Urban Barns Foods (Urban Barns Foods) ROC % : -18.98% (As of Jan. 2016)

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What is Urban Barns Foods 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 %. Urban Barns Foods's annualized return on capital (ROC %) for the quarter that ended in Jan. 2016 was -18.98%.

As of today (2024-06-06), Urban Barns Foods's WACC % is 0.00%. Urban Barns Foods's ROC % is 0.00% (calculated using TTM income statement data). Urban Barns Foods earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Urban Barns Foods ROC % Historical Data

The historical data trend for Urban Barns Foods'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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Urban Barns Foods ROC % Chart

Urban Barns Foods Annual Data

Trend

Jul08

Jul09

Jul10

Jul11

Jul12

Jul13

Jul14

Jul15

ROC %

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-30.91

-184.44

-369.94

-280.81

-190.06

Urban Barns Foods Quarterly Data
	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13	Oct13	Jan14	Apr14	Jul14	Oct14	Jan15	Apr15	Jul15	Oct15	Jan16
ROC %	Get a 7-Day Free Trial															-161.02	-149.15	-98.56	-45.95	-18.98

Urban Barns Foods ROC % Calculation

Urban Barns Foods's annualized Return on Capital (ROC %) for the fiscal year that ended in Jul. 2015 is calculated as:

	ROC % (A: Jul. 2015 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jul. 2014 )	+	Invested Capital (A: Jul. 2015 ))	/ count )
=	-1.817 * ( 1 - 0% )	/	( (0.691	+	1.221)	/ 2 )
=	-1.817	/	0.956
=	-190.06 %

where

	Invested Capital		(A: Jul. 2014 )
=	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	))
=	0.83	-	0.182	-	( 0.076	-	max(0, 0.244	-	0.201	+	0.076	))
=	0.691

	Invested Capital		(A: Jul. 2015 )
=	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	))
=	0.651	-	0.502	-	( 0.007	-	max(0, 1.143	-	0.071	+	0.007	))
=	1.221

Urban Barns Foods's annualized Return on Capital (ROC %) for the quarter that ended in Jan. 2016 is calculated as:

	ROC % (Q: Jan. 2016 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Oct. 2015 )	+	Invested Capital (Q: Jan. 2016 ))	/ count )
=	-0.292 * ( 1 - 0% )	/	( (2.122	+	0.955)	/ 2 )
=	-0.292	/	1.5385
=	-18.98 %

where

	Invested Capital		(Q: Oct. 2015 )
=	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	))
=	0.62	-	0.673	-	( 0.001	-	max(0, 2.237	-	0.062	+	0.001	))
=	2.122

	Invested Capital		(Q: Jan. 2016 )
=	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	))
=	0.566	-	0.687	-	( 0.004	-	max(0, 1.135	-	0.059	+	0.004	))
=	0.955

Note: The Operating Income data used here is four times the quarterly (Jan. 2016) data.

Urban Barns Foods (OTCPK:URBF) 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, Urban Barns Foods's WACC % is 0.00%. Urban Barns Foods's ROC % is 0.00% (calculated using TTM income statement data). Urban Barns Foods 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.

Urban Barns Foods ROC % Related Terms

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Urban Barns Foods (Urban Barns Foods) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » Urban Barns Foods Inc (OTCPK:URBF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

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Address

13000 Chemin Bélanger, Mirabel, QC, CAN, J7J 2N8

Website

http://www.urbanbarns.net/

Urban Barns Foods Inc is a produce production company, or grower, that aims to be the supplier of choice for fresh, locally grown, Kosher-certified, organic, or high-quality fruits and vegetables for urban consumers. The company's strategy is to develop a series of urban barns that are used to grow fruits and vegetables in several urban centers, beginning with Montreal, Canada. They offer multiple varieties of lettuce, basil, and various herbs. The company derives revenue from the sale of agricultural products.

Executives

Jeremy Kendall

director

17121 MISSISSAUGA RD, BELFOUNTAIN A6 00000

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