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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. GD Culture Group's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -320.72%.
As of today (2024-05-01), GD Culture Group's WACC % is 7.71%. GD Culture Group's ROIC % is -196.60% (calculated using TTM income statement data). GD Culture Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for GD Culture Group'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.
GD Culture Group Annual Data | |||||||||||||||||||
Trend | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | ||||||||||
ROIC % | Get a 7-Day Free Trial | -1.49 | -2.36 | -63.18 | -1.82 | -200.60 |
GD Culture Group Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
ROIC % | Get a 7-Day Free Trial | 271.51 | -3.04 | -17.91 | -176.16 | -320.72 |
For the Electronic Gaming & Multimedia subindustry, GD Culture Group'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.
For the Interactive Media industry and Communication Services sector, GD Culture Group's ROIC % distribution charts can be found below:
* The bar in red indicates where GD Culture Group's ROIC % falls into.
GD Culture Group'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 ) |
= | -11.991 * ( 1 - -2.76% ) | / | ( (3.274 | + | 9.011) | / 2 ) |
= | -12.3219516 | / | 6.1425 | |||
= | -200.60 % |
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 | )) |
= | 3.801 | - | 0.138 | - | ( 0.389 | - | max(0, 0.334 | - | 1.61 | + | 0.389 | )) |
= | 3.274 |
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 | )) |
= | 14.21 | - | 0.023 | - | ( 5.176 | - | max(0, 0.403 | - | 9.078 | + | 5.176 | )) |
= | 9.011 |
GD Culture Group'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 ) |
= | -32.792 * ( 1 - -3.98% ) | / | ( (12.252 | + | 9.011) | / 2 ) |
= | -34.0971216 | / | 10.6315 | |||
= | -320.72 % |
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 | )) |
= | 13.906 | - | 0.007 | - | ( 1.647 | - | max(0, 0.331 | - | 6.626 | + | 1.647 | )) |
= | 12.252 |
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 | )) |
= | 14.21 | - | 0.023 | - | ( 5.176 | - | max(0, 0.403 | - | 9.078 | + | 5.176 | )) |
= | 9.011 |
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.
GD Culture Group (NAS:GDC) 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, GD Culture Group's WACC % is 7.71%. GD Culture Group's ROIC % is -196.60% (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.
Thank you for viewing the detailed overview of GD Culture Group's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hongxiang Yu | director, 10 percent owner, officer: Vice President | BEIHUANZHONG ROAD JUNAN COUNTY, SHANDONG F4 276600 |
Shuang Zhang | director, officer: vice president | NO 119 SOUTH ZHAOJUESI ROAD, 2ND FLOOR, ROOM 1, CHENGHUA DISTRICT, CHENGDU SICHUAN F4 610047 |
Yajing Li | director | NO 2020 ZHONGSHANXI ROAD, ROOM 502A40, SHANGHAI F4 200030 |
Wei Xu | director, 10 percent owner | 18 QINGNIAN WEST ROAD, HONGQIAO BUILDING WEST, 4TH FLOOR, NANTONG, JINAGSU, F4 226001 |
Yimin Jin | director, 10 percent owner, officer: Chief Executive Officer | BEIHUANZHONG JUNAN COURT, SHANDONG F4 276600 |
Qihai Wang | director | NO 2020 ZHONGSHANXI ROAD, ROOM 502A40, SHANGHAI F4 200030 |
Xiaoyan Shen | officer: CFO and Secretary | A-101 98 HUANGHAI ROAD TEDA, TIANJIN F4 300457 |
Arthur B Drogue | director | C/O SPAR GROUP, INC., 333 WESTCHESTER AVE, SOUTH BLDG, STE 204, WHITE PLAINS NY 10604 |
Kurt Jetta | director | 1615 SOUTH CONGRESS AVENUE, SUITE 103, DELRAY BEACH FL 33445 |
Chuanliu Ni | director, officer: Co-Chair & CEO | A-101 98 HUANGHAI ROAD TEDA, TIANJIN F4 300457 |
Chenchen Zhang | director | NO. 319 XIANXIA RD, FAREAS INTERNATIONAL PLAZA BLD A, RM 409, SHANGHAI F4 0000 |
Jiazhen Li | director, 10 percent owner, officer: Co-Chair | A101 HANGZHENG STREET CITY INDUSTRY PARK, NO. 21 JIEFANG AVENUE, QIAOKOU DISTRICT, WUHAN, HUBEI F4 430030 |
Yaqing Hu | director | NO. 319 XIANXIA RD, FAREAST, INTERNATIONAL PLAZA -BLD A, RM 409, SHANGHAI F4 0000 |
Hui Zhu | director | NO. 319 XIANXIA RD FAREAST, INTERNATIONAL PLAZA BLD A, RM 409, SHANGHAI F4 0000 |
Xiaonian Zhang | director, officer: President and Director | NO. 319 XIANXIA RD FAREAST, INTERNATIONAL PLAZA - BLD A, RM 409, SHANGHAI F4 00000 |
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