MJ Harvest (MJ Harvest) ROC % : -18.78% (As of Feb. 2023)

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What is MJ Harvest 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 %. MJ Harvest's annualized return on capital (ROC %) for the quarter that ended in Feb. 2023 was -18.78%.

As of today (2024-06-05), MJ Harvest's WACC % is 0.00%. MJ Harvest's ROC % is 0.00% (calculated using TTM income statement data). MJ Harvest earns returns that do not match up to its cost of capital. It will destroy value as it grows.

MJ Harvest ROC % Historical Data

The historical data trend for MJ Harvest'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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MJ Harvest ROC % Chart

MJ Harvest Annual Data

Trend

May19

May20

May21

May22

ROC %

-332.48

-312.37

-100.64

-72.20

MJ Harvest Quarterly Data
	Nov18	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23
ROC %	Get a 7-Day Free Trial													-28.43	-77.78	-22.23	-18.01	-18.78

MJ Harvest ROC % Calculation

MJ Harvest's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2022 is calculated as:

	ROC % (A: May. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2021 )	+	Invested Capital (A: May. 2022 ))	/ count )
=	-1.87 * ( 1 - 0% )	/	( (1.493	+	3.687)	/ 2 )
=	-1.87	/	2.59
=	-72.20 %

where

	Invested Capital		(A: May. 2021 )
=	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	))
=	1.294	-	0.182	-	( 0.123	-	max(0, 0.532	-	0.151	+	0.123	))
=	1.493

	Invested Capital		(A: May. 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	))
=	3.791	-	0.519	-	( 0.041	-	max(0, 0.673	-	0.258	+	0.041	))
=	3.687

MJ Harvest's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2023 is calculated as:

	ROC % (Q: Feb. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2022 )	+	Invested Capital (Q: Feb. 2023 ))	/ count )
=	-2.252 * ( 1 - 0% )	/	( (11.431	+	12.555)	/ 2 )
=	-2.252	/	11.993
=	-18.78 %

where

	Invested Capital		(Q: Nov. 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	))
=	8.815	-	1.363	-	( 0.05	-	max(0, 5.038	-	1.059	+	0.05	))
=	11.431

	Invested Capital		(Q: Feb. 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	))
=	8.934	-	2.011	-	( 0.162	-	max(0, 6.969	-	1.337	+	0.162	))
=	12.555

Note: The Operating Income data used here is four times the quarterly (Feb. 2023) data.

MJ Harvest (OTCPK:MJHI) 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, MJ Harvest's WACC % is 0.00%. MJ Harvest's ROC % is 0.00% (calculated using TTM income statement data). MJ Harvest 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.

MJ Harvest ROC % Related Terms

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MJ Harvest (MJ Harvest) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Distribution » MJ Harvest Inc (OTCPK:MJHI) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

9205 West Russell Road, Suite 240, Las Vegas, NV, USA, 89139

Website

https://www.mjharvestinc.com

MJ Harvest Inc cultivates, harvests, manufactures, and sells cannabis products. It also acquires and markets products and technologies that are designed to benefit growers and processors in the horticultural and agricultural industries.

Executives

David Tobias	director	PO BOX 1602, MESQUITE NV 89024
Jerry Cornwell	director, 10 percent owner	14424 SE 78TH WAY, NEW CASTLE WA 98059
Brad E Herr	officer: CFO	5413 S SAYBROOK LANE, SPOKANE WA 99223
Patrick Bilton	director, 10 percent owner, officer: Chief Executive Officer	9205 W RUSSELL ROAD, SUITE 240, LAS VEGAS NV 89139