Cannara Biotech (TSXV:LOVE) ROCE % : -9.10% (As of Feb. 2024)

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What is Cannara Biotech ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Cannara Biotech's annualized ROCE % for the quarter that ended in Feb. 2024 was -9.10%.

Cannara Biotech ROCE % Historical Data

The historical data trend for Cannara Biotech's ROCE % 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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Cannara Biotech ROCE % Chart

Cannara Biotech Annual Data

Trend

Aug18

Aug19

Aug20

Aug21

Aug22

Aug23

ROCE %

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-25.27

-20.58

0.06

4.50

9.25

Cannara Biotech Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROCE %	Get a 7-Day Free Trial															1.23	14.19	16.74	10.43	-9.10

Cannara Biotech ROCE % Calculation

Cannara Biotech's annualized ROCE % for the fiscal year that ended in Aug. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Aug. 2023 )		(A: Aug. 2022 )		(A: Aug. 2023 )
	=	10.829	/	( ( (125.617 - 11.861)	+	(141.522 - 21.183) )	/ 2 )
	=	10.829	/	( (113.756	+	120.339)	/ 2 )
	=	10.829	/	117.0475
	=	9.25 %

Cannara Biotech's ROCE % of for the quarter that ended in Feb. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Feb. 2024 )		(Q: Nov. 2023 )		(Q: Feb. 2024 )
	=	-9.48	/	( ( (144.822 - 22.262)	+	(145.825 - 60.09) )	/ 2 )
	=	-9.48	/	( ( 122.56	+	85.735 )	/ 2 )
	=	-9.48	/	104.1475
	=	-9.10 %

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

Cannara Biotech (TSXV:LOVE) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Cannara Biotech (TSXV:LOVE) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Cannara Biotech Inc (TSXV:LOVE) » Definitions » ROCE %

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LOVFF:USA 8CB0:Germany

Address

1055 West Georgia Street, Suite 2050, Vancouver, BC, CAN, V6E 3P3

Website

http://www.cannara.ca

Cannara Biotech Inc is a vertically integrated producer of premium-grade cannabis and cannabis-derivative products for Canadian markets. The company owns two mega Quebec-based facilities. The company operates in in two segments; Indoor cannabis operations segment which includes the cultivation, processing and sale of dried cannabis and cannabis derivatives for the Canadian market and the Real estate operations segment related to the Farnham and Valleyfield building. Majority of the revenue for the company is generated from its Cannabis operations segment. .

Executives