Radient Technologies (Radient Technologies) ROIC % : -2.87% (As of Dec. 2022)

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What is Radient Technologies ROIC %?

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Radient Technologies's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2022 was -2.87%.

As of today (2024-06-07), Radient Technologies's WACC % is 0.00%. Radient Technologies's ROIC % is 0.00% (calculated using TTM income statement data). Radient Technologies earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Radient Technologies ROIC % Historical Data

The historical data trend for Radient Technologies's ROIC % 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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Radient Technologies ROIC % Chart

Radient Technologies Annual Data

Trend

Dec13

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

ROIC %

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-214.90

-161.48

-58.64

-29.04

-15.14

Radient Technologies Quarterly Data
	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22
ROIC %	Get a 7-Day Free Trial															-18.51	-17.45	-10.57	-15.81	-2.87

Competitive Comparison of Radient Technologies's ROIC %

For the Drug Manufacturers - Specialty & Generic subindustry, Radient Technologies's ROIC %, along with its competitors' market caps and ROIC % 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.

Radient Technologies's ROIC % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Radient Technologies's ROIC % distribution charts can be found below:

* The bar in red indicates where Radient Technologies's ROIC % falls into.

Radient Technologies ROIC % Calculation

Radient Technologies's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Mar. 2022 is calculated as:

	ROIC % (A: Mar. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Mar. 2021 )	+	Invested Capital (A: Mar. 2022 ))	/ count )
=	-5.221 * ( 1 - 0% )	/	( (33.71	+	35.264)	/ 2 )
=	-5.221	/	34.487
=	-15.14 %

where

	Invested Capital		(A: Mar. 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	))
=	23.307	-	12.219	-	( 0.387	-	max(0, 25.026	-	2.404	+	0.387	))
=	33.71

	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	))
=	21.908	-	14.37	-	( 0.025	-	max(0, 29.779	-	2.053	+	0.025	))
=	35.264

Radient Technologies's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Dec. 2022 is calculated as:

	ROIC % (Q: Dec. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2022 )	+	Invested Capital (Q: Dec. 2022 ))	/ count )
=	-0.92 * ( 1 - 0% )	/	( (32.409	+	31.666)	/ 2 )
=	-0.92	/	32.0375
=	-2.87 %

where

	Invested Capital		(Q: Sep. 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	))
=	21.062	-	16.498	-	( 0.157	-	max(0, 30.79	-	2.945	+	0.157	))
=	32.409

	Invested Capital		(Q: Dec. 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	))
=	20.607	-	17.147	-	( 0.079	-	max(0, 31.154	-	2.948	+	0.079	))
=	31.666

Note: The Operating Income data used here is four times the quarterly (Dec. 2022) data.

Radient Technologies (OTCPK:RDDTF) ROIC % Explanation

ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. 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 ROIC % 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, Radient Technologies's WACC % is 0.00%. Radient Technologies's ROIC % is 0.00% (calculated using TTM income statement data).

Be Aware

Like ROE % and ROA %, ROIC % 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.

Radient Technologies ROIC % Related Terms

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Radient Technologies (Radient Technologies) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Radient Technologies Inc (OTCPK:RDDTF) » Definitions » ROIC %

Comparable Companies

Traded in Other Exchanges

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Address

4035 101 St. NW, Edmonton, AB, CAN, T6E 0A4

Website

https://www.radientinc.com

Radient Technologies Inc is a Canadian company engaged in manufacturing cannabis derivatives, formulations, and products. It has developed its extraction process, Microwave Assisted Processing (MAP), which is used for producing a consistent product at industrial-scale quantities. It provides its customers and partners with white-label extracts, formulations, and finished products that contain a broad spectrum of cannabinoid and terpene profiles. While it operates in Canada and is building an additional facility in Germany. It operates in a single segment namely the production and sale of cannabis-related retail products.