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Stargaze Entertainment Group (Stargaze Entertainment Group) ROC % : -2.00% (As of Aug. 2023)


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What is Stargaze Entertainment Group 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 %. Stargaze Entertainment Group's annualized return on capital (ROC %) for the quarter that ended in Aug. 2023 was -2.00%.

As of today (2024-06-20), Stargaze Entertainment Group's WACC % is 11.36%. Stargaze Entertainment Group's ROC % is 0.00% (calculated using TTM income statement data). Stargaze Entertainment Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Stargaze Entertainment Group ROC % Historical Data

The historical data trend for Stargaze Entertainment Group'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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Stargaze Entertainment Group ROC % Chart

Stargaze Entertainment Group Annual Data
Trend
ROC %

Stargaze Entertainment Group Semi-Annual Data
Aug23
ROC % -2.00

Stargaze Entertainment Group ROC % Calculation

Stargaze Entertainment Group's annualized Return on Capital (ROC %) for the fiscal year that ended in . 20 is calculated as:

ROC % (A: . 20 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: . 20 ) + Invested Capital (A: . 20 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Invested Capital(A: . 20 )
=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))
= - - ( - max(0, - +))
=

Invested Capital(A: . 20 )
=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))
= - - ( - max(0, - +))
=

Stargaze Entertainment Group's annualized Return on Capital (ROC %) for the quarter that ended in Aug. 2023 is calculated as:

ROC % (Q: Aug. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: . 20 ) + Invested Capital (Q: Aug. 2023 ))/ count )
= * ( 1 - % )/( ( + )/ )
=/
= %

where

Invested Capital(Q: . 20 )
=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))
= - - ( - max(0, - +))
=

Invested Capital(Q: Aug. 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))
= - - ( - max(0, - +))
=

Note: The Operating Income data used here is one times the annual (Aug. 2023) 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.

Stargaze Entertainment Group  (OTCPK:STGZ) 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, Stargaze Entertainment Group's WACC % is 11.36%. Stargaze Entertainment Group's ROC % is 0.00% (calculated using TTM income statement data). Stargaze Entertainment Group 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.

Stargaze Entertainment Group ROC % Related Terms

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Stargaze Entertainment Group (Stargaze Entertainment Group) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Stargaze Entertainment Group Inc (OTCPK:STGZ) » Definitions » ROC %
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Traded in Other Exchanges
N/A
Address
334 Cornelia Street, Suite 279, Plattsburgh, NY, USA, 12901
Website
https://www.stargazeentertainmentgroup.com
Stargaze Entertainment Group Inc is an entertainment production and distribution company. It focuses on the creation and distribution of films, music and live streaming of shows. The company's other services include copyrights, records production, and distribution, music publication.