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American Cannabis Co (American Cannabis Co) ROA % : -14.57% (As of Sep. 2023)


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What is American Cannabis Co ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. American Cannabis Co's annualized Net Income for the quarter that ended in Sep. 2023 was $-0.63 Mil. American Cannabis Co's average Total Assets over the quarter that ended in Sep. 2023 was $4.31 Mil. Therefore, American Cannabis Co's annualized ROA % for the quarter that ended in Sep. 2023 was -14.57%.

The historical rank and industry rank for American Cannabis Co's ROA % or its related term are showing as below:

AMMJ' s ROA % Range Over the Past 10 Years
Min: -33333.33   Med: -65.58   Max: -3.44
Current: -3.44

During the past 13 years, American Cannabis Co's highest ROA % was -3.44%. The lowest was -33333.33%. And the median was -65.58%.

AMMJ's ROA % is ranked worse than
80.96% of 1082 companies
in the Business Services industry
Industry Median: 3.585 vs AMMJ: -3.44

American Cannabis Co ROA % Historical Data

The historical data trend for American Cannabis Co's ROA % 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.

* Premium members only.

American Cannabis Co ROA % Chart

American Cannabis Co Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -60.71 -24.36 -34.41 -47.10 -14.32

American Cannabis Co Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -35.05 41.12 -41.04 1.08 -14.57

Competitive Comparison of American Cannabis Co's ROA %

For the Consulting Services subindustry, American Cannabis Co's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


American Cannabis Co's ROA % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, American Cannabis Co's ROA % distribution charts can be found below:

* The bar in red indicates where American Cannabis Co's ROA % falls into.



American Cannabis Co ROA % Calculation

American Cannabis Co's annualized ROA % for the fiscal year that ended in Dec. 2022 is calculated as:

ROA %=Net Income (A: Dec. 2022 )/( (Total Assets (A: Dec. 2021 )+Total Assets (A: Dec. 2022 ))/ count )
=-0.633/( (4.223+4.616)/ 2 )
=-0.633/4.4195
=-14.32 %

American Cannabis Co's annualized ROA % for the quarter that ended in Sep. 2023 is calculated as:

ROA %=Net Income (Q: Sep. 2023 )/( (Total Assets (Q: Jun. 2023 )+Total Assets (Q: Sep. 2023 ))/ count )
=-0.628/( (4.452+4.169)/ 2 )
=-0.628/4.3105
=-14.57 %

* 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.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Sep. 2023) net income data. ROA % is displayed in the 30-year financial page.


American Cannabis Co  (OTCPK:AMMJ) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Sep. 2023 )
=Net Income/Total Assets
=-0.628/4.3105
=(Net Income / Revenue)*(Revenue / Total Assets)
=(-0.628 / 2.4)*(2.4 / 4.3105)
=Net Margin %*Asset Turnover
=-26.17 %*0.5568
=-14.57 %

Note: The Net Income data used here is four times the quarterly (Sep. 2023) net income data. The Revenue data used here is four times the quarterly (Sep. 2023) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months 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. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


American Cannabis Co ROA % Related Terms

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American Cannabis Co (American Cannabis Co) Business Description

Traded in Other Exchanges
N/A
Address
200 Union Street, Suite 200, Lakewood, CO, USA, 80228
American Cannabis Co Inc is engaged in the cannabis industry in states and countries where cannabis is regulated and/or has been decriminalized for medical use and/or legalized for recreational use. It provides advisory and consulting services specific to this industry, designs industry-specific products and facilities, and manages a strategic group partnership that offers both exclusive and non-exclusive customer products commonly used in the industry. It also is a licensed operator of three medical cannabis dispensaries and a cannabis cultivation facility in Colorado Springs, CO.
Executives
Tyler A Schloesser officer: Chief Operations Officer 9874 WEST LA SALLE PLACE, LAKEWOOD CO 80227
Ellis Lamar Smith director, 10 percent owner, officer: Cheif Development Officer 2590 WALNUT ST, DENVER CO 80205
Hollister Corey James Ariel director, 10 percent owner, officer: Chief Executive Officer 5316 RUSTIC AVE, FIRESTONE CO 80504
David Michael Godfrey officer: Principal Accounting Officer 5690 LOGAN STREET, DENVER CO 80237
Jon Workman officer: Vice President 2600 RAY DEAN ROAD, TUCKER AR 72168
Michael Schwanbeck officer: Chief Financial Officer 555 E. 19TH AVENUE, #2421, DENVER CO 80203
Tad M Mailander director 4811 49TH STREET, SAN DIEGO CA 92115
Terry Lynn Buffalo director, officer: CEO 3063 BRIGHTON BLVD, #918, DENVER CO 80216
Jesus Quintero officer: Former CFO 16860 SOUTHWEST 1ST STREET, PEMBROKE PINES FL 33027
Michael A Novielli director, 10 percent owner 100 MILL PLAIN ROAD, 3RD FLOOR, DANBURY CT 06811
Anthony J Baroud director, 10 percent owner, officer: Chief Technology Officer 211 EAST CIRCLE AVE, PROSPECT HEIGHTS IL 60070
Themistocles Psomiadis director, officer: Chief Executive Officer 1420 MIDTOWN AVE, APT 407, MOUNT PLEASANT SC 29464
Villas Boas Andrea Bezerra Arruda 10 percent owner ALAMEDA UAPIXANA, 278, SAO PAULO D5 04085-030
Douglas Leighton director 312 STUART ST, BOSTON MA 02116
Donald Brucker director, 10 percent owner, officer: VP Research & Development 110 WEST C STREET, SUITE 1300, SAN DIEGO CA 92101

American Cannabis Co (American Cannabis Co) Headlines

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