GSRX Industries (GSRX Industries) ROC % : -138.44% (As of Sep. 2020)

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What is GSRX Industries 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 %. GSRX Industries's annualized return on capital (ROC %) for the quarter that ended in Sep. 2020 was -138.44%.

As of today (2024-05-17), GSRX Industries's WACC % is 0.00%. GSRX Industries's ROC % is 0.00% (calculated using TTM income statement data). GSRX Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.

GSRX Industries ROC % Historical Data

The historical data trend for GSRX Industries'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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GSRX Industries ROC % Chart

GSRX Industries Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

ROC %

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-14.53

-12.89

-668.88

-243.98

-338.00

GSRX Industries Quarterly Data
	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20
ROC %	Get a 7-Day Free Trial															-414.73	-26.19	10.32	14.76	-138.44

GSRX Industries ROC % Calculation

GSRX Industries'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 )
=	-22.467 * ( 1 - 0% )	/	( (6.562	+	6.732)	/ 2 )
=	-22.467	/	6.647
=	-338.00 %

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	))
=	8.601	-	0.725	-	( 1.314	-	max(0, 0.725	-	2.25	+	1.314	))
=	6.562

	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	))
=	8.047	-	1.239	-	( 0.076	-	max(0, 1.834	-	2.609	+	0.076	))
=	6.732

GSRX Industries's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2020 is calculated as:

	ROC % (Q: Sep. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2020 )	+	Invested Capital (Q: Sep. 2020 ))	/ count )
=	-7.864 * ( 1 - 0% )	/	( (6.582	+	4.779)	/ 2 )
=	-7.864	/	5.6805
=	-138.44 %

where

	Invested Capital		(Q: Jun. 2020 )
=	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	))
=	7.196	-	0.692	-	( 0.05	-	max(0, 1.129	-	1.051	+	0.05	))
=	6.582

	Invested Capital		(Q: Sep. 2020 )
=	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	))
=	5.585	-	1.569	-	( 0	-	max(0, 1.913	-	1.15	+	0	))
=	4.779

Note: The Operating Income data used here is four times the quarterly (Sep. 2020) data.

GSRX Industries (OTCPK:GSRX) 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, GSRX Industries's WACC % is 0.00%. GSRX Industries's ROC % is 0.00% (calculated using TTM income statement data). GSRX Industries 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.

GSRX Industries ROC % Related Terms

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GSRX Industries (GSRX Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » GSRX Industries Inc (OTCPK:GSRX) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Building No. 3, int. Jose Efron Avenue, P.R. 606, Dorado, PRI, 00646

Website

http://www.greenspiritrx.com

GSRX Industries Inc is a vertically integrated retail, production, and cultivation firm which provides unique medical and adult-use cannabis products. The dispensaries are located in Puerto Rico and California. The company generates revenue by selling medical cannabis, edibles, and paraphernalia, including, oils, lotions, THC pills, vaporizers, rigs, grinders, t-shirts, hats, logo items, and bongs and pipes with a vaporizer. Its geographical segments include California, Tennessee, Texas, and Puerto Rico, out of which a vast majority is generated from Puerto Rico.

Executives

Geoffrey Alison	director, officer: President and Secretary	122 OCEAN PARK BLVD., SUITE 307, SANTA MONICA CA 90405
Fountainhead Capital Management Ltd	10 percent owner	PORTMAN HOUSE HUE STREET, ST HELIER, JERSEY CHANNEL ISLANDS X0 JE45RP
Henry C. Casden	director, officer: CEO	74090 EL PASEO SUITE 205 PALM DESERT CA 92260