Gold Entertainment Group (Gold Entertainment Group) ROC % : -400.00% (As of Jan. 2018)

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What is Gold Entertainment 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 %. Gold Entertainment Group's annualized return on capital (ROC %) for the quarter that ended in Jan. 2018 was -400.00%.

As of today (2024-05-12), Gold Entertainment Group's WACC % is 0.00%. Gold Entertainment Group's ROC % is 0.00% (calculated using TTM income statement data). Gold Entertainment Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Gold Entertainment Group ROC % Historical Data

The historical data trend for Gold Entertainment 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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Gold Entertainment Group ROC % Chart

Gold Entertainment Group Annual Data

Trend

Jan02

Jan03

Jan04

Jan16

Jan17

Jan18

ROC %

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-100.00

-157.69

Gold Entertainment Group Quarterly Data
	Oct01	Jan02	Apr02	Jul02	Oct02	Jan03	Apr03	Jul03	Oct03	Jan04	Jan16	Apr16	Jul16	Oct16	Jan17	Apr17	Jul17	Oct17	Jan18
ROC %	Get a 7-Day Free Trial														-92.31	-52.17	-225.64	-86.49	-400.00

Gold Entertainment Group ROC % Calculation

Gold Entertainment Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2018 is calculated as:

	ROC % (A: Jan. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2017 )	+	Invested Capital (A: Jan. 2018 ))	/ count )
=	-0.041 * ( 1 - 0% )	/	( (0.026	+	0.026)	/ 2 )
=	-0.041	/	0.026
=	-157.69 %

where

	Invested Capital		(A: Jan. 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	))
=	0	-	0.102	-	( 0	-	max(0, 0.128	-	0	+	0	))
=	0.026

	Invested Capital		(A: Jan. 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	))
=	0.002	-	0.101	-	( 0.002	-	max(0, 0.127	-	0.002	+	0.002	))
=	0.026

Gold Entertainment Group's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2018 is calculated as:

	ROC % (Q: Jan. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2017 )	+	Invested Capital (Q: Jan. 2018 ))	/ count )
=	-0.088 * ( 1 - 0% )	/	( (0.018	+	0.026)	/ 2 )
=	-0.088	/	0.022
=	-400.00 %

where

	Invested Capital		(Q: Oct. 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	))
=	0.019	-	0.122	-	( 0.001	-	max(0, 0.122	-	0.001	+	0.001	))
=	0.018

	Invested Capital		(Q: Jan. 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	))
=	0.002	-	0.101	-	( 0.002	-	max(0, 0.127	-	0.002	+	0.002	))
=	0.026

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

Gold Entertainment Group (OTCPK:GEGP) 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, Gold Entertainment Group's WACC % is 0.00%. Gold Entertainment Group's ROC % is 0.00% (calculated using TTM income statement data). Gold Entertainment 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.

Gold Entertainment Group ROC % Related Terms

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Gold Entertainment Group (Gold Entertainment Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Distribution » Gold Entertainment Group Inc (OTCPK:GEGP) » Definitions » ROC %

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Address

2412 Irwin Street, Melbourne, FL, USA, 32901

Website

https://www.goldentertainment.com

Gold Entertainment Group Inc is engaged in the entertainment business including television shows and distribution.

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