Numinus Wellness (Numinus Wellness) ROC % : -179.73% (As of Feb. 2024)

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What is Numinus Wellness 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 %. Numinus Wellness's annualized return on capital (ROC %) for the quarter that ended in Feb. 2024 was -179.73%.

As of today (2024-06-06), Numinus Wellness's WACC % is 12.88%. Numinus Wellness's ROC % is -154.68% (calculated using TTM income statement data). Numinus Wellness earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Numinus Wellness ROC % Historical Data

The historical data trend for Numinus Wellness'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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Numinus Wellness ROC % Chart

Numinus Wellness Annual Data

Trend

Aug19

Aug20

Aug21

Aug22

Aug23

ROC %

-216.57

-265.79

-522.13

-259.53

-163.35

Numinus Wellness Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
ROC %	Get a 7-Day Free Trial															-156.81	-159.42	-154.11	-124.75	-179.73

Numinus Wellness ROC % Calculation

Numinus Wellness's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2023 is calculated as:

	ROC % (A: Aug. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Aug. 2022 )	+	Invested Capital (A: Aug. 2023 ))	/ count )
=	-20.002 * ( 1 - 0% )	/	( (14.079	+	10.411)	/ 2 )
=	-20.002	/	12.245
=	-163.35 %

where

	Invested Capital		(A: Aug. 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	))
=	40.746	-	2.25	-	( 25.582	-	max(0, 3.548	-	27.965	+	25.582	))
=	14.079

	Invested Capital		(A: Aug. 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	))
=	18.053	-	2.142	-	( 6.366	-	max(0, 3.443	-	8.943	+	6.366	))
=	10.411

Numinus Wellness's annualized Return on Capital (ROC %) for the quarter that ended in Feb. 2024 is calculated as:

	ROC % (Q: Feb. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Nov. 2023 )	+	Invested Capital (Q: Feb. 2024 ))	/ count )
=	-14.948 * ( 1 - 0% )	/	( (9.077	+	7.557)	/ 2 )
=	-14.948	/	8.317
=	-179.73 %

where

	Invested Capital		(Q: Nov. 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	))
=	14.215	-	1.818	-	( 3.451	-	max(0, 3.008	-	6.328	+	3.451	))
=	9.077

	Invested Capital		(Q: Feb. 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	))
=	14.281	-	2.011	-	( 4.898	-	max(0, 3.214	-	7.927	+	4.898	))
=	7.557

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

Numinus Wellness (OTCPK:NMNSF) 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, Numinus Wellness's WACC % is 12.88%. Numinus Wellness's ROC % is -154.68% (calculated using TTM income statement data). Numinus Wellness 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.

Numinus Wellness ROC % Related Terms

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Numinus Wellness (Numinus Wellness) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Numinus Wellness Inc (OTCPK:NMNSF) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

NUMIF:USA LR23:Germany NUMI:Canada

Address

801 - 33 Water Street, Vancouver, BC, CAN, V6B 1R4

Website

https://www.numinus.ca

Numinus Wellness Inc develops proprietary, psychedelic-centered, therapeutic products and services through its laboratory and research & development processes. The company's clinic network consists of Numinus Health, Mindspace Services, and the Neurology Center of Toronto. Its services include Ketamine-assisted psychotherapy for depression, neurological care, psychotherapy, and counseling by registered psychologists among others. The company's operating segments are; Clinical research operations, Canadian clinic network, US clinic network and Corporate. The majority of the revenue for the company is generated from US clinic network segment. Geographically, the company has its presence in United States and Canada.