CMGO (CMG Holdings Group) ROC % : -36.24% (As of Sep. 2024)

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What is CMG Holdings Group 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 %. CMG Holdings Group's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -36.24%.

As of today (2024-12-11), CMG Holdings Group's WACC % is 1.64%. CMG Holdings Group's ROC % is -7.04% (calculated using TTM income statement data). CMG Holdings Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

CMG Holdings Group ROC % Historical Data

The historical data trend for CMG Holdings Group'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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CMG Holdings Group ROC % Chart

CMG Holdings Group Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-4.74

-73.17

-32.25

-10.95

-12.12

CMG Holdings Group Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-32.08	29.35	-23.25	1.24	-36.24

CMG Holdings Group ROC % Calculation

CMG Holdings Group'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 )
=	-0.198 * ( 1 - 0% )	/	( (1.578	+	1.69)	/ 2 )
=	-0.198	/	1.634
=	-12.12 %

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	))
=	1.955	-	0.039	-	( 0.338	-	max(0, 1.222	-	1.953	+	0.338	))
=	1.578

	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	))
=	1.99	-	0.059	-	( 0.241	-	max(0, 1.378	-	1.99	+	0.241	))
=	1.69

CMG Holdings Group's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-0.592 * ( 1 - 0% )	/	( (1.62	+	1.647)	/ 2 )
=	-0.592	/	1.6335
=	-36.24 %

where

	Invested Capital		(Q: Jun. 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	))
=	1.925	-	0.081	-	( 0.224	-	max(0, 1.356	-	1.925	+	0.224	))
=	1.62

	Invested Capital		(Q: Sep. 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	))
=	1.887	-	0.093	-	( 0.147	-	max(0, 1.439	-	1.887	+	0.147	))
=	1.647

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

CMG Holdings Group (OTCPK:CMGO) 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, CMG Holdings Group's WACC % is 1.64%. CMG Holdings Group's ROC % is -7.04% (calculated using TTM income statement data). CMG Holdings Group 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.

CMG Holdings Group ROC % Related Terms

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CMG Holdings Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » CMG Holdings Group Inc (OTCPK:CMGO) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

2130 North Lincoln Park West 8 North, Chicago, IL, USA, 60614

Website

https://www.cmgholdingsinc.com

CMG Holdings Group Inc is a marketing communications company focused on the operation of organizations in the alternative advertising, digital media, experiential and interactive marketing, and entertainment industries. It operates in two segments: XA and CMG Holding Group.

Executives

Glenn B Laken	director, officer: CEO	2130 N LINCOLN PARK WEST, APT 8N, CHICAGO IL 60614
David J Kovacs	director	153 EAST 32ND STREET, UNIT 3C, NEW YORK NY 10016
James Ennis	director, officer: Chief Financial Officer	5601 BISCAYNE BLVD., MIAMI FL 31337
Alan Morell	director, 10 percent owner, officer: CEO	5601 BISCAYNE BLVD., MIAMI FL 31337
Aaron Joseph Hashim	officer: President	PO BOX 2346, BAKERSFIELD CA 93303
Annette Lynn Davis	director, 10 percent owner	PO BOX 2346, BAKERSFIELD CA 93303
Jennifer Ann Davis	officer: Secretary	PO BOX 2346, BAKERSFIELD CA 93303
Lesa Marie Hashim	officer: Treasurer	PO BOX 2346, BAKERSFIELD CA 93303