Pegasus Digital Mobility Acquisition (Pegasus Digital Mobility Acquisition) ROIC % : -9.77% (As of Dec. 2023)

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What is Pegasus Digital Mobility Acquisition 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 %. Pegasus Digital Mobility Acquisition's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -9.77%.

As of today (2024-05-27), Pegasus Digital Mobility Acquisition's WACC % is 9.76%. Pegasus Digital Mobility Acquisition's ROIC % is -4.83% (calculated using TTM income statement data). Pegasus Digital Mobility Acquisition earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Pegasus Digital Mobility Acquisition ROIC % Historical Data

The historical data trend for Pegasus Digital Mobility Acquisition'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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Pegasus Digital Mobility Acquisition ROIC % Chart

Pegasus Digital Mobility Acquisition Annual Data

Trend

Dec21

Dec22

Dec23

ROIC %

-0.89

-4.50

Pegasus Digital Mobility Acquisition Quarterly Data
	Apr21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial						-1.50	-3.93	-2.90	-8.66	-9.77

Competitive Comparison of Pegasus Digital Mobility Acquisition's ROIC %

For the Shell Companies subindustry, Pegasus Digital Mobility Acquisition'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.

Pegasus Digital Mobility Acquisition's ROIC % Distribution in the Diversified Financial Services Industry

For the Diversified Financial Services industry and Financial Services sector, Pegasus Digital Mobility Acquisition's ROIC % distribution charts can be found below:

* The bar in red indicates where Pegasus Digital Mobility Acquisition's ROIC % falls into.

Pegasus Digital Mobility Acquisition ROIC % Calculation

Pegasus Digital Mobility Acquisition'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 )
=	-6.464 * ( 1 - 0% )	/	( (230.596	+	57.003)	/ 2 )
=	-6.464	/	143.7995
=	-4.50 %

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	))
=	231.086	-	0.968	-	( 0.429	-	max(0, 0.968	-	0.49	+	0.429	))
=	230.596

	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	))
=	50.477	-	4.172	-	( 0.342	-	max(0, 11.093	-	0.395	+	0.342	))
=	57.003

Pegasus Digital Mobility Acquisition'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 )
=	-5.76 * ( 1 - 0% )	/	( (60.876	+	57.003)	/ 2 )
=	-5.76	/	58.9395
=	-9.77 %

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	))
=	55.035	-	3.112	-	( 0.356	-	max(0, 9.333	-	0.38	+	0.356	))
=	60.876

	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	))
=	50.477	-	4.172	-	( 0.342	-	max(0, 11.093	-	0.395	+	0.342	))
=	57.003

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

Pegasus Digital Mobility Acquisition (NYSE:PGSS) 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, Pegasus Digital Mobility Acquisition's WACC % is 9.76%. Pegasus Digital Mobility Acquisition's ROIC % is -4.83% (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.

Pegasus Digital Mobility Acquisition ROIC % Related Terms

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Pegasus Digital Mobility Acquisition (Pegasus Digital Mobility Acquisition) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Pegasus Digital Mobility Acquisition Corp (NYSE:PGSS) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

71 Fort Street, George Town, P.O Box 500, Grand Cayman, CYM, KY1-1106

Website

https://www.pegasusdigitalmobility.com

Pegasus Digital Mobility Acquisition Corp is a newly incorporated blank check company.

Executives

Tenor Capital Management Co., L.p.	10 percent owner	810 SEVENTH AVENUE, SUITE 1905, NEW YORK NY 10019
Robin Shah	10 percent owner	810 SEVENTH AVENUE, NEW YORK NY 10019
Tenor Opportunity Master Fund, Ltd.	10 percent owner	810 SEVENTH AVENUE, SUITE 1905, NEW YORK NY 10019
Steven John Norris	director	PO BOX 85587, SAN DIEGO CA 92186
Jeffrey H Foster	director	401 9TH STREET, NW #600, WASHINGTON DC 20004
John N. Doherty	director	1095 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Florian Wolf	director	260 MASON STREET, GREENWICH CT 06830
James Valentine Condon	director	260 MASON STREET, GREENWICH CT 06830
Ralf Speth	director, officer: Chief Executive Officer	260 MASON STREET, GREENWICH CT 06830
Stefan Berger	officer: Chief Investment Officer	260 MASON STREET, GREENWICH CT 06830
Pegasus Digital Mobility Sponsor Llc	10 percent owner	260 MASON STREET, GREENWICH CT 06830
Patrick J. Miller	director	260 MASON STREET, GREENWICH CT 06830
Faramaraz Jeremey Mistry	officer: Chief Financial Officer	260 MASON STREET, GREENWICH CT 06830