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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. NextPlay Technologies's annualized return on capital (ROC %) for the quarter that ended in Nov. 2022 was -16.18%.
As of today (2024-05-29), NextPlay Technologies's WACC % is 0.00%. NextPlay Technologies's ROC % is 0.00% (calculated using TTM income statement data). NextPlay Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for NextPlay Technologies'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.
NextPlay Technologies Annual Data | |||||
Trend | Feb21 | Feb22 | |||
ROC % | -14.80 | -48.19 |
NextPlay Technologies Quarterly Data | ||||||||
Feb21 | May21 | Aug21 | Nov21 | Feb22 | May22 | Aug22 | Nov22 | |
ROC % | Get a 7-Day Free Trial | - | -32.50 | -23.56 | -38.25 | -16.18 |
NextPlay Technologies's annualized Return on Capital (ROC %) for the fiscal year that ended in Feb. 2022 is calculated as:
ROC % (A: Feb. 2022 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (A: Feb. 2021 ) | + | Invested Capital (A: Feb. 2022 )) | / count ) |
= | -20.684 * ( 1 - -0.04% ) | / | ( (10.677 | + | 75.204) | / 2 ) |
= | -20.6922736 | / | 42.9405 | |||
= | -48.19 % |
where
Invested Capital | (A: Feb. 2021 ) | |||||||||||
= | 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 | )) |
= | 11.466 | - | 0.344 | - | ( 0.445 | - | max(0, 1.446 | - | 3.681 | + | 0.445 | )) |
= | 10.677 |
Invested Capital | (A: Feb. 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 | )) |
= | 99.753 | - | 18.291 | - | ( 6.932 | - | max(0, 27.502 | - | 33.76 | + | 6.932 | )) |
= | 75.204 |
NextPlay Technologies's annualized Return on Capital (ROC %) for the quarter that ended in Nov. 2022 is calculated as:
ROC % (Q: Nov. 2022 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Aug. 2022 ) | + | Invested Capital (Q: Nov. 2022 )) | / count ) |
= | -10.368 * ( 1 - 0% ) | / | ( (64.297 | + | 63.828) | / 2 ) |
= | -10.368 | / | 64.0625 | |||
= | -16.18 % |
where
Invested Capital | (Q: Aug. 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 | )) |
= | 101.469 | - | 34.146 | - | ( 3.026 | - | max(0, 52.537 | - | 59.291 | + | 3.026 | )) |
= | 64.297 |
Invested Capital | (Q: Nov. 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 | )) |
= | 103.85 | - | 37.111 | - | ( 2.911 | - | max(0, 57.545 | - | 61.07 | + | 2.911 | )) |
= | 63.828 |
Note: The Operating Income data used here is four times the quarterly (Nov. 2022) 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.
NextPlay Technologies (OTCPK:NXTP) 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, NextPlay Technologies's WACC % is 0.00%. NextPlay Technologies's ROC % is 0.00% (calculated using TTM income statement data). NextPlay Technologies 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.
Thank you for viewing the detailed overview of NextPlay Technologies's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Timothy James Sikora | officer: Chief Information Officer | 133 N POMPANO BEACH BLVD, #1401, POMPANO BEACH FL 33062 |
Nutthaphol Rungsakhon | officer: Interim CFO | 1560 SAWGRASS CORPORATE PARKWAY, 4TH FLOOR, SUNRISE FL 33323 |
Red Anchor Trading Corp. | 10 percent owner | MORGAN & MORGAN BUILDING, PASEA ESTATE, PO BOX 958, ROAD TOWN, TORTOLA D8 00000 |
Nextplay Holdings Llc | other: Group | 1013 CENTRE STREET, SUITE 403-B 87-1942169, WILMINGTON DE 19805 |
Nithinan Boonyawattanapisut | director, 10 percent owner, officer: Co-CEO | 999/194 MOOBAAN KESINEE VILLE, PRACHA UTIT ROAD, BANGKOK W1 10310 |
John Todd Bonner | director | 999/194 MOOBAAN KESINEE VILLE, PRACHA UTIT ROAD, BANGKOK W1 10310 |
Found Side Ltd | other: Group | PGCS LTD., 2ND FLOOR, THE QUADRANT, MANGLIER STREET, VICTORIA, MAHE T2 00000 |
Cern One Ltd | other: Group | MORGAN & MORGAN BUILDING, PASEA ESTATE, PO BOX 958, ROAD TOWN, TORTOLA D8 00000 |
Gardner Edward Terrence Jr. | director | 1560 SAWGRASS CORPORATE PARKWAY, SUITE 130, SUNRISE FL 33323 |
Farooq Moosa | director | 1560 SAWGRASS CORPORATE PARKWAY, SUITE 130, SUNRISE FL 33323 |
Yoshihiro Obata | director | 4-9-34-303 MINAMIAZABU, MINATO-KU, TOKYOI M0 106-0047 |
Carmen L Diges | director | 150 KING ST. WEST, SUITE 2800, TORONTO A6 M5H 1J9 |
Thanin Pornsiritivet | other: Part of 10% owner group | 5/150 WATCHARAPHON ROAD, THA RENG SUBDISTRICT, BANG KHEN DISTRICT, BANGKOK W1 10220 |
Andrew James Greaves | officer: Chief Operating Officer | HALLFARM, WINGERWORTH, CHESTERFIELD X0 S42 6PL |
Stacey Donna Riddell | director | 3210 S OCEAN BLVD., APT 602, HIGHLAND BEACH FL 33487 |
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