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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Healthier Choices Management's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2023 was -52.63%.
As of today (2024-04-30), Healthier Choices Management's WACC % is -170.34%. Healthier Choices Management's ROIC % is -43.46% (calculated using TTM income statement data). Healthier Choices Management 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.
The historical data trend for Healthier Choices Management'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.
Healthier Choices Management Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
ROIC % | Get a 7-Day Free Trial | -33.88 | -23.01 | -47.43 | -48.49 | -45.15 |
Healthier Choices Management Quarterly Data | ||||||||||||||||||||
Mar19 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | |
ROIC % | Get a 7-Day Free Trial | -73.70 | -27.23 | -44.63 | -49.45 | -52.63 |
For the Grocery Stores subindustry, Healthier Choices Management'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.
For the Retail - Defensive industry and Consumer Defensive sector, Healthier Choices Management's ROIC % distribution charts can be found below:
* The bar in red indicates where Healthier Choices Management's ROIC % falls into.
Healthier Choices Management'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 ) |
= | -11.872 * ( 1 - 0% ) | / | ( (29.139 | + | 23.451) | / 2 ) |
= | -11.872 | / | 26.295 | |||
= | -45.15 % |
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 | )) |
= | 55.255 | - | 5.715 | - | ( 22.912 | - | max(0, 9.907 | - | 30.308 | + | 22.912 | )) |
= | 29.139 |
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 | )) |
= | 30.97 | - | 8.025 | - | ( 5.081 | - | max(0, 12.231 | - | 11.725 | + | 5.081 | )) |
= | 23.451 |
Healthier Choices Management'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 ) |
= | -13.272 * ( 1 - 0% ) | / | ( (26.982 | + | 23.451) | / 2 ) |
= | -13.272 | / | 25.2165 | |||
= | -52.63 % |
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 | )) |
= | 37.098 | - | 5.804 | - | ( 7.14 | - | max(0, 9.286 | - | 13.598 | + | 7.14 | )) |
= | 26.982 |
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 | )) |
= | 30.97 | - | 8.025 | - | ( 5.081 | - | max(0, 12.231 | - | 11.725 | + | 5.081 | )) |
= | 23.451 |
Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.
* 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.
Healthier Choices Management (OTCPK:HCMC) 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, Healthier Choices Management's WACC % is -170.34%. Healthier Choices Management's ROIC % is -43.46% (calculated using TTM income statement data). Healthier Choices Management 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. Healthier Choices Management 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 %, 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.
Thank you for viewing the detailed overview of Healthier Choices Management's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Clifford J. Friedman | director | 5018 NW102 DRIVE, CORAL SPRINGS FL 33076 |
Anthony Panariello | director | 3214 SW 53RD COURT, HOLLYWOOD FL 33321 |
John Ollet | officer: Chief Financial Officer | 3800 NORTH 28TH WAY, HOLLYWOOD FL 33020 |
Christopher Santi | officer: President and COO | 3001 GRIFFIN RD, DANIA BEACH FL 33312 |
Jeffrey Elliot Holman | officer: Chief Executive Officer | 3341 N.E. 165TH STREET, NORTH MIAMI BEACH FL 33160 |
Gina Hicks | officer: Chief Financial Officer | 3001 GRIFFIN ROAD, DANIA BEACH FL 33312 |
Nik Raman | director | 171 MADISON AVENUE, 17TH FLOOR, NEW YORK NY 10016 |
William C Conway | director | 3001 GRIFFIN ROAD, DANIA BEACH FL 33312 |
Daniel Maclachlan | director | 2650 NORTH MILITARY TRAIL, SUITE 300, BOCA RATON FL 33431 |
James Joseph Martin | officer: Chief Financial Officer | 4400 BISCAYNE BLVD, SUITE # 670, MIAMI FL 33157 |
Gregory Brauser | director, officer: President | 4400 BISCAYNE BLVD #850, MIAMI FL 33137 |
Robert Swayman | director | 5022 NW 102 DRIVE, CORAL SPRINGS FL 33076 |
Angela Courtin | director | 3101 COLBY AVENEUE, LOS ANGELES CA 90066 |
Frank E Jaumot | director | 190 SE 19TH AVENUE, POMPANO BEACH FL 33060 |
Barrett Robert J Iii | director | 2075 REGENTS BLVD, WEST PALM BEACH FL 33409 |
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