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Signing Day Sports (Signing Day Sports) ROIC % : -89.69% (As of Sep. 2023)


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What is Signing Day Sports 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 %. Signing Day Sports's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2023 was -89.69%.

As of today (2024-05-11), Signing Day Sports's WACC % is 13.39%. Signing Day Sports's ROIC % is -117.91% (calculated using TTM income statement data). Signing Day Sports earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Signing Day Sports ROIC % Historical Data

The historical data trend for Signing Day Sports'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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Signing Day Sports ROIC % Chart

Signing Day Sports Annual Data
Trend Dec21 Dec22
ROIC %
-2,942.06 -592.87

Signing Day Sports Quarterly Data
Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
ROIC % Get a 7-Day Free Trial - -196.16 -150.87 -91.56 -89.69

Competitive Comparison of Signing Day Sports's ROIC %

For the Software - Application subindustry, Signing Day Sports'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.

Signing Day Sports's ROIC % Distribution in the Software Industry

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

* The bar in red indicates where Signing Day Sports's ROIC % falls into.


Signing Day Sports ROIC % Calculation

Signing Day Sports'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 )
=-5.573 * ( 1 - 0% )/( (0.214 + 1.666)/ 2 )
=-5.573/0.94
=-592.87 %

where

Invested Capital(A: Dec. 2021 )
=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))
=4.916 - 0.38 - ( 4.688 - max(0, 0.533 - 4.855+4.688))
=0.214

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))
=0.454 - 1.127 - ( 0.254 - max(0, 2.64 - 0.301+0.254))
=1.666

Signing Day Sports's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2023 is calculated as:

ROIC % (Q: Sep. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2023 ) + Invested Capital (Q: Sep. 2023 ))/ count )
=-2.392 * ( 1 - 0% )/( (2.749 + 2.585)/ 2 )
=-2.392/2.667
=-89.69 %

where

Invested Capital(Q: Jun. 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))
=1.339 - 1.675 - ( 0.055 - max(0, 3.264 - 0.179+0.055))
=2.749

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))
=1.923 - 2.722 - ( 0.023 - max(0, 3.497 - 0.113+0.023))
=2.585

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

Signing Day Sports  (AMEX:SGN) 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, Signing Day Sports's WACC % is 13.39%. Signing Day Sports's ROIC % is -117.91% (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.

Signing Day Sports ROIC % Related Terms

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Signing Day Sports (Signing Day Sports) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Technology » Software » Signing Day Sports Inc (AMEX:SGN) » Definitions » ROIC %
Comparable Companies
Traded in Other Exchanges
N/A
Address
8355 East Hartford Road, Suite 100, Scottsdale, AZ, USA, 85255
Website
https://signingdaysports.com
Signing Day Sports Inc is a technology company developing and operating platforms aiming to give significantly more student-athletes the opportunity to go to college and continue playing sports. Its platform Signing Day Sports is a digital ecosystem to help athletes get discovered and recruited by coaches and recruiters across the country. It currently fully supports football and baseball, and it plans to expand the Signing Day Sports platform to include additional sports.