RBI Ventures (TSXV:RBI.H) ROC % : -229.79% (As of Dec. 2020)

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What is RBI Ventures 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 %. RBI Ventures's annualized return on capital (ROC %) for the quarter that ended in Dec. 2020 was -229.79%.

As of today (2024-06-09), RBI Ventures's WACC % is 0.00%. RBI Ventures's ROC % is 0.00% (calculated using TTM income statement data). RBI Ventures earns returns that do not match up to its cost of capital. It will destroy value as it grows.

RBI Ventures ROC % Historical Data

The historical data trend for RBI Ventures'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.

* Premium members only.

RBI Ventures ROC % Chart

RBI Ventures Annual Data

Trend

Jun11

Jun12

Jun13

Jun14

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

ROC %

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-21.36

-14.98

-15.91

-136.17

-68.09

RBI Ventures Quarterly Data
	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20
ROC %	Get a 7-Day Free Trial															-110.64	-93.62	-42.55	-59.57	-229.79

RBI Ventures ROC % Calculation

RBI Ventures's annualized Return on Capital (ROC %) for the fiscal year that ended in Jun. 2020 is calculated as:

	ROC % (A: Jun. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Jun. 2019 )	+	Invested Capital (A: Jun. 2020 ))	/ count )
=	-0.032 * ( 1 - 0% )	/	( (0.047	+	0.047)	/ 2 )
=	-0.032	/	0.047
=	-68.09 %

where

	Invested Capital		(A: Jun. 2019 )
=	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	))
=	0.028	-	0.064	-	( 0.013	-	max(0, 0.111	-	0.028	+	0.013	))
=	0.047

	Invested Capital		(A: Jun. 2020 )
=	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	))
=	0.026	-	0.079	-	( 0.021	-	max(0, 0.126	-	0.026	+	0.021	))
=	0.047

RBI Ventures's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2020 is calculated as:

	ROC % (Q: Dec. 2020 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2020 )	+	Invested Capital (Q: Dec. 2020 ))	/ count )
=	-0.108 * ( 1 - 0% )	/	( (0.047	+	0.047)	/ 2 )
=	-0.108	/	0.047
=	-229.79 %

where

	Invested Capital		(Q: Sep. 2020 )
=	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	))
=	0.025	-	0.069	-	( 0.02	-	max(0, 0.116	-	0.025	+	0.02	))
=	0.047

	Invested Capital		(Q: Dec. 2020 )
=	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	))
=	0.022	-	0.094	-	( 0.02	-	max(0, 0.141	-	0.022	+	0.02	))
=	0.047

Note: The Operating Income data used here is four times the quarterly (Dec. 2020) data.

RBI Ventures (TSXV:RBI.H) 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, RBI Ventures's WACC % is 0.00%. RBI Ventures's ROC % is 0.00% (calculated using TTM income statement data). RBI Ventures 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.

RBI Ventures ROC % Related Terms

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RBI Ventures (TSXV:RBI.H) Business Description

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GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » RBI Ventures Ltd (TSXV:RBI.H) » Definitions » ROC %

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Address

450-400 Burrard Street, Vancouver, BC, CAN, V6C 3A6

Website

http://www.russellbeer.com

RBI Ventures Ltd is looking into new business opportunities.

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