WBTN (Webtoon Entertainment) ROC % : -8.06% (As of Dec. 2024)

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What is Webtoon 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 %. Webtoon Entertainment's annualized return on capital (ROC %) for the quarter that ended in Dec. 2024 was -8.06%.

As of today (2025-03-14), Webtoon Entertainment's WACC % is 10.10%. Webtoon Entertainment's ROC % is -7.47% (calculated using TTM income statement data). Webtoon Entertainment earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Webtoon Entertainment ROC % Historical Data

The historical data trend for Webtoon 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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Webtoon Entertainment ROC % Chart

Webtoon Entertainment Annual Data

Trend

Dec22

Dec23

Dec24

ROC %

-7.37

-2.00

-7.62

Webtoon Entertainment Quarterly Data
	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
ROC %	Get a 7-Day Free Trial				1.15	1.96	-24.02	-4.75	-8.06

Webtoon Entertainment ROC % Calculation

Webtoon Entertainment's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2024 is calculated as:

	ROC % (A: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2023 )	+	Invested Capital (A: Dec. 2024 ))	/ count )
=	-97.892 * ( 1 - -2.41% )	/	( (1411.252	+	1219.226)	/ 2 )
=	-100.2511972	/	1315.239
=	-7.62 %

where

	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	))
=	1776.605	-	188.6	-	( 251.62	-	max(0, 316.074	-	492.827	+	251.62	))
=	1411.252

	Invested Capital		(A: Dec. 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	))
=	1935.334	-	192.96	-	( 598.73	-	max(0, 313.224	-	836.372	+	598.73	))
=	1219.226

Webtoon Entertainment's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2024 is calculated as:

	ROC % (Q: Dec. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2024 )	+	Invested Capital (Q: Dec. 2024 ))	/ count )
=	-99.596 * ( 1 - -5.05% )	/	( (1375.35	+	1219.226)	/ 2 )
=	-104.625598	/	1297.288
=	-8.06 %

where

	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	))
=	2125.742	-	222.94	-	( 610.359	-	max(0, 353.953	-	881.405	+	610.359	))
=	1375.35

	Invested Capital		(Q: Dec. 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	))
=	1935.334	-	192.96	-	( 598.73	-	max(0, 313.224	-	836.372	+	598.73	))
=	1219.226

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

Webtoon Entertainment (NAS:WBTN) 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, Webtoon Entertainment's WACC % is 10.10%. Webtoon Entertainment's ROC % is -7.47% (calculated using TTM income statement data). Webtoon 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.

Webtoon Entertainment ROC % Related Terms

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Webtoon Entertainment Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Webtoon Entertainment Inc (NAS:WBTN) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

5700 Wilshire Boulevard, Suite 220, Los Angeles, CA, USA, 90036

Website

https://www.webtoons.com

Webtoon Entertainment Inc is a global storytelling platform where a vibrant community of creators and users discover, create and share new content. It has pioneered a cultural movement by revolutionizing the storytelling format and democratizing content creation and publication connecting 24 million creators with approximately 170 million monthly active users in over 150 countries around the world.