Agritek Holdings (Agritek Holdings) ROC % : -104.07% (As of Dec. 2019)

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What is Agritek Holdings 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 %. Agritek Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2019 was -104.07%.

As of today (2024-05-10), Agritek Holdings's WACC % is 0.00%. Agritek Holdings's ROC % is 0.00% (calculated using TTM income statement data). Agritek Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Agritek Holdings ROC % Historical Data

The historical data trend for Agritek Holdings'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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Agritek Holdings ROC % Chart

Agritek Holdings Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

ROC %

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-87.46

-41.43

-39.52

-29.23

-174.49

Agritek Holdings Quarterly Data
	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19
ROC %	Get a 7-Day Free Trial															-31.65	-22.11	-282.67	-117.61	-104.07

Agritek Holdings ROC % Calculation

Agritek Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2019 is calculated as:

	ROC % (A: Dec. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2018 )	+	Invested Capital (A: Dec. 2019 ))	/ count )
=	-5.828 * ( 1 - 0% )	/	( (2.779	+	3.901)	/ 2 )
=	-5.828	/	3.34
=	-174.49 %

where

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	0.569	-	1.194	-	( 0.086	-	max(0, 3.52	-	0.116	+	0.086	))
=	2.779

	Invested Capital		(A: Dec. 2019 )
=	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	))
=	0.742	-	2.196	-	( 0.132	-	max(0, 5.586	-	0.231	+	0.132	))
=	3.901

Agritek Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2019 is calculated as:

	ROC % (Q: Dec. 2019 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2019 )	+	Invested Capital (Q: Dec. 2019 ))	/ count )
=	-5.844 * ( 1 - 0% )	/	( (7.33	+	3.901)	/ 2 )
=	-5.844	/	5.6155
=	-104.07 %

where

	Invested Capital		(Q: Sep. 2019 )
=	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	))
=	1.411	-	2.161	-	( 0.342	-	max(0, 8.447	-	0.367	+	0.342	))
=	7.33

	Invested Capital		(Q: Dec. 2019 )
=	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	))
=	0.742	-	2.196	-	( 0.132	-	max(0, 5.586	-	0.231	+	0.132	))
=	3.901

Note: The Operating Income data used here is four times the quarterly (Dec. 2019) data.

Agritek Holdings (OTCPK:AGTK) 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, Agritek Holdings's WACC % is 0.00%. Agritek Holdings's ROC % is 0.00% (calculated using TTM income statement data). Agritek Holdings 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.

Agritek Holdings ROC % Related Terms

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Agritek Holdings (Agritek Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » Real Estate » Agritek Holdings Inc (OTCPK:AGTK) » Definitions » ROC %

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Address

777 Brickell Avenue, Suite 500, Miami, FL, USA, 33131

Website

http://www.agritekholdings.com

Agritek Holdings Inc is a U.S based fully integrated, active investor and operator in the legal cannabis sector. The company acquires and leases real estate, then leases or sub-leases the real estate to licensed marijuana operators. It is focused on three high-value segments of the cannabis market, including real estate investment, intellectual property brands; and infrastructure, with operations in three states: Colorado, Washington State, and California as well as Canada and Puerto Rico. The firm invests its capital through real estate holdings, licensing agreements, royalties, and equity in acquisition operations.

Executives

Barry Michael Friedman	director, 10 percent owner, officer: CEO, Secretary	319 CLEMATIS STREET, SUITE 1008, WEST PALM BEACH FL 33401
Barry S Hollander	director, officer: CFO	319 CLEMATIS ST, SUITE 812, WEST PALM BEACH FL 33401
Vasan Thatham	other: Former Officer	C/O FRONTLINE COMMUNICATIONS CORP, 1 BLUE HILL PLAZA, PO BOX 1548, PEARLE RIVER NY 10965
Cole Hatchard Stephen J	director, officer: CEO	C/O FRONTLINE COMMUNICATIONS CORP, ONE BLUE HILL PLAZA, PO BOX 1548, PEARLE RIVER NY 10965
Miguel Madero	director