SMCE (SMC Entertainment) ROC % : -7.14% (As of Sep. 2024)

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What is SMC Entertainment 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 %. SMC Entertainment's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was -7.14%.

As of today (2024-12-11), SMC Entertainment's WACC % is 5.29%. SMC Entertainment's ROC % is -7.03% (calculated using TTM income statement data). SMC Entertainment earns returns that do not match up to its cost of capital. It will destroy value as it grows.

SMC Entertainment ROC % Historical Data

The historical data trend for SMC Entertainment'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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SMC Entertainment ROC % Chart

SMC Entertainment Annual Data

Trend

Dec99

Dec00

Dec01

Jun03

Dec22

Dec23

ROC %

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158.93

-211.70

-34.52

SMC Entertainment Quarterly Data
	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-7.66	-5.64	-26.77	-7.66	-7.14

SMC Entertainment ROC % Calculation

SMC Entertainment'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: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-0.921 * ( 1 - 0% )	/	( (2.146	+	3.19)	/ 2 )
=	-0.921	/	2.668
=	-34.52 %

where

	Invested Capital		(A: Dec. 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	))
=	0.308	-	0.518	-	( 0.002	-	max(0, 2.664	-	0.308	+	0.002	))
=	2.146

	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	))
=	0.371	-	0.575	-	( 0.007	-	max(0, 3.701	-	0.307	+	0.007	))
=	3.19

SMC Entertainment'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 )
=	-0.988 * ( 1 - 0% )	/	( (16.694	+	10.981)	/ 2 )
=	-0.988	/	13.8375
=	-7.14 %

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	))
=	0.095	-	0.628	-	( 0.001	-	max(0, 17.228	-	0.001	+	0.001	))
=	16.694

	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	))
=	0.096	-	0.649	-	( 0.002	-	max(0, 11.536	-	0.002	+	0.002	))
=	10.981

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

SMC Entertainment (OTCPK:SMCE) 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, SMC Entertainment's WACC % is 5.29%. SMC Entertainment's ROC % is -7.03% (calculated using TTM income statement data). SMC Entertainment 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.

SMC Entertainment ROC % Related Terms

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SMC Entertainment Business Description

Industry

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Address

9170 Glades Road, Suite 150, Boca Raton, FL, USA, 33434

Website

https://www.smceinc.com

SMC Entertainment Inc through its wholly owned subsidiary markets a software-as-a-service (SaaS) proprietary platform for Certified Public Accountants (CPAs) Financial Institutions and Registered Investment Advisors (RIAs). The Platform is a SaaS platform enabling users to see the developing market trends and use it to create customizable baskets if applicable. The Platform's IQ Engine enables the user to see changes occurring on the underlying indexes daily and provides alternatives based on machine learning (ML) and artificial intelligence (AI) which the user can incorporate into its decision-making process.