31 %

where

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) 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.


iLearningEngines  (NAS:AILE) 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, iLearningEngines's WACC % is 11.07%. iLearningEngines's ROIC % is -94.16% (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.


iLearningEngines ROIC % Related Terms

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iLearningEngines Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
6701 Democracy Boulevard, Suite 300, Bethesda, MD, USA, 20817
iLearningEngines Inc is an AI and automation platform that empowers its customers to productize their institutional knowledge by transforming it into actionable intellectual property that enhances outcomes for employees, customers and other stakeholders. Its platform enables enterprises to build intelligent Knowledge Clouds that incorporate large volumes of structured and unstructured information across disparate internal and external systems and to automate organizational processes that leverage these Knowledge Clouds to improve performance. The company combines its offerings with vertically focused capabilities and data models to operationalize AI and automation to effectively and efficiently address critical challenges facing its customers.

iLearningEngines Headlines

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