Canopy Growth (TSX:WEED) ROCE %

: -63.36% (As of Dec. 2023)

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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. Canopy Growth's annualized ROCE % for the quarter that ended in Dec. 2023 was -63.36%.

Canopy Growth ROCE % Historical Data

The historical data trend for Canopy Growth'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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Canopy Growth Annual Data

Trend

Jul13

Dec14

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

ROCE %

-14.52

-20.59

-25.82

-3.95

-90.74

Canopy Growth Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %																-29.98	-160.34	-1.82	-26.89	-63.36

Canopy Growth ROCE % Calculation

Canopy Growth's annualized ROCE % for the fiscal year that ended in Mar. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Mar. 2023 )		(A: Mar. 2022 )		(A: Mar. 2023 )
	=	-3188.16	/	( ( (5605.26 - 213.19)	+	(2439.098 - 803.842) )	/ 2 )
	=	-3188.16	/	( (5392.07	+	1635.256)	/ 2 )
	=	-3188.16	/	3513.663
	=	-90.74 %

Canopy Growth'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 )
	=	-826.92	/	( ( (1668.224 - 196.252)	+	(1359.751 - 221.345) )	/ 2 )
	=	-826.92	/	( ( 1471.972	+	1138.406 )	/ 2 )
	=	-826.92	/	1305.189
	=	-63.36 %

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

Canopy Growth (TSX:WEED) 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.

Canopy Growth ROCE % Related Terms

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Canopy Growth (TSX:WEED) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Canopy Growth Corp (TSX:WEED) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

CGC:USA 11L:Germany

Address

1 Hershey Drive, Smiths Falls, ON, CAN, K7A 0A8

Website

https://www.canopygrowth.com

Canopy Growth, headquartered in Smiths Falls, Canada, cultivates and sells medicinal and recreational cannabis, and hemp, through a portfolio of brands that include Doja, 7ACRES, Tweed, and Deep Space. Its non-THC products include sports drink BioSteel, skincare products under This Works, Martha Stewart CBD, and Storz & Bickel vaporizers. Canopy growth is attempting to merge its U.S. assets into a separately operated holding company, Canopy USA, which will not be consolidated into the Canadian company's financials.

Canopy Growth (TSX:WEED) ROCE %

Canopy Growth ROCE % Historical Data

Canopy Growth ROCE % Calculation

Canopy Growth ROCE % Related Terms

Canopy Growth (TSX:WEED) Business Description

Canopy Growth (TSX:WEED) Headlines