WRIT Media Group (WRIT Media Group) ROC % : -3.21% (As of Dec. 2017)

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What is WRIT Media 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 %. WRIT Media Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2017 was -3.21%.

As of today (2024-05-15), WRIT Media Group's WACC % is 0.00%. WRIT Media Group's ROC % is 0.00% (calculated using TTM income statement data). WRIT Media Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

WRIT Media Group ROC % Historical Data

The historical data trend for WRIT Media 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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WRIT Media Group ROC % Chart

WRIT Media Group Annual Data

Trend

Mar08

Mar09

Mar10

Mar11

Mar12

Mar13

Mar14

Mar15

Mar16

Mar17

ROC %

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-130.03

-130.04

-273.98

-288.80

-23.17

WRIT Media Group Quarterly Data
	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17
ROC %	Get a 7-Day Free Trial															-12.42	-12.66	-25.50	-35.18	-3.21

WRIT Media Group ROC % Calculation

WRIT Media Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2017 is calculated as:

	ROC % (A: Mar. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2016 )	+	Invested Capital (A: Mar. 2017 ))	/ count )
=	-0.634 * ( 1 - 0% )	/	( (0.296	+	5.177)	/ 2 )
=	-0.634	/	2.7365
=	-23.17 %

where

	Invested Capital		(A: Mar. 2016 )
=	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	))
=	0.001	-	0.325	-	( 0	-	max(0, 0.621	-	0.001	+	0	))
=	0.296

	Invested Capital		(A: Mar. 2017 )
=	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	))
=	4.769	-	0.673	-	( 0.008	-	max(0, 1.09	-	0.009	+	0.008	))
=	5.177

WRIT Media Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2017 is calculated as:

	ROC % (Q: Dec. 2017 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2017 )	+	Invested Capital (Q: Dec. 2017 ))	/ count )
=	-0.172 * ( 1 - 0% )	/	( (4.933	+	5.781)	/ 2 )
=	-0.172	/	5.357
=	-3.21 %

where

	Invested Capital		(Q: Sep. 2017 )
=	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	))
=	4.572	-	0.434	-	( 0.048	-	max(0, 0.843	-	0.048	+	0.048	))
=	4.933

	Invested Capital		(Q: Dec. 2017 )
=	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	))
=	5.661	-	0.476	-	( 0.262	-	max(0, 1.827	-	1.231	+	0.262	))
=	5.781

Note: The Operating Income data used here is four times the quarterly (Dec. 2017) data.

WRIT Media Group (OTCPK:WRIT) 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, WRIT Media Group's WACC % is 0.00%. WRIT Media Group's ROC % is 0.00% (calculated using TTM income statement data). WRIT Media 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.

WRIT Media Group ROC % Related Terms

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WRIT Media Group (WRIT Media Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » WRIT Media Group Inc (OTCPK:WRIT) » Definitions » ROC %

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Address

1980 Festival Plaza Drive, Suite 300, Las Vegas, NV, USA, 89135

Website

https://www.writmediagroup.com

WRIT Media Group Inc is a part of the media industry. It is mainly engaged in producing films, television programs, and similar entertainment programs for various media formats. It is a content creation company, which produces, acquires, licenses, and distributes music-related content in three-dimensional (3-D), and ultra-high definition (4K) for initial worldwide digital broadcast into digitally-enabled movie theatres. It also licenses classic pre-Windows computer game libraries and adapts, and republishes titles for smartphones, game consoles, personal computers, tablets, and other television streaming devices.

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