ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Studio LSD's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 38.18%.
As of today (2026-06-27), Studio LSD's WACC % is 13.03%. Studio LSD's ROC % is 41.22% (calculated using TTM income statement data).
Studio LSD 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.
Studio LSD (NSE:STUDIOLSD) 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, Studio LSD's WACC % is 13.03%. Studio LSD's ROC % is 41.22% (calculated using TTM income statement data).
Studio LSD 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.
Studio LSD ROC % Related Terms
Studio LSD ROC % Historical Data
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The historical data trend for Studio LSD'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 (Mar. 2026) 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.
Studio LSD (NSE:STUDIOLSD) has a ROC % of 38.18% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Studio LSD and its competitors.
Is Studio LSD's ROC % too high?
Studio LSD's current ROC % is 38.18%. The Media - Diversified industry median ROC % is 1.41. Studio LSD's value of 38.18% is 2617.4% above this industry median. Overall, Studio LSD has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Studio LSD's ROC % compare to NFLX and DIS?
Studio LSD's ROC % of 38.18% can be compared against companies in the Media - Diversified industry. The industry median ROC % is 1.41. Studio LSD's value of 38.18% is 2617.4% above 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 a Media - Diversified company?
The median ROC % among Media - Diversified companies is 1.41, based on 1,016 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. Studio LSD's current ROC % of 38.18% is 2617.4% above 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 Studio LSD and its competitors. For the Media - Diversified industry, the median ROC % is 1.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Studio LSD's current ROC % is 38.18%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Studio LSD stock overvalued right now?
Studio LSD (NSE:STUDIOLSD) has a current ROC % of 38.18%. The current ROC % is 38.18% and 2617.4% above the Media - Diversified industry median of 1.41. Studio LSD's overall GF Score™ is 19/100 with 4 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 Studio LSD (NSE:STUDIOLSD), the current ROC % is 38.18% as of Mar. 2026. 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.
Studio LSD Ltd is a multimedia production house specializing in original and captivating stories, partnering with artists from the film and televisions industry. It is involved in every aspect of the content-making process, from idea to distribution and financing the projects, hiring actors and crew members, scouting locations, creating sets, managing the budgets, and overseeing the entire production and post-production process. The company is a production house specialised in creating compelling television content across various genres.
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