VIP Entertainment Technologies (TSXV:VIP) ROIC % : -230.77% (As of Dec. 2023)

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What is VIP Entertainment Technologies 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 %. VIP Entertainment Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -230.77%.

As of today (2024-05-13), VIP Entertainment Technologies's WACC % is 11.22%. VIP Entertainment Technologies's ROIC % is -868.06% (calculated using TTM income statement data). VIP Entertainment Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

VIP Entertainment Technologies ROIC % Historical Data

The historical data trend for VIP Entertainment Technologies'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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VIP Entertainment Technologies ROIC % Chart

VIP Entertainment Technologies Annual Data

Trend

Mar19

Mar20

Mar21

Mar22

Dec23

ROIC %

-61.90

-1,093.60

VIP Entertainment Technologies Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23
ROIC %	Get a 7-Day Free Trial															-400.92	-462.46	-2,240.00	-1,501.54	-230.77

Competitive Comparison of VIP Entertainment Technologies's ROIC %

For the Gambling subindustry, VIP Entertainment Technologies'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.

VIP Entertainment Technologies's ROIC % Distribution in the Travel & Leisure Industry

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

* The bar in red indicates where VIP Entertainment Technologies's ROIC % falls into.

VIP Entertainment Technologies ROIC % Calculation

VIP Entertainment Technologies'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: Mar. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-1.881 * ( 1 - 0% )	/	( (0	+	0.172)	/ 2 )
=	-1.881	/	0.086
=	-2,187.21 %

where

	Invested Capital		(A: Mar. 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	))
=	0.195	-	0.004	-	( 0.195	-	max(0, 0.004	-	0.195	+	0.195	))
=	0

	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	))
=	0.156	-	0.595	-	( 0.01	-	max(0, 0.767	-	0.156	+	0.01	))
=	0.172

VIP Entertainment Technologies's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROIC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-0.36 * ( 1 - 0% )	/	( (0.14	+	0.172)	/ 2 )
=	-0.36	/	0.156
=	-230.77 %

where

	Invested Capital		(Q: Sep. 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	))
=	0.225	-	0.612	-	( 0.001	-	max(0, 0.752	-	0.225	+	0.001	))
=	0.14

	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	))
=	0.156	-	0.595	-	( 0.01	-	max(0, 0.767	-	0.156	+	0.01	))
=	0.172

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

VIP Entertainment Technologies (TSXV:VIP) 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, VIP Entertainment Technologies's WACC % is 11.22%. VIP Entertainment Technologies's ROIC % is -868.06% (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.

VIP Entertainment Technologies ROIC % Related Terms

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VIP Entertainment Technologies (TSXV:VIP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » VIP Entertainment Technologies Inc (TSXV:VIP) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

VETIF:USA

Address

500 - 4th Avenue SW, Suite 3200, Calgary, AB, CAN, T2P 2V6

Website

https://www.vipentertaingroup.com

VIP Entertainment Technologies Inc is an entertainment and gaming company offering legal real-money betting on sports, casinos, poker, and esports events in online environments. The Company's principal business activity is the development of online poker and other sports betting products. It delivers sports betting, casino games, and poker through its VIP Bets platform.

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