East Side Games Group (East Side Games Group) ROC % : 13.94% (As of Mar. 2024)

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What is East Side Games 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 %. East Side Games Group's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 13.94%.

As of today (2024-06-09), East Side Games Group's WACC % is 9.24%. East Side Games Group's ROC % is 6.93% (calculated using TTM income statement data). East Side Games Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

East Side Games Group ROC % Historical Data

The historical data trend for East Side Games 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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East Side Games Group ROC % Chart

East Side Games Group Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

-45.55

89.31

-7.34

-13.13

-0.37

East Side Games Group Quarterly Data
	Mar19	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														-5.71	-0.67	-0.42	7.88	13.94

East Side Games Group ROC % Calculation

East Side Games 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 )
=	0.52 * ( 1 - 131.1% )	/	( (48.368	+	38.567)	/ 2 )
=	-0.16172	/	43.4675
=	-0.37 %

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	))
=	59.071	-	11.685	-	( 4.165	-	max(0, 14.563	-	13.581	+	4.165	))
=	48.368

	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	))
=	51.771	-	9.3	-	( 3.904	-	max(0, 10.526	-	15.692	+	3.904	))
=	38.567

East Side Games Group'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 )
=	4.36 * ( 1 - -21.46% )	/	( (38.567	+	37.437)	/ 2 )
=	5.295656	/	38.002
=	13.94 %

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	))
=	51.771	-	9.3	-	( 3.904	-	max(0, 10.526	-	15.692	+	3.904	))
=	38.567

	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	))
=	51.443	-	8.65	-	( 5.356	-	max(0, 9.568	-	16.591	+	5.356	))
=	37.437

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

East Side Games Group (OTCPK:EAGRF) 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, East Side Games Group's WACC % is 9.24%. East Side Games Group's ROC % is 6.93% (calculated using TTM income statement data). East Side Games 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.

East Side Games Group ROC % Related Terms

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East Side Games Group (East Side Games Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » East Side Games Group Inc (OTCPK:EAGRF) » Definitions » ROC %

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EAGR:Canada

Address

#3104 - 1055 Dunsmuir Street, Four Bentall Centre, Vancouver, BC, CAN, V7X 1G4

Website

https://www.eastsidegamesgroup.com

East Side Games Group Inc is a free-to-play mobile game group, that creates engaging games that produce enduring player loyalty. Its studio group entrepreneurial culture is anchored in creativity, execution, and growth through a diverse portfolio of original and licensed IP mobile games that include Archer: Danger Phone, Bud Farm Idle Tycoon, Cheech & Chong Bud Farm, The Goldbergs: Back to the 80s, It's Always Sunny: The Gang Goes Mobile; Trailer Park Boys Greasy Money, and many more. It generates revenue through in-app purchases (IAP) from the sale of in-game virtual items that enhance the gameplaying experience, and through in-game advertising.