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NetDragon Websoft Holdings (FRA:3ND) ROC % : 6.95% (As of Jun. 2024)


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What is NetDragon Websoft Holdings 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 %. NetDragon Websoft Holdings's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 6.95%.

As of today (2025-03-16), NetDragon Websoft Holdings's WACC % is 7.22%. NetDragon Websoft Holdings's ROC % is 5.64% (calculated using TTM income statement data). NetDragon Websoft Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.


NetDragon Websoft Holdings ROC % Historical Data

The historical data trend for NetDragon Websoft Holdings'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.

* Premium members only.

NetDragon Websoft Holdings ROC % Chart

NetDragon Websoft Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 17.57 21.05 24.18 21.02 11.01

NetDragon Websoft Holdings Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.09 14.93 16.33 -1.31 6.95

NetDragon Websoft Holdings ROC % Calculation

NetDragon Websoft Holdings'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 )
=132.923 * ( 1 - 29.61% )/( (771.129 + 928.532)/ 2 )
=93.5644997/849.8305
=11.01 %

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))
=1493.648 - 218.408 - ( 540.535 - max(0, 401.339 - 905.45+540.535))
=771.129

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))
=1333.337 - 205.228 - ( 334.94 - max(0, 441.278 - 640.855+334.94))
=928.532

NetDragon Websoft Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

ROC % (Q: Jun. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2023 ) + Invested Capital (Q: Jun. 2024 ))/ count )
=152.642 * ( 1 - 56.55% )/( (928.532 + 980.133)/ 2 )
=66.322949/954.3325
=6.95 %

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))
=1333.337 - 205.228 - ( 334.94 - max(0, 441.278 - 640.855+334.94))
=928.532

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))
=1352.388 - 187.216 - ( 348.437 - max(0, 518.879 - 703.918+348.437))
=980.133

Note: The Operating Income data used here is two times the semi-annual (Jun. 2024) 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.


NetDragon Websoft Holdings  (FRA:3ND) 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, NetDragon Websoft Holdings's WACC % is 7.22%. NetDragon Websoft Holdings's ROC % is 5.64% (calculated using TTM income statement data). NetDragon Websoft Holdings 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.


NetDragon Websoft Holdings ROC % Related Terms

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NetDragon Websoft Holdings Business Description

Traded in Other Exchanges
Address
No. 58, Wenquan Branch Road, 851 Building, Gulou District, Fujian Province, Fuzhou, CHN, 350001
NetDragon Websoft Holdings Ltd is an investment holding company principally engaged in the provision of gaming and application services, Mynd.ai business and property development business. Its gaming and application services include Internet and technology-enabled services, including gaming and software and related or ancillary services. Its mynd.ai business is mainly overseas education business. The Company's online and mobile games are published through a large number of domestic third-party platforms. The Company conducts its businesses within the domestic market and overseas markets.

NetDragon Websoft Holdings Headlines

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