Entertainment Network (India) (NSE:ENIL) ROC % : -11.44% (As of Sep. 2024)

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What is Entertainment Network (India) 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 %. Entertainment Network (India)'s annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -11.44%.

As of today (2024-12-12), Entertainment Network (India)'s WACC % is 11.07%. Entertainment Network (India)'s ROC % is 1.47% (calculated using TTM income statement data). Entertainment Network (India) earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Entertainment Network (India) ROC % Historical Data

The historical data trend for Entertainment Network (India)'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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Entertainment Network (India) ROC % Chart

Entertainment Network (India) Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

ROC %

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2.36

-6.71

-4.14

-21.71

3.13

Entertainment Network (India) Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															0.93	12.29	4.09	-5.35	-11.44

Entertainment Network (India) ROC % Calculation

Entertainment Network (India)'s annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2024 is calculated as:

	ROC % (A: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2023 )	+	Invested Capital (A: Mar. 2024 ))	/ count )
=	281.678 * ( 1 - 16.93% )	/	( (7746.848	+	7205.824)	/ 2 )
=	233.9899146	/	7476.336
=	3.13 %

where

	Invested Capital		(A: Mar. 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	))
=	12012.577	-	3654.452	-	( 3015.316	-	max(0, 4235.739	-	4847.016	+	3015.316	))
=	7746.848

	Invested Capital		(A: Mar. 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	))
=	12563.946	-	2484.57	-	( 3337.829	-	max(0, 3151.161	-	6024.713	+	3337.829	))
=	7205.824

Entertainment Network (India)'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 )
=	-356.076 * ( 1 - -121.04% )	/	( (0	+	6878.708)	/ 1 )
=	-787.0703904	/	6878.708
=	-11.44 %

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	))
=	0	-	0	-	( 0	-	max(0, 0	-	0	+	0	))
=	0

	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	))
=	11959.858	-	1905.61	-	( 4107.617	-	max(0, 2824.333	-	5999.873	+	4107.617	))
=	6878.708

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

Entertainment Network (India) (NSE:ENIL) 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, Entertainment Network (India)'s WACC % is 11.07%. Entertainment Network (India)'s ROC % is 1.47% (calculated using TTM income statement data). Entertainment Network (India) 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.

Entertainment Network (India) ROC % Related Terms

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Entertainment Network (India) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Entertainment Network (India) Ltd (NSE:ENIL) » Definitions » ROC %

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Traded in Other Exchanges

532700:India

Address

Senapati Bapat Marg, 14th Floor, Trade World, D wing, Kamala Mills Compound, Lower Parel (West), Mumbai, MH, IND, 400013

Website

https://www.enil.co.in

Entertainment Network (India) Ltd is a radio broadcasting company. It operates FM radio broadcasting stations in various Indian cities under the brand names Mirchi, Mirchi Love, and Kool FM. The company's principal revenue stream is advertising revenue which is generated through the sale of airtime in its FM radio broadcasting stations, activations, concerts, and monetization of the company's digital and other media properties. It is also engaged in the business of licensing music audio content and hosting and streaming such music audio content in different languages through applications dedicated to online music streaming under the name Gaana. The firm operates in a single segment which is Media and Entertainment, and derives its key revenue from the Indian market.

Entertainment Network (India) Headlines

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