VERTF (Vertiqal Studios) ROC % : 5.61% (As of Sep. 2024)

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What is Vertiqal Studios 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 %. Vertiqal Studios's annualized return on capital (ROC %) for the quarter that ended in Sep. 2024 was 5.61%.

As of today (2024-12-16), Vertiqal Studios's WACC % is 18.00%. Vertiqal Studios's ROC % is -19.48% (calculated using TTM income statement data). Vertiqal Studios earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Vertiqal Studios ROC % Historical Data

The historical data trend for Vertiqal Studios'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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Vertiqal Studios ROC % Chart

Vertiqal Studios Annual Data

Trend

Nov19

Nov20

Dec21

Dec22

Dec23

ROC %

-1.45

-23.26

-263.15

-34.73

-22.26

Vertiqal Studios Quarterly Data
	Nov19	Feb20	May20	Aug20	Nov20	Feb21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-8.78	-14.70	-37.92	-91.46	5.61

Vertiqal Studios ROC % Calculation

Vertiqal Studios'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 )
=	-4.903 * ( 1 - 7.95% )	/	( (37.776	+	2.768)	/ 2 )
=	-4.5132115	/	20.272
=	-22.26 %

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	))
=	36.484	-	2.683	-	( 0.41	-	max(0, 5.854	-	1.879	+	0.41	))
=	37.776

	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	))
=	5.526	-	2.507	-	( 0.867	-	max(0, 2.639	-	2.89	+	0.867	))
=	2.768

Vertiqal Studios'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 )
=	-1.792 * ( 1 - 112.07% )	/	( (2.171	+	5.543)	/ 2 )
=	0.2162944	/	3.857
=	5.61 %

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	))
=	4.463	-	1.903	-	( 0.935	-	max(0, 2.028	-	2.417	+	0.935	))
=	2.171

	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	))
=	4.248	-	2.358	-	( 0.363	-	max(0, 5.973	-	2.32	+	0.363	))
=	5.543

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

Vertiqal Studios (OTCPK:VERTF) 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, Vertiqal Studios's WACC % is 18.00%. Vertiqal Studios's ROC % is -19.48% (calculated using TTM income statement data). Vertiqal Studios 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.

Vertiqal Studios ROC % Related Terms

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Vertiqal Studios Business Description

Industry

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VRTS:Canada

Address

120 Carlton Street, Suite 405, Toronto, ON, CAN, M5A 4K2

Website

https://www.vertiqalstudios.com

Vertiqal Studios Corp is an owned and operated digital-channel network and video-production studio. Specializing in the creation of viral videos, Vertiqal produces and distributes 100+ videos daily across 66 owned-and-operated channels, utilizing TV economics to monetize TikTok and Instagram, and revenue-share with OTT platforms such as Snapchat. Its strategic focus is producing high-performing organic (not paid) video across its channels in order to continue building its audience.