Accredited Solutions (Accredited Solutions) ROC % : -2.37% (As of Sep. 2023)

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What is Accredited Solutions 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 %. Accredited Solutions's annualized return on capital (ROC %) for the quarter that ended in Sep. 2023 was -2.37%.

As of today (2024-05-24), Accredited Solutions's WACC % is 58.71%. Accredited Solutions's ROC % is -2.20% (calculated using TTM income statement data). Accredited Solutions earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Accredited Solutions ROC % Historical Data

The historical data trend for Accredited Solutions'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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Accredited Solutions ROC % Chart

Accredited Solutions Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROC %

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-145.32

-12.56

-41.11

-6.73

Accredited Solutions Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
ROC %	Get a 7-Day Free Trial															-11.83	-6.78	-4.94	3.80	-2.37

Accredited Solutions ROC % Calculation

Accredited Solutions's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2022 is calculated as:

	ROC % (A: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2021 )	+	Invested Capital (A: Dec. 2022 ))	/ count )
=	-0.206 * ( 1 - 0% )	/	( (1.632	+	4.486)	/ 2 )
=	-0.206	/	3.059
=	-6.73 %

where

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	0.022	-	0.079	-	( 0	-	max(0, 1.711	-	0.022	+	0	))
=	1.632

	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	))
=	0.815	-	0.698	-	( 0.001	-	max(0, 4.69	-	0.321	+	0.001	))
=	4.486

Accredited Solutions's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2023 is calculated as:

	ROC % (Q: Sep. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Sep. 2023 ))	/ count )
=	-0.136 * ( 1 - 0% )	/	( (5.698	+	5.769)	/ 2 )
=	-0.136	/	5.7335
=	-2.37 %

where

	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	))
=	0.522	-	0.72	-	( 0.012	-	max(0, 5.946	-	0.05	+	0.012	))
=	5.698

	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	))
=	0.602	-	0.922	-	( 0.056	-	max(0, 6.226	-	0.137	+	0.056	))
=	5.769

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

Accredited Solutions (OTCPK:ASII) 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, Accredited Solutions's WACC % is 58.71%. Accredited Solutions's ROC % is -2.20% (calculated using TTM income statement data). Accredited Solutions 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.

Accredited Solutions ROC % Related Terms

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Accredited Solutions (Accredited Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » Accredited Solutions Inc (OTCPK:ASII) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

20311 Chartwell Center Drive, Suite 1469, Cornelius, NC, USA, 28031

Website

https://www.goodhemplivin.com

Accredited Solutions Inc formerly Good Hemp Inc is engaged in a hemp-derived CBD-infused line of consumer beverages sold under the Good Hemp brand. The company's current products include high-alkaline water products, hemp-based beverage products under the Good Hemp brand, and CBD softgels under the Good Hemp Wellness brand. Good Hemp products include two lines of hemp-based beverages. Good Hemp 2oh!, CANNA HEMP and CANNA are a line-up of refreshing, all-natural, good-for-you, ready-to-drink waters in six flavors: blueberry-blast, island coco-lime, kiwi-strawberry, lemon-twist, mango-fandango and Q-cumbermint. Good Hemp fizz is a line-up of carbonated refreshing, all-natural, good-for-you, ready-to-drink carbonated beverages in three flavors: blueberry-bam, mango-tango and citrus-twist.

Executives

Alessi William Rosario Jr	director, officer: Chief Executive Officer	20311 CHARTWELL CENTER DR., STE. 1469, CORNELIUS NC 28031
Christopher Phillip Chumas	director	7018 BROOKSTONE LANE, INDIAN LAND SC 29707
Daniel M. Ferris	director, 10 percent owner, officer: President, Sec'y & Treasurer	98 REDCLIFFE GARDEN, FLAT 3, LONDON X0 SW109HH
John Graham Rhoden	10 percent owner	15 VICTORIAN CRESCENT, TOWN MOOR, SOUTH YORKSHIRE, DONCASTER X0 DN2 58P