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Games Workshop Group (Games Workshop Group) ROC % : 66.75% (As of Nov. 2023)


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What is Games Workshop 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 %. Games Workshop Group's annualized return on capital (ROC %) for the quarter that ended in Nov. 2023 was 66.75%.

As of today (2024-05-14), Games Workshop Group's WACC % is 13.28%. Games Workshop Group's ROC % is 64.83% (calculated using TTM income statement data). Games Workshop Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


Games Workshop Group ROC % Historical Data

The historical data trend for Games Workshop 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.

* Premium members only.

Games Workshop Group ROC % Chart

Games Workshop Group Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 84.86 64.10 84.18 60.40 60.63

Games Workshop Group Semi-Annual Data
May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23
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 75.71 51.96 57.51 64.84 66.75

Games Workshop Group ROC % Calculation

Games Workshop Group's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2023 is calculated as:

ROC % (A: May. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: May. 2022 ) + Invested Capital (A: May. 2023 ))/ count )
=212.484 * ( 1 - 21.04% )/( (286.443 + 267.041)/ 2 )
=167.7773664/276.742
=60.63 %

where

Games Workshop Group's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2023 is calculated as:

ROC % (Q: Nov. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: May. 2023 ) + Invested Capital (Q: Nov. 2023 ))/ count )
=235.074 * ( 1 - 25% )/( (267.041 + 261.194)/ 2 )
=176.3055/264.1175
=66.75 %

where

Invested Capital(Q: Nov. 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))
=434.577 - 34.95 - ( 138.433 - max(0, 76.493 - 241.667+138.433))
=261.194

Note: The Operating Income data used here is two times the semi-annual (Nov. 2023) 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.


Games Workshop Group  (OTCPK:GMWKF) 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, Games Workshop Group's WACC % is 13.28%. Games Workshop Group's ROC % is 64.83% (calculated using TTM income statement data). Games Workshop Group generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.


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.


Games Workshop Group ROC % Related Terms

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Games Workshop Group (Games Workshop Group) Business Description

Traded in Other Exchanges
Address
Willow Road, Lenton, Nottingham, GBR, NG7 2WS
Games Workshop Group PLC designs, manufactures and sells fantasy miniatures and games related products. It carries the manufacturing activity in the UK and sells the same in the different region of the countries such as Continental Europe, North America, and Asia Pacific. It operates through two segments Core and Licensing . The core segment includes all revenue and expenditure relating to the design, manufacture and sales of their fantasy miniatures and related products. The licensing segment includes all revenue and expenditure relating to licences granted to external partners. The company generates majority of its revenue from the core segment. The company offers more than 1000 products through there independent retail outlets in more than 50 countries.

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