PlantX Life (PlantX Life) ROC % : -63.12% (As of Dec. 2023)

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What is PlantX Life 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 %. PlantX Life's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -63.12%.

As of today (2024-05-25), PlantX Life's WACC % is 5.05%. PlantX Life's ROC % is -100.19% (calculated using TTM income statement data). PlantX Life earns returns that do not match up to its cost of capital. It will destroy value as it grows.

PlantX Life ROC % Historical Data

The historical data trend for PlantX Life'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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PlantX Life ROC % Chart

PlantX Life Annual Data

Trend

Jul19

Jul20

Mar21

Mar22

Mar23

ROC %

-226.93

-289.91

-163.25

PlantX Life Quarterly Data
	Jul19	Mar20	Jul20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial											-130.77	-182.86	-74.01	-86.66	-63.12

PlantX Life ROC % Calculation

PlantX Life's annualized Return on Capital (ROC %) for the fiscal year that ended in Mar. 2023 is calculated as:

	ROC % (A: Mar. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2022 )	+	Invested Capital (A: Mar. 2023 ))	/ count )
=	-12.852 * ( 1 - 0% )	/	( (9.415	+	6.33)	/ 2 )
=	-12.852	/	7.8725
=	-163.25 %

where

	Invested Capital		(A: Mar. 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	))
=	9.633	-	2.53	-	( 1.019	-	max(0, 5.206	-	2.894	+	1.019	))
=	9.415

	Invested Capital		(A: Mar. 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	))
=	5.521	-	6.67	-	( 0.116	-	max(0, 8.782	-	1.303	+	0.116	))
=	6.33

PlantX Life's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-4.944 * ( 1 - 0% )	/	( (7.88	+	7.786)	/ 2 )
=	-4.944	/	7.833
=	-63.12 %

where

	Invested Capital		(Q: Sep. 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	))
=	5.836	-	9.666	-	( 0.661	-	max(0, 13.396	-	1.686	+	0.661	))
=	7.88

	Invested Capital		(Q: Dec. 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	))
=	5.251	-	8.084	-	( 0.143	-	max(0, 11.749	-	1.13	+	0.143	))
=	7.786

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

PlantX Life (OTCPK:PLTXD) 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, PlantX Life's WACC % is 5.05%. PlantX Life's ROC % is -100.19% (calculated using TTM income statement data). PlantX Life 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.

PlantX Life ROC % Related Terms

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PlantX Life (PlantX Life) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » PlantX Life Inc (OTCPK:PLTXD) » Definitions » ROC %

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WNT0:Germany VEGA:Canada

Address

100 Park Royal South, Suite 504, West Vancouver, Vancouver, BC, CAN, V7T 1A2

Website

https://www.plantx.com

PlantX Life Inc is a digital-based, one-stop-shop, and distribution company with a fast-growing database with a plan to offer customers across North America. The company's operating segment includes Vegaste, PlantX Living Inc, Bloombox, Score (Squamish), Israel, Little West, Plant-Based Deli, New Deli, PlantX UK, PlantX Nevada, EH Coffee, Portfolio Coffee, and PlantX Midwest. The company uses its digital platform to build a community of like-minded consumers, and most importantly, provide education. Its successful enterprise is being built and fortified on partnerships with top nutritionists, chefs, and brands. It has a presence in the United States, United Kingdom, Canada, Israel, and Germany.