Good Gaming (Good Gaming) ROC % : -1,448.98% (As of Mar. 2024)

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What is Good Gaming ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Good Gaming's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -1,448.98%.

As of today (2024-05-26), Good Gaming's WACC % is -2.83%. Good Gaming's ROC % is -896.30% (calculated using TTM income statement data). Good Gaming earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Good Gaming ROC % Historical Data

The historical data trend for Good Gaming's ROC % 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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Good Gaming ROC % Chart

Good Gaming Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-34.35

-13.33

-51.16

-904.17

-979.10

Good Gaming Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-1,290.43	-1,173.80	-964.19	-3.98	-1,448.98

Good Gaming ROC % Calculation

Good Gaming's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-0.984 * ( 1 - 0% )	/	( (0.115	+	0.086)	/ 2 )
=	-0.984	/	0.1005
=	-979.10 %

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	))
=	1.056	-	0.426	-	( 0.932	-	max(0, 0.426	-	0.941	+	0.932	))
=	0.115

	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	))
=	0.484	-	0.52	-	( 0.304	-	max(0, 0.52	-	0.398	+	0.304	))
=	0.086

Good Gaming's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-1.42 * ( 1 - 0% )	/	( (0.086	+	0.11)	/ 2 )
=	-1.42	/	0.098
=	-1,448.98 %

where

	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	))
=	0.484	-	0.52	-	( 0.304	-	max(0, 0.52	-	0.398	+	0.304	))
=	0.086

	Invested Capital		(Q: Mar. 2024 )
=	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	))
=	0.333	-	0.716	-	( 0.158	-	max(0, 0.716	-	0.223	+	0.158	))
=	0.11

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Good Gaming (OTCPK:GMER) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Good Gaming's WACC % is -2.83%. Good Gaming's ROC % is -896.30% (calculated using TTM income statement data). Good Gaming earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % 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.

Good Gaming ROC % Related Terms

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Good Gaming (Good Gaming) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Good Gaming Inc (OTCPK:GMER) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

415 McFarlan Road, Suite 108, Kennett Square, PA, USA, 19348

Website

https://www.good-gaming.com

Good Gaming Inc operates in the gaming industry across multiple segments. The company focuses on hosting multiple games online that subscribers can play for free or for fees depending on player level. It also offers social networking functionality, which helps gamers to interact, track each other and communicate.

Executives

Jordan Axt	director	2130 N. LINCOLN PARK WEST, CHICAGO IL 60614
Tassos D. Recachinas	director, 10 percent owner, officer: President	130 BROOKFIELD AVE., FAIRFIELD CT 06825
Hillwinds Ocean Energy, Llc	10 percent owner, other: Control Person (Entity)	501 KINGS HIGHWAY EAST, SUITE 108, FAIRFIELD CT 06825
Mark S Simon	director, officer: President/CEO/CFO	345 S END AVENUE #7P, NEW YORK NY 10280