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NDAQ (Nasdaq) ROIC % : 5.46% (As of Sep. 2024)


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What is Nasdaq 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 %. Nasdaq's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was 5.46%.

As of today (2024-10-31), Nasdaq's WACC % is 8.66%. Nasdaq's ROIC % is 5.01% (calculated using TTM income statement data). Nasdaq earns returns that do not match up to its cost of capital. It will destroy value as it grows.


Nasdaq ROIC % Historical Data

The historical data trend for Nasdaq'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.

Nasdaq ROIC % Chart

Nasdaq Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROIC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.73 7.23 6.96 6.25 5.25

Nasdaq Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROIC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.05 5.42 4.34 4.21 5.46

Competitive Comparison of Nasdaq's ROIC %

For the Financial Data & Stock Exchanges subindustry, Nasdaq'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.


Nasdaq's ROIC % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Nasdaq's ROIC % distribution charts can be found below:

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



Nasdaq ROIC % Calculation

Nasdaq'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 )
=1806 * ( 1 - 24.55% )/( (20428 + 31504)/ 2 )
=1362.627/25966
=5.25 %

where

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

ROIC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=1920 * ( 1 - 14.33% )/( (29965 + 30258)/ 2 )
=1644.864/30111.5
=5.46 %

where

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


Nasdaq  (NAS:NDAQ) 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, Nasdaq's WACC % is 8.66%. Nasdaq's ROIC % is 5.01% (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.


Nasdaq ROIC % Related Terms

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Nasdaq Business Description

Address
151 W. 42nd Street, New York, NY, USA, 10036
Founded in 1971, Nasdaq is primarily known for its equity exchange, but in addition to its market-services business (about 35% of sales), the company sells and distributes market data as well as offers Nasdaq-branded indexes to asset managers and investors through its information-services segment (30%). Nasdaq's corporate-services business (20%) offers listing services and related investor relations products to publicly traded companies and through the company's market technology group (15%), Nasdaq facilitates the exchange operations of other exchanges throughout the world and provides financial compliance services.
Executives
John Zecca officer: Executive Vice President 151 W. 42ND STREET, NEW YORK NY 10036
Bradley J Peterson officer: Executive Vice President ONE LIBERTY PLAZA, NEW YORK NY 10006
Adenza Parent, Lp director, 10 percent owner ONE MARKET PLAZA, SPEAR TOWER, SUITE 2400, SAN FRANCISCO CA 94150
Bryan Everard Smith officer: Executive Vice President 151 W. 42ND STREET, NEW YORK NY 10036
Borse Dubai Ltd 10 percent owner LEVEL 7, PRECINCT BLDG 5, GATE DISTRICT, PO BOX 506690, DUBAI INTL FINANCIAL CTR, DUBAI C0 00000
Spaht Paul Holden Jr. director 600 MONTGOMERY STREET, 20TH FLOOR, SAN FRANCISCO CA 94111
Thoma Bravo Ugp, Llc director, 10 percent owner 110 N. WACKER DRIVE, 32ND FLOOR, CHICAGO IL 60606
Ann M Dennison officer: Controller and Prin Acctg Ofcr ONE LIBERTY PLAZA, NEW YORK NY 10006
Johan Torgeby director 151 W. 42ND STREET, NEW YORK NY 10036
Jeffery W Yabuki director 255 FISERV DRIVE, BROOKFIELD WI 53045
Adena T Friedman officer: Executive Vice President 1801 K STREET, N.W., WASHINGTON DC 20006
Michael R Splinter director
Steven D Black director C/O JPMORGAN CHASE & CO., 270 PARK AVENUE, NEW YORK NY 10017
Michelle Lynn Daly officer: Controller and Prin Acctg Ofcr 151 W. 42ND STREET, NEW YORK NY 10036
Brendan Brothers officer: Interim Head of AFC 151 W. 42ND STREET, NEW YORK NY 10036