Thinking Hats Entertainment Solutions (NSE:THESL) ROC % : 52.04% (As of Mar. 2024)

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What is Thinking Hats Entertainment Solutions 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 %. Thinking Hats Entertainment Solutions's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 52.04%.

As of today (2025-04-04), Thinking Hats Entertainment Solutions's WACC % is 12.20%. Thinking Hats Entertainment Solutions's ROC % is 52.04% (calculated using TTM income statement data). Thinking Hats Entertainment Solutions 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.

Thinking Hats Entertainment Solutions ROC % Historical Data

The historical data trend for Thinking Hats Entertainment Solutions'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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Thinking Hats Entertainment Solutions ROC % Chart

Thinking Hats Entertainment Solutions Annual Data

Trend

Mar22

Mar23

Mar24

ROC %

-12.45

50.84

52.04

Thinking Hats Entertainment Solutions Semi-Annual Data
	Mar22	Mar23	Mar24
ROC %	-12.45	50.84	52.04

Thinking Hats Entertainment Solutions ROC % Calculation

Thinking Hats Entertainment Solutions'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 )
=	48.863 * ( 1 - 28.15% )	/	( (58.289	+	76.636)	/ 2 )
=	35.1080655	/	67.4625
=	52.04 %

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	))
=	145.681	-	39.5	-	( 61.776	-	max(0, 77.986	-	125.878	+	61.776	))
=	58.289

	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	))
=	240.322	-	66.7	-	( 104.842	-	max(0, 120.03	-	217.016	+	104.842	))
=	76.636

Thinking Hats Entertainment Solutions's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	48.863 * ( 1 - 28.15% )	/	( (58.289	+	76.636)	/ 2 )
=	35.1080655	/	67.4625
=	52.04 %

where

	Invested Capital		(Q: 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	))
=	145.681	-	39.5	-	( 61.776	-	max(0, 77.986	-	125.878	+	61.776	))
=	58.289

	Invested Capital		(Q: 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	))
=	240.322	-	66.7	-	( 104.842	-	max(0, 120.03	-	217.016	+	104.842	))
=	76.636

Note: The Operating Income data used here is one times the annual (Mar. 2024) data.

Thinking Hats Entertainment Solutions (NSE:THESL) 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, Thinking Hats Entertainment Solutions's WACC % is 12.20%. Thinking Hats Entertainment Solutions's ROC % is 52.04% (calculated using TTM income statement data). Thinking Hats Entertainment Solutions 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.

Thinking Hats Entertainment Solutions ROC % Related Terms

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Thinking Hats Entertainment Solutions Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Thinking Hats Entertainment Solutions Ltd (NSE:THESL) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

5th Floor, B 9 Pinnacle Business, Park Sector 3 Noida, Gautam Buddha Nagar, Noida, UP, IND, 201301

Website

https://www.thes.in

Thinking Hats Entertainment Solutions Ltd is a concept development, event design and production company that specializes in live events, corporate, MICE (Meetings, Incentives, Conferences and Exhibitions), social and virtual events to an OTT content production and experiential marketing company with a focus on content development, intellectual property curation and tech centric product development. The company operates in two reportable segment (Business segment) i.e. Event Management and OTT Sales. Key revenue is generated from Event Management segment.

Thinking Hats Entertainment Solutions Headlines

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