Destiny Media Technologies (FRA:DME1) ROC % : 22.62% (As of Nov. 2024)

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What is Destiny Media Technologies 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 %. Destiny Media Technologies's annualized return on capital (ROC %) for the quarter that ended in Nov. 2024 was 22.62%.

As of today (2025-03-03), Destiny Media Technologies's WACC % is 7.91%. Destiny Media Technologies's ROC % is -3.96% (calculated using TTM income statement data). Destiny Media Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Destiny Media Technologies ROC % Historical Data

The historical data trend for Destiny Media Technologies'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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Destiny Media Technologies ROC % Chart

Destiny Media Technologies Annual Data

Trend

Aug15

Aug16

Aug17

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

Aug24

ROC %

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25.31

47.09

26.78

14.10

4.07

Destiny Media Technologies Quarterly Data
	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24	Nov24
ROC %	Get a 7-Day Free Trial															56.61	-32.09	27.38	-32.40	22.62

Destiny Media Technologies ROC % Calculation

Destiny Media Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2024 is calculated as:

	ROC % (A: Aug. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2023 )	+	Invested Capital (A: Aug. 2024 ))	/ count )
=	0.06 * ( 1 - 0% )	/	( (1.38	+	1.565)	/ 2 )
=	0.06	/	1.4725
=	4.07 %

where

	Invested Capital		(A: Aug. 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	))
=	3.563	-	0.346	-	( 1.837	-	max(0, 0.378	-	2.382	+	1.837	))
=	1.38

	Invested Capital		(A: Aug. 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	))
=	3.345	-	0.436	-	( 1.344	-	max(0, 0.474	-	2.145	+	1.344	))
=	1.565

Destiny Media Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2024 is calculated as:

	ROC % (Q: Nov. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Aug. 2024 )	+	Invested Capital (Q: Nov. 2024 ))	/ count )
=	0.356 * ( 1 - 0% )	/	( (1.565	+	1.583)	/ 2 )
=	0.356	/	1.574
=	22.62 %

where

	Invested Capital		(Q: Aug. 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	))
=	3.345	-	0.436	-	( 1.344	-	max(0, 0.474	-	2.145	+	1.344	))
=	1.565

	Invested Capital		(Q: Nov. 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	))
=	3.419	-	0.398	-	( 1.438	-	max(0, 0.421	-	2.282	+	1.438	))
=	1.583

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

Destiny Media Technologies (FRA:DME1) 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, Destiny Media Technologies's WACC % is 7.91%. Destiny Media Technologies's ROC % is -3.96% (calculated using TTM income statement data). Destiny Media Technologies 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.

Destiny Media Technologies ROC % Related Terms

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Destiny Media Technologies Business Description

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GURUFOCUS.COM » STOCK LIST » Technology » Software » Destiny Media Technologies Inc (FRA:DME1) » Definitions » ROC %

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DSNY:USA DSY:Canada

Address

1575 West Georgia Street, Suite 428, Vancouver, BC, CAN, V6G 2V3

Website

https://www.dsny.com

Destiny Media Technologies Inc is a provider of secure digital content distribution and promotion solutions. The company operates solely in the digital media software segment. Its predominant services are; Clipstream which enables any non-technical user to upload videos that will play on all modern web browsers; MTR, a digital tracking service that tracks and reports the number and times an individual track is played; and Play MPE, a digital distribution service that is used commercially by the recording industry. Destiny services are based on proprietary security, watermarking, and instant play streaming media technologies. It also offers audio and video streaming solutions and secure file distribution to customers. Geographically, the company derives maximum revenue from Canada.

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