NNAX (New Momentum) ROIC % : -571.43% (As of Sep. 2024)

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What is New Momentum ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. New Momentum's annualized return on invested capital (ROIC %) for the quarter that ended in Sep. 2024 was -571.43%.

As of today (2024-12-15), New Momentum's WACC % is 13.67%. New Momentum's ROIC % is -203.09% (calculated using TTM income statement data). New Momentum earns returns that do not match up to its cost of capital. It will destroy value as it grows.

New Momentum ROIC % Historical Data

The historical data trend for New Momentum's ROIC % 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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New Momentum ROIC % Chart

New Momentum Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROIC %

-12,200.00

-676.19

-136.15

-178.04

New Momentum Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROIC %	Get a 7-Day Free Trial															-58.82	-236.96	-117.65	-225.35	-571.43

Competitive Comparison of New Momentum's ROIC %

For the Travel Services subindustry, New Momentum's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

New Momentum's ROIC % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, New Momentum's ROIC % distribution charts can be found below:

* The bar in red indicates where New Momentum's ROIC % falls into.

New Momentum ROIC % Calculation

New Momentum's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROIC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-0.3 * ( 1 - 0% )	/	( (0.21	+	0.127)	/ 2 )
=	-0.3	/	0.1685
=	-178.04 %

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	))
=	0.115	-	0.39	-	( 0.059	-	max(0, 0.6	-	0.115	+	0.059	))
=	0.21

	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	))
=	0.064	-	0.621	-	( 0.017	-	max(0, 0.722	-	0.038	+	0.017	))
=	0.127

New Momentum's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Sep. 2024 is calculated as:

	ROIC % (Q: Sep. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2024 )	+	Invested Capital (Q: Sep. 2024 ))	/ count )
=	-0.12 * ( 1 - 0% )	/	( (0.028	+	0.014)	/ 2 )
=	-0.12	/	0.021
=	-571.43 %

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	))
=	0.057	-	0.656	-	( 0.017	-	max(0, 0.67	-	0.043	+	0.017	))
=	0.028

	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	))
=	0.042	-	0.681	-	( 0.01	-	max(0, 0.688	-	0.035	+	0.01	))
=	0.014

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

New Momentum (OTCPK:NNAX) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, New Momentum's WACC % is 13.67%. New Momentum's ROIC % is -203.09% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

New Momentum ROIC % Related Terms

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New Momentum Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » New Momentum Corp (OTCPK:NNAX) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

150 Cecil Street, No.08-01, Singapore, SGP, 069543

Website

https://www.gagfare.com

New Momentum Corp develops and operates an online ticketing platform named Gagfare.com, which provides a ticketing system for individuals and agencies to search, book, and issue flight tickets and other services. It also offers its services through its app. The company records its revenue from booking income upon the ticket booking service is rendered to travelers. It also records its revenue from the sale of air tickets upon the confirmation and issuance of tickets to the travelers.

Executives

Leung Tin Lung David	director, 10 percent owner, officer: President, Sec. and Treasurer	112 NORTH CURRY STREET, CARSON CITY NV 89703
Kin Hon Chu	director, 10 percent owner	UNIT 19, 35/F., TOWER 1, MILLENNIUM CITY 1, NO. 388 KWUN TONG ROA, KWUN TONG, KOWLOON K3 00000
Michael Vardakis	director	234 7TH AVE, SALT LAKE CITY UT 84103
Amee Han Lombardi	director, 10 percent owner, officer: Pres; Sec; Treasurer	5925 STARCREST AVENUE, RENO NV 89523

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