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NSBBF (NorthStar Gaming Holdings) ROC % : -75.76% (As of Sep. 2024)


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What is NorthStar Gaming Holdings 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 %. NorthStar Gaming Holdings's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -75.76%.

As of today (2024-12-14), NorthStar Gaming Holdings's WACC % is 13.09%. NorthStar Gaming Holdings's ROC % is -181.85% (calculated using TTM income statement data). NorthStar Gaming Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

NorthStar Gaming Holdings ROC % Historical Data

The historical data trend for NorthStar Gaming Holdings'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.

NorthStar Gaming Holdings ROC % Chart

NorthStar Gaming Holdings Annual Data
Trend Jun22 Dec23
ROC %
- -269.76

NorthStar Gaming Holdings Quarterly Data
Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROC % Get a 7-Day Free Trial -241.10 -353.20 -219.88 -163.56 -75.76

NorthStar Gaming Holdings ROC % Calculation

NorthStar Gaming Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

ROC % (A: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jun. 2022 ) + Invested Capital (A: Dec. 2023 ))/ count )
=-19.854 * ( 1 - 0% )/( (0 + 7.36)/ 1 )
=-19.854/7.36
=-269.76 %

where

Invested Capital(A: Jun. 2022 )
=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))
=0.234 - 0.028 - ( 0.23 - max(0, 0.028 - 0.234+0.23))
=0

Invested Capital(A: Dec. 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))
=9.707 - 7.283 - ( 2.914 - max(0, 12.844 - 7.908+2.914))
=7.36

NorthStar Gaming Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2024 is calculated as:

ROC % (Q: Sep. 2024 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2024 ) + Invested Capital (Q: Sep. 2024 ))/ count )
=-8.524 * ( 1 - 0% )/( (10.095 + 12.408)/ 2 )
=-8.524/11.2515
=-75.76 %

where

Invested Capital(Q: Jun. 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))
=7.146 - 7.492 - ( 0.771 - max(0, 15.898 - 5.457+0.771))
=10.095

Invested Capital(Q: Sep. 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))
=7.712 - 7.81 - ( 0.92 - max(0, 18.556 - 6.05+0.92))
=12.408

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

NorthStar Gaming Holdings  (OTCPK:NSBBF) 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, NorthStar Gaming Holdings's WACC % is 13.09%. NorthStar Gaming Holdings's ROC % is -181.85% (calculated using TTM income statement data). NorthStar Gaming Holdings 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.

NorthStar Gaming Holdings ROC % Related Terms

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NorthStar Gaming Holdings Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » NorthStar Gaming Holdings Inc (OTCPK:NSBBF) » Definitions » ROC %
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Traded in Other Exchanges
BET:Canada
Address
220 King Street West, Suite 200, Toronto, ON, CAN, M5H 1K4
Website
https://www.northstargaming.ca
NorthStar Gaming Holdings Inc owns and operates a casino and sportsbook gaming platform. This segment's gaming revenue is primarily generated from the proceeds from the Company's online casino and sportsbook.