GURU Organic Energy (TSX:GURU) ROC % : -114.99% (As of Jan. 2024)

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What is GURU Organic Energy 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 %. GURU Organic Energy's annualized return on capital (ROC %) for the quarter that ended in Jan. 2024 was -114.99%.

As of today (2024-06-07), GURU Organic Energy's WACC % is 10.02%. GURU Organic Energy's ROC % is -137.64% (calculated using TTM income statement data). GURU Organic Energy earns returns that do not match up to its cost of capital. It will destroy value as it grows.

GURU Organic Energy ROC % Historical Data

The historical data trend for GURU Organic Energy'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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GURU Organic Energy ROC % Chart

GURU Organic Energy Annual Data

Trend

Oct20

Oct21

Oct22

Oct23

ROC %

27.31

-169.70

-199.30

-149.16

GURU Organic Energy Quarterly Data
	Sep19	Sep20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROC %	Get a 7-Day Free Trial										-105.76	-109.09	-143.85	-199.79	-114.99

GURU Organic Energy ROC % Calculation

GURU Organic Energy's annualized Return on Capital (ROC %) for the fiscal year that ended in Oct. 2023 is calculated as:

	ROC % (A: Oct. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Oct. 2022 )	+	Invested Capital (A: Oct. 2023 ))	/ count )
=	-13.714 * ( 1 - -0.05% )	/	( (10.801	+	7.597)	/ 2 )
=	-13.720857	/	9.199
=	-149.16 %

where

	Invested Capital		(A: Oct. 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	))
=	65.349	-	8.257	-	( 46.291	-	max(0, 8.664	-	60.059	+	46.291	))
=	10.801

	Invested Capital		(A: 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	))
=	48.65	-	7.227	-	( 33.826	-	max(0, 7.627	-	44.61	+	33.826	))
=	7.597

GURU Organic Energy'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 )
=	-9.288 * ( 1 - 1.38% )	/	( (7.597	+	8.335)	/ 2 )
=	-9.1598256	/	7.966
=	-114.99 %

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	))
=	48.65	-	7.227	-	( 33.826	-	max(0, 7.627	-	44.61	+	33.826	))
=	7.597

	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	))
=	47.786	-	8.281	-	( 31.17	-	max(0, 8.691	-	43.937	+	31.17	))
=	8.335

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

GURU Organic Energy (TSX:GURU) 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, GURU Organic Energy's WACC % is 10.02%. GURU Organic Energy's ROC % is -137.64% (calculated using TTM income statement data). GURU Organic Energy 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.

GURU Organic Energy ROC % Related Terms

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GURU Organic Energy (TSX:GURU) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Non-Alcoholic » GURU Organic Energy Corp (TSX:GURU) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

GUROF:USA

Address

602-7236 rue Waverly, Montreal, QC, CAN, H2R 0C2

Website

https://www.guruenergy.com

GURU Organic Energy Corp is a wellness company. The company is engaged in the business of manufacturing and marketing organic energy drinks. Geographically, it derives a majority of its revenue from Canada and also has a presence in the United States. Some of its product includes GURU Organic Energy - Yerba Mate; GURU Energy Water - Grapefruit; GURU Energy Water - Pomegranate; GURU Organic Energy - Matcha and others.

Executives

Eric Yves Graveline

10% Security Holder, Director