Gremi Media (WAR:GME) ROC % : 2.65% (As of Mar. 2024)

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What is Gremi Media 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 %. Gremi Media's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was 2.65%.

As of today (2024-06-04), Gremi Media's WACC % is 2.09%. Gremi Media's ROC % is 5.07% (calculated using TTM income statement data). Gremi Media generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

Gremi Media ROC % Historical Data

The historical data trend for Gremi Media'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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Gremi Media ROC % Chart

Gremi Media Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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15.81

13.36

6.99

5.68

4.29

Gremi Media Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-0.79	6.31	4.73	6.39	2.65

Gremi Media ROC % Calculation

Gremi Media's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	6.624 * ( 1 - 21.09% )	/	( (114.205	+	129.31)	/ 2 )
=	5.2269984	/	121.7575
=	4.29 %

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	))
=	141.401	-	15.122	-	( 12.074	-	max(0, 33.685	-	48.264	+	12.074	))
=	114.205

	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	))
=	150.906	-	12.386	-	( 9.21	-	max(0, 30.359	-	43.866	+	9.21	))
=	129.31

Gremi Media's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	4.696 * ( 1 - 27.96% )	/	( (129.31	+	125.766)	/ 2 )
=	3.3829984	/	127.538
=	2.65 %

where

	Invested Capital		(Q: 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	))
=	150.906	-	12.386	-	( 9.21	-	max(0, 30.359	-	43.866	+	9.21	))
=	129.31

	Invested Capital		(Q: Mar. 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	))
=	155.998	-	17.201	-	( 13.031	-	max(0, 35.706	-	49.083	+	13.031	))
=	125.766

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

Gremi Media (WAR:GME) 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, Gremi Media's WACC % is 2.09%. Gremi Media's ROC % is 5.07% (calculated using TTM income statement data). Gremi Media generates higher returns on investment than it costs the company to raise the capital needed for that investment. It 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.

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.

Gremi Media ROC % Related Terms

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Gremi Media (WAR:GME) Business Description

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GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Gremi Media SA (WAR:GME) » Definitions » ROC %

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Address

ul. Prosta 51, Prosta Office Center, Warszawa, POL, 00-838

Website

https://www.gremimedia.pl

Gremi Media SA is a Poland based company, engages in offering economic and business press and an Internet portfolio for professionals and senior managers. It is a polish publisher offering specialized business and legal content in online and offline media. It presents daily commentaries and analyses relating to political, economic and legal events. It offers different services: Compress SA, specializing in creating comprehensive PR strategies and communication solutions.