ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Winking Studios's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 0.40%.
As of today (2026-06-27), Winking Studios's WACC % is 10.07%. Winking Studios's ROC % is 1.28% (calculated using TTM income statement data).
Winking Studios earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Winking Studios (LSE:WKS) 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, Winking Studios's WACC % is 10.07%. Winking Studios's ROC % is 1.28% (calculated using TTM income statement data).
Winking Studios 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.
Winking Studios ROC % Related Terms
Winking Studios ROC % Historical Data
* Premium members only.
The historical data trend for Winking Studios'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.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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.
Winking Studios (LSE:WKS) has a ROC % of 0.40% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Winking Studios and its competitors.
Is Winking Studios' ROC % too high?
Winking Studios' current ROC % is 0.40%. The Interactive Media industry median ROC % is 1.88. Winking Studios' value of 0.40% is 78.7% below this industry median. Overall, Winking Studios has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Winking Studios' ROC % compare to NTES and EA?
Winking Studios' ROC % of 0.40% can be compared against companies in the Interactive Media industry. The industry median ROC % is 1.88. Winking Studios' value of 0.40% is 78.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Interactive Media company?
The median ROC % among Interactive Media companies is 1.88, based on 560 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Winking Studios's current ROC % of 0.40% is 78.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Winking Studios and its competitors. For the Interactive Media industry, the median ROC % is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Winking Studios's current ROC % is 0.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Winking Studios stock overvalued right now?
Winking Studios (LSE:WKS) has a current ROC % of 0.40%. The current ROC % is 0.40% and 78.7% below the Interactive Media industry median of 1.88. Winking Studios' overall GF Score™ is 48/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Winking Studios (LSE:WKS), the current ROC % is 0.40% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Winking Studios Ltd is an art outsourcing and game development studio providing complete end-to-end art outsourcing and game development services across various platforms. The three primary business segments of the company are the Original Equipment Manufacturer (Art Outsourcing Segment), Original Design Manufacturer (Game Development Segment), and Global Publishing and Others. The company derives maximum revenue from the Art Outsourcing Segment, which creates and develops digital art assets as part of its provision of art outsourcing services. The Group can provide a wide gamut of design services that include 2D concept art, 3D modeling, 2D animation, 3D animation, and visual effects. This art includes environment design and game character design.
48GF Score
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