WINR (Simplicity Esports and Gaming Co) ROC %: -11.52% (As of Feb. 2023)


WINR Simplicity Esports and Gaming Co WINR
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What is Simplicity Esports and Gaming Co ROC %?

Simplicity Esports and Gaming Co WINR -99.00% 12 ROC % is -11.52% as of Feb. 2023. GuruFocus rates WINR with a GF Score™ of 12/100.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Simplicity Esports and Gaming Co's annualized return on capital (ROC %) for the quarter that ended in Feb. 2023 was -11.52%.

As of today (2026-06-26), Simplicity Esports and Gaming Co's WACC % is 0.00%. Simplicity Esports and Gaming Co's ROC % is 0.00% (calculated using TTM income statement data). Simplicity Esports and Gaming Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Simplicity Esports and Gaming Co  (OTCPK:WINR) 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, Simplicity Esports and Gaming Co's WACC % is 0.00%. Simplicity Esports and Gaming Co's ROC % is 0.00% (calculated using TTM income statement data). Simplicity Esports and Gaming Co 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.

Simplicity Esports and Gaming Co ROC % Related Terms

Simplicity Esports and Gaming Co ROC % Historical Data

* Premium members only.

The historical data trend for Simplicity Esports and Gaming Co'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.

Simplicity Esports and Gaming Co ROC % Chart

Simplicity Esports and Gaming Co Annual Data
Trend May17 May18 May19 May20 May21 May22
ROC %
Get a 7-Day Free Trial -2.00 -14.28 -32.12 -40.95 -64.43

Simplicity Esports and Gaming Co Quarterly Data
May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23
ROC % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -35.64 -77.55 -56.30 -40.30 -11.52
WINR
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Simplicity Esports and Gaming Co WINR
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Simplicity Esports and Gaming Co ROC % Calculation

Simplicity Esports and Gaming Co's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2022 is calculated as:

ROC % (A: May. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: May. 2021 ) + Invested Capital (A: May. 2022 ))/ count )
=-5.644 * ( 1 - 0% )/( (12.003 + 5.518)/ 2 )
=-5.644/8.7605
=-64.43 %

where

Invested Capital(A: May. 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))
=10.207 - 1.605 - ( 0.414 - max(0, 4.235 - 0.834+0.414))
=12.003

Invested Capital(A: May. 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))
=3.827 - 2.615 - ( 0.103 - max(0, 4.813 - 0.507+0.103))
=5.518

Simplicity Esports and Gaming Co's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2023 is calculated as:

ROC % (Q: Feb. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2022 ) + Invested Capital (Q: Feb. 2023 ))/ count )
=-0.82 * ( 1 - 0% )/( (7.674 + 6.568)/ 2 )
=-0.82/7.121
=-11.52 %

where

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))
=0.4 - 2.833 - ( 0.064 - max(0, 10.436 - 0.329+0.064))
=7.674

Invested Capital(Q: Feb. 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))
=0.282 - 2.908 - ( 0.029 - max(0, 9.448 - 0.254+0.029))
=6.568

Note: The Operating Income data used here is four times the quarterly (Feb. 2023) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -11.52% mean?
Simplicity Esports and Gaming Co (WINR) has a ROC % of -11.52% as of Feb. 2023. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Simplicity Esports and Gaming Co and its competitors.
Is Simplicity Esports and Gaming Co's ROC % too high?
Simplicity Esports and Gaming Co's current ROC % is -11.52%. Overall, Simplicity Esports and Gaming Co has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Simplicity Esports and Gaming Co's ROC % compare to ATVI and NTES?
Simplicity Esports and Gaming Co's ROC % of -11.52% can be compared against companies in the Interactive Media industry. The industry median ROC % is 1.88. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Interactive Media company?
The median ROC % among Interactive Media companies is 1.88, based on 560 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Simplicity Esports and Gaming Co and its competitors. For the Interactive Media industry, the median ROC % is 1.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simplicity Esports and Gaming Co's current ROC % is -11.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simplicity Esports and Gaming Co stock overvalued right now?
Simplicity Esports and Gaming Co (WINR) has a current ROC % of -11.52%. The current ROC % is -11.52%. Simplicity Esports and Gaming Co's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Simplicity Esports and Gaming Co (WINR), the current ROC % is -11.52% as of Feb. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Simplicity Esports and Gaming Co Business Description

Address 7000 W. Palmetto Park Road, Suite 505, Boca Raton, FL, USA, 33433
Simplicity Esports and Gaming Co is a North American esports organization managing esports teams domestically and internationally. The company through its subsidiaries owns and manages professional esports teams competing in games such as Overwatch, Apex Legends, PUBG, and more. The company owns Corporate and Franchised Gaming Centers.
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