Charlottes Web Holdings (TSX:CWEB) ROCE % : -29.12% (As of Dec. 2023)

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What is Charlottes Web Holdings ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Charlottes Web Holdings's annualized ROCE % for the quarter that ended in Dec. 2023 was -29.12%.

Charlottes Web Holdings ROCE % Historical Data

The historical data trend for Charlottes Web Holdings's ROCE % 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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Charlottes Web Holdings ROCE % Chart

Charlottes Web Holdings Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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-13.01

-21.35

-22.64

-32.80

-26.96

Charlottes Web Holdings Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															-87.84	-19.09	-27.47	-32.96	-29.12

Charlottes Web Holdings ROCE % Calculation

Charlottes Web Holdings's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	-53.75	/	( ( (254.912 - 29.109)	+	(204.658 - 31.723) )	/ 2 )
	=	-53.75	/	( (225.803	+	172.935)	/ 2 )
	=	-53.75	/	199.369
	=	-26.96 %

Charlottes Web Holdings's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	-52.584	/	( ( (221.728 - 33.531)	+	(204.658 - 31.723) )	/ 2 )
	=	-52.584	/	( ( 188.197	+	172.935 )	/ 2 )
	=	-52.584	/	180.566
	=	-29.12 %

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

Charlottes Web Holdings (TSX:CWEB) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Charlottes Web Holdings ROCE % Related Terms

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Charlottes Web Holdings (TSX:CWEB) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Charlottes Web Holdings Inc (TSX:CWEB) » Definitions » ROCE %

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Traded in Other Exchanges

CWBHF:USA 6CW:Germany

Address

700 Tech Court, Louisville, CO, USA, 80027

Website

https://www.charlottesweb.com

Charlottes Web Holdings Inc is engaged in the production and distribution of hemp-based cannabidiol (CBD) wellness products. Its product categories include ingestible products (tinctures, capsules, and gummies), topicals, and pet products. The company distributes its products through an e-commerce website, third-party e-commerce websites, select distributors, health practitioners, and a variety of brick-and-mortar specialty retailers.

Charlottes Web Holdings (TSX:CWEB) Headlines

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