Alta Global Group (Alta Global Group) ROC % : -38.21% (As of Jun. 2023)

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What is Alta Global 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 %. Alta Global Group's annualized return on capital (ROC %) for the quarter that ended in Jun. 2023 was -38.21%.

As of today (2024-06-05), Alta Global Group's WACC % is 14.17%. Alta Global Group's ROC % is -38.21% (calculated using TTM income statement data). Alta Global Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Alta Global Group ROC % Historical Data

The historical data trend for Alta Global 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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Alta Global Group ROC % Chart

Alta Global Group Annual Data

Trend

Jun22

Jun23

ROC %

-99.75

-38.21

Alta Global Group Semi-Annual Data
	Jun22	Jun23
ROC %	-99.75	-38.21

Alta Global Group ROC % Calculation

Alta Global Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2023 is calculated as:

	ROC % (A: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2022 )	+	Invested Capital (A: Jun. 2023 ))	/ count )
=	-4.856 * ( 1 - 0% )	/	( (7.17	+	18.245)	/ 2 )
=	-4.856	/	12.7075
=	-38.21 %

where

	Invested Capital		(A: Jun. 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	))
=	2.195	-	1.399	-	( 0.401	-	max(0, 7.47	-	1.096	+	0.401	))
=	7.17

	Invested Capital		(A: Jun. 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	))
=	4.853	-	1.318	-	( 2.485	-	max(0, 18.805	-	4.095	+	2.485	))
=	18.245

Alta Global Group's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2023 is calculated as:

	ROC % (Q: Jun. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Jun. 2023 ))	/ count )
=	-4.856 * ( 1 - 0% )	/	( (7.17	+	18.245)	/ 2 )
=	-4.856	/	12.7075
=	-38.21 %

where

	Invested Capital		(Q: Jun. 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	))
=	2.195	-	1.399	-	( 0.401	-	max(0, 7.47	-	1.096	+	0.401	))
=	7.17

	Invested Capital		(Q: Jun. 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	))
=	4.853	-	1.318	-	( 2.485	-	max(0, 18.805	-	4.095	+	2.485	))
=	18.245

Note: The Operating Income data used here is one times the annual (Jun. 2023) data.

Alta Global Group (AMEX:MMA) 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, Alta Global Group's WACC % is 14.17%. Alta Global Group's ROC % is -38.21% (calculated using TTM income statement data). Alta Global 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.

Alta Global Group ROC % Related Terms

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Alta Global Group (Alta Global Group) Business Description

Industry

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Traded in Other Exchanges

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Address

Level 1, 29-33, Suite 1, The Corso, Manly, Sydney, NSW, AUS, 2095

Website

https://www.trainalta.com

Alta Global Group Ltd is a technology company that is enabling the global martial arts and combat sports industry to maximize the monetization opportunities available to the sector by increasing consumer participation in the sport and building upon existing community offerings within the sector. The Alta Platform serves as a comprehensive solution for martial arts and combat sports, offering a blend of four core products: the Warrior Training Program, UFC Fight Fit Program, Alta Academy, and the Alta Community.

Alta Global Group (Alta Global Group) Headlines

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