Dover Downs Gaming & Entertainment (Dover Downs Gaming & Entertainment) ROIC % : 1.84% (As of Dec. 2018)

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What is Dover Downs Gaming & Entertainment 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 %. Dover Downs Gaming & Entertainment's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2018 was 1.84%.

As of today (2024-05-13), Dover Downs Gaming & Entertainment's WACC % is 0.00%. Dover Downs Gaming & Entertainment's ROIC % is 0.00% (calculated using TTM income statement data). Dover Downs Gaming & Entertainment earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Dover Downs Gaming & Entertainment ROIC % Historical Data

The historical data trend for Dover Downs Gaming & Entertainment'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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Dover Downs Gaming & Entertainment ROIC % Chart

Dover Downs Gaming & Entertainment Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

ROIC %

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0.61

1.44

0.73

0.25

0.09

Dover Downs Gaming & Entertainment Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
ROIC %	Get a 7-Day Free Trial															-0.28	-0.45	0.57	3.36	1.84

Competitive Comparison of Dover Downs Gaming & Entertainment's ROIC %

For the Gambling subindustry, Dover Downs Gaming & Entertainment'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.

Dover Downs Gaming & Entertainment's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Dover Downs Gaming & Entertainment's ROIC % distribution charts can be found below:

* The bar in red indicates where Dover Downs Gaming & Entertainment's ROIC % falls into.

Dover Downs Gaming & Entertainment ROIC % Calculation

Dover Downs Gaming & Entertainment's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2018 is calculated as:

	ROIC % (A: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2017 )	+	Invested Capital (A: Dec. 2018 ))	/ count )
=	1.995 * ( 1 - 92.81% )	/	( (156.937	+	152.348)	/ 2 )
=	0.1434405	/	154.6425
=	0.09 %

where

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	161.805	-	19.394	-	( 10.714	-	max(0, 39.61	-	25.084	+	10.714	))
=	156.937

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	160.715	-	20.286	-	( 10.864	-	max(0, 39.488	-	27.569	+	10.864	))
=	152.348

Dover Downs Gaming & Entertainment's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2018 is calculated as:

	ROIC % (Q: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2018 )	+	Invested Capital (Q: Dec. 2018 ))	/ count )
=	4.608 * ( 1 - 38.92% )	/	( (154.094	+	152.348)	/ 2 )
=	2.8145664	/	153.221
=	1.84 %

where

	Invested Capital		(Q: Sep. 2018 )
=	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	))
=	161.309	-	19.901	-	( 10.184	-	max(0, 40.475	-	27.789	+	10.184	))
=	154.094

	Invested Capital		(Q: Dec. 2018 )
=	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	))
=	160.715	-	20.286	-	( 10.864	-	max(0, 39.488	-	27.569	+	10.864	))
=	152.348

Note: The Operating Income data used here is four times the quarterly (Dec. 2018) data.

Dover Downs Gaming & Entertainment (NYSE:DDE) 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, Dover Downs Gaming & Entertainment's WACC % is 0.00%. Dover Downs Gaming & Entertainment's ROIC % is 0.00% (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.

Dover Downs Gaming & Entertainment ROIC % Related Terms

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Dover Downs Gaming & Entertainment (Dover Downs Gaming & Entertainment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Dover Downs Gaming & Entertainment Inc (NYSE:DDE) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1131 North DuPont Highway, Dover, DE, USA, 19901

Website

http://www.doverdowns.com

Dover Downs Gaming & Entertainment Inc is a US-based gaming and entertainment company. It operates Dover Downs Casino; Dover Downs Hotel and Conference Center; and Dover Downs Raceway. The Dover Downs Casino operations include table games, including craps, roulette and card games, multi-player electronic table games, race and sports book operation, the festival buffet, Frankie's Italian restaurant, as well as several bars, restaurants and retail outlets. The Dover Downs Hotel and Conference Center include a fine dining restaurant, spa/salon, conference, banquet, ballroom and concert hall facilities. The Dover Downs Raceway includes a harness racing track with pari-mutuel wagering on live and simulcasts horse races. The firm derives the majority of revenue from gaming operation.

Executives

R Randall Rollins	other: See Footnote 1	SUNTRUST BANKS INC, PO BOX 4418 MC 643, ATLANTA GA 30302-4418
Henry B Tippie	other: See Footnote 1	TONY EVANS, 1131 N DUPONT HWY, DOVER DE 19903
Denis Mcglynn	other: See Footnote 1	POST OFFICE BOX 843, DOVER DE 19903
Klaus M Belohoubek	other: See Footnote 1
Timothy R Horne	other: See Footnote 1
Jeffrey W Rollins	other: See Footnote 1
Patrick J Bagley	other: See Footnote 1
Rmt Trust	other: See Footnote 1	3505 SILVERSIDE ROAD PLAZA CENTRE BLDG., SUITE 203 WILMINGTON DE 19810
Kenneth K Chalmers	director
Rollins John W Jr	director	1131 N DUPONT HGWY PO BOX 843 DOVER DE 19903
Eugene W Weaver	10 percent owner	P O BOX 843, DOVER DE 19803
Richard K Struthers	director	900 OLD KENNETT ROAD, GREENVILLE DE 19807
Gates Capital Management, Inc.	10 percent owner	1177 AVE. OF THE AMERICAS 46TH FLOOR NEW YORK NY 10036
Jeffrey L Gates	10 percent owner	1177 AVENUE OF THE AMERICAS 46TH FLOOR NEW YORK NY 10036
Estate Of Rollins John W Sr	10 percent owner	2200 CONCORD PIKE WILMINGTON DE 19803