GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » NorthStar Gaming Holdings Inc (TSXV:BET) » Definitions » ROIC %

NorthStar Gaming Holdings (TSXV:BET) ROIC % : -351.71% (As of Dec. 2023)


View and export this data going back to 2023. Start your Free Trial

What is NorthStar Gaming Holdings 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 %. NorthStar Gaming Holdings's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -351.71%.

As of today (2024-05-11), NorthStar Gaming Holdings's WACC % is 9.41%. NorthStar Gaming Holdings's ROIC % is -401.70% (calculated using TTM income statement data). NorthStar Gaming Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


NorthStar Gaming Holdings ROIC % Historical Data

The historical data trend for NorthStar Gaming Holdings'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.

NorthStar Gaming Holdings ROIC % Chart

NorthStar Gaming Holdings Annual Data
Trend Jun22 Dec23
ROIC %
- -269.76

NorthStar Gaming Holdings Quarterly Data
Dec22 Mar23 Jun23 Sep23 Dec23
ROIC % - -1,491.11 -596.42 -242.37 -351.71

Competitive Comparison of NorthStar Gaming Holdings's ROIC %

For the Electronic Gaming & Multimedia subindustry, NorthStar Gaming Holdings'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.


NorthStar Gaming Holdings's ROIC % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, NorthStar Gaming Holdings's ROIC % distribution charts can be found below:

* The bar in red indicates where NorthStar Gaming Holdings's ROIC % falls into.



NorthStar Gaming Holdings ROIC % Calculation

NorthStar Gaming Holdings'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: Jun. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-26.636 * ( 1 - 0% )/( (0 + 9.874)/ 2 )
=-26.636/4.937
=-539.52 %

where

NorthStar Gaming Holdings'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 )
=-34.828 * ( 1 - 0% )/( (9.931 + 9.874)/ 2 )
=-34.828/9.9025
=-351.71 %

where

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


NorthStar Gaming Holdings  (TSXV:BET) 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, NorthStar Gaming Holdings's WACC % is 9.41%. NorthStar Gaming Holdings's ROIC % is -401.70% (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.


NorthStar Gaming Holdings ROIC % Related Terms

Thank you for viewing the detailed overview of NorthStar Gaming Holdings's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.


NorthStar Gaming Holdings (TSXV:BET) Business Description

Traded in Other Exchanges
Address
220 King Street West, Suite 200, Toronto, ON, CAN, M5V 3M2
NorthStar Gaming Holdings Inc owns and operates a casino and sportsbook gaming platform. This segment's gaming revenue is primarily generated from the proceeds from the Company's online casino and sportsbook.

NorthStar Gaming Holdings (TSXV:BET) Headlines

No Headlines