Nitches (Nitches) ROC % : 41.61% (As of Feb. 2024)

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What is Nitches 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 %. Nitches's annualized return on capital (ROC %) for the quarter that ended in Feb. 2024 was 41.61%.

As of today (2024-05-24), Nitches's WACC % is 360.48%. Nitches's ROC % is -27.16% (calculated using TTM income statement data). Nitches earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Nitches ROC % Historical Data

The historical data trend for Nitches'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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Nitches ROC % Chart

Nitches Annual Data

Trend

Aug00

Aug01

Aug02

Aug03

Aug04

Aug05

Aug06

Aug07

Aug22

Aug23

ROC %

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-21.30

6.29

-0.85

-6.86

-127.49

Nitches Quarterly Data
	Nov05	Feb06	May06	Aug06	Nov06	Feb07	May07	Aug07	Nov07	Feb08	May08	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROC %	Get a 7-Day Free Trial															-74.48	-344.69	-73.86	-40.97	41.61

Nitches ROC % Calculation

Nitches's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2023 is calculated as:

	ROC % (A: Aug. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2022 )	+	Invested Capital (A: Aug. 2023 ))	/ count )
=	-0.436 * ( 1 - 0% )	/	( (0.124	+	0.56)	/ 2 )
=	-0.436	/	0.342
=	-127.49 %

where

	Invested Capital		(A: Aug. 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	))
=	0.217	-	0.022	-	( 0.071	-	max(0, 0.034	-	0.202	+	0.071	))
=	0.124

	Invested Capital		(A: Aug. 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	))
=	0.179	-	0.01	-	( 0	-	max(0, 0.535	-	0.144	+	0	))
=	0.56

Nitches's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2024 is calculated as:

	ROC % (Q: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2023 )	+	Invested Capital (Q: Feb. 2024 ))	/ count )
=	0.584 * ( 1 - 0% )	/	( (0.807	+	2)	/ 2 )
=	0.584	/	1.4035
=	41.61 %

where

	Invested Capital		(Q: Nov. 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	))
=	0.201	-	0.005	-	( 0.008	-	max(0, 0.756	-	0.145	+	0.008	))
=	0.807

	Invested Capital		(Q: Feb. 2024 )
=	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	))
=	0.213	-	0.005	-	( 0.007	-	max(0, 1.936	-	0.144	+	0.007	))
=	2

Note: The Operating Income data used here is four times the quarterly (Feb. 2024) data.

Nitches (OTCPK:NICH) 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, Nitches's WACC % is 360.48%. Nitches's ROC % is -27.16% (calculated using TTM income statement data). Nitches 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.

Nitches ROC % Related Terms

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Nitches (Nitches) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Nitches Inc (OTCPK:NICH) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1333 N Buffalo Drive, Unit 210, Las Vegas, NV, USA, 89128

Website

https://www.nitchescorp.com

Nitches Inc is focused on distribution and production of household, lifestyle, travel & leisure, and sports goods and clothing, with a long-term objective of bringing sustainable business practices to the supply chain for these products. The company is in the business of wholesale manufactured goods and white-labels them under the brand names of their Social Media Partners and also distributes them in an online department store, where its social media partners can sell their respective white labeled merchandise to their audience.

Executives

T. Jefferson Straub	director	C/O NITCHES, INC., 10280 CAMINO SANTA FE, SAN DIEGO CA 92121
Eitan X. Haber	officer: COO & Senior VP	C/O NITCHES, INC., 10280 CAMINO SANTA FE, SAN DIEGO CA 92121
Haresh Tharani	10 percent owner	1400 BROADWAY, 33RD FLOOR, NEW YORK NY 10018
Paul M Wyandt	director, officer: President & COO	10445 ABALONE LANDING, SAN DIEGO CA 92130
Price Eugene B Ii	director
Michael D Sholtis	director	10280 CAMINO SANTA FE, SAN DIEGO CA 92121