Napster Group (LSE:NAPS) ROC % : 0.00% (As of Jun. 2021)

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What is Napster 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 %. Napster Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2021 was 0.00%.

As of today (2024-05-26), Napster Group's WACC % is 0.00%. Napster Group's ROC % is 0.00% (calculated using TTM income statement data). Napster Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Napster Group ROC % Historical Data

The historical data trend for Napster 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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Napster Group ROC % Chart

Napster Group Annual Data

Trend

Sep17

Sep18

Dec20

ROC %

-10.50

10.76

-42.69

Napster Group Quarterly Data
	Sep17	Sep18	Jun20	Dec20	Jun21
ROC %	-	-	-	-	-

Napster Group ROC % Calculation

Napster Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2020 is calculated as:

	ROC % (A: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2018 )	+	Invested Capital (A: Dec. 2020 ))	/ count )
=	-26.026 * ( 1 - 16.32% )	/	( (86.647	+	15.379)	/ 2 )
=	-21.7785568	/	51.013
=	-42.69 %

where

	Invested Capital		(A: Sep. 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	))
=	43.506	-	9.851	-	( 8.005	-	max(0, 82.844	-	29.852	+	8.005	))
=	86.647

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	23.159	-	5.157	-	( 2.623	-	max(0, 10.118	-	18.982	+	2.623	))
=	15.379

Napster Group's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2021 is calculated as:

	ROC % (Q: Jun. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2020 )	+	Invested Capital (Q: Jun. 2021 ))	/ count )
=	0 * ( 1 - % )	/	( (15.379	+	66.756)	/ 2 )
=	0	/	41.0675
=	0.00 %

where

	Invested Capital		(Q: Dec. 2020 )
=	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	))
=	23.159	-	5.157	-	( 2.623	-	max(0, 10.118	-	18.982	+	2.623	))
=	15.379

	Invested Capital		(Q: Jun. 2021 )
=	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	))
=	78.608	-	42.967	-	( 9.7	-	max(0, 58.902	-	27.787	+	9.7	))
=	66.756

Note: The Operating Income data used here is four times the quarterly (Jun. 2021) data.

Napster Group (LSE:NAPS) 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, Napster Group's WACC % is 0.00%. Napster Group's ROC % is 0.00% (calculated using TTM income statement data). Napster 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.

Napster Group ROC % Related Terms

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Napster Group (LSE:NAPS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Napster Group PLC (LSE:NAPS) » Definitions » ROC %

Comparable Companies

XFCI BOM:531420 BOM:532378 BOM:530457

Traded in Other Exchanges

N/A

Address

55 Poland Street, London, GBR, W1F 7NL

Website

https://www.napster.group

Napster Group PLC is a music company. It offers global music platform combining music streaming and immersive content that allows users to experience music performances in Virtual Reality. It derives revenue through Content sales, Telco partnerships, Content licensing, and Ticket revenue.

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