The Yumy Candy Co (STU:FWR0) ROC % : -172.40% (As of Jan. 2024)

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What is The Yumy Candy Co 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 %. The Yumy Candy Co's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was -172.40%.

As of today (2024-06-09), The Yumy Candy Co's WACC % is 9.06%. The Yumy Candy Co's ROC % is -325.16% (calculated using TTM income statement data). The Yumy Candy Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

The Yumy Candy Co ROC % Historical Data

The historical data trend for The Yumy Candy Co'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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The Yumy Candy Co ROC % Chart

The Yumy Candy Co Annual Data

Trend

Jan21

Jan22

Jan23

Jan24

ROC %

-365.44

-1,330.26

-416.71

The Yumy Candy Co Quarterly Data
	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROC %	Get a 7-Day Free Trial							-416.72	-589.05	-421.12	-173.47	-172.40

The Yumy Candy Co ROC % Calculation

The Yumy Candy Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Jan. 2024 is calculated as:

	ROC % (A: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jan. 2023 )	+	Invested Capital (A: Jan. 2024 ))	/ count )
=	-0.898 * ( 1 - 0% )	/	( (0.151	+	0.28)	/ 2 )
=	-0.898	/	0.2155
=	-416.71 %

where

	Invested Capital		(A: Jan. 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	))
=	0.264	-	1.094	-	( 0.07	-	max(0, 1.245	-	0.264	+	0.07	))
=	0.151

	Invested Capital		(A: Jan. 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	))
=	0.24	-	1.458	-	( 0.025	-	max(0, 1.738	-	0.24	+	0.025	))
=	0.28

The Yumy Candy Co's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2024 is calculated as:

	ROC % (Q: Jan. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2023 )	+	Invested Capital (Q: Jan. 2024 ))	/ count )
=	-0.556 * ( 1 - 0% )	/	( (0.365	+	0.28)	/ 2 )
=	-0.556	/	0.3225
=	-172.40 %

where

	Invested Capital		(Q: Oct. 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	))
=	0.376	-	1.378	-	( 0.151	-	max(0, 1.743	-	0.376	+	0.151	))
=	0.365

	Invested Capital		(Q: Jan. 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	))
=	0.24	-	1.458	-	( 0.025	-	max(0, 1.738	-	0.24	+	0.025	))
=	0.28

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

The Yumy Candy Co (STU:FWR0) 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, The Yumy Candy Co's WACC % is 9.06%. The Yumy Candy Co's ROC % is -325.16% (calculated using TTM income statement data). The Yumy Candy Co 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.

The Yumy Candy Co ROC % Related Terms

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The Yumy Candy Co (STU:FWR0) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » The Yumy Candy Co Inc (STU:FWR0) » Definitions » ROC %

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Traded in Other Exchanges

YUMFF:USA TYUM:Canada

Address

700 West Georgia Street, 25th Floor, Vancouver, BC, CAN, V7Y 1B3

Website

https://www.yumybear.com

The Yumy Candy Co Inc is an affordable health-conscious low-sugar plant-based confectionary company. It has developed a portfolio of healthier gelatine-free candies made from Non-GMO ingredients with proprietary recipes. All of its products are free of gelatin, soy, gluten, nuts, dairy, eggs, sugar alcohols, artificial sweeteners, and genetically modified organisms.

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