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Fire & Flower Holdings (TSX:FAF) ROC (Joel Greenblatt) % : -51.11% (As of Mar. 2023)


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What is Fire & Flower Holdings ROC (Joel Greenblatt) %?

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Fire & Flower Holdings's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2023 was -51.11%.

The historical rank and industry rank for Fire & Flower Holdings's ROC (Joel Greenblatt) % or its related term are showing as below:

TSX:FAF's ROC (Joel Greenblatt) % is not ranked *
in the Healthcare Providers & Services industry.
Industry Median: 9.26
* Ranked among companies with meaningful ROC (Joel Greenblatt) % only.

Fire & Flower Holdings's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


Fire & Flower Holdings ROC (Joel Greenblatt) % Historical Data

The historical data trend for Fire & Flower Holdings's ROC (Joel Greenblatt) % 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.

Fire & Flower Holdings ROC (Joel Greenblatt) % Chart

Fire & Flower Holdings Annual Data
Trend Jan20 Jan21 Jan22
ROC (Joel Greenblatt) %
-23.79 -70.86 -61.29

Fire & Flower Holdings Quarterly Data
Feb18 May18 Aug18 Nov18 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Mar23
ROC (Joel Greenblatt) % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -71.69 -32.01 -85.18 -128.29 -51.11

Competitive Comparison of Fire & Flower Holdings's ROC (Joel Greenblatt) %

For the Pharmaceutical Retailers subindustry, Fire & Flower Holdings's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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.


Fire & Flower Holdings's ROC (Joel Greenblatt) % Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Fire & Flower Holdings's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Fire & Flower Holdings's ROC (Joel Greenblatt) % falls into.



Fire & Flower Holdings ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Oct. 2022 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(16.076 + 12.195 + 3.628) - (25.456 + 0.527 + 3.167)
=2.749

Working Capital(Q: Mar. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(10.607 + 13.139 + 5.709) - (24.756 + 0.25 + 6.302)
=-1.853

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Fire & Flower Holdings for the quarter that ended in Mar. 2023 can be restated as:

ROC (Joel Greenblatt) %(Q: Mar. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Oct. 2022  Q: Mar. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-31.536/( ( (72.437 + max(2.749, 0)) + (61.697 + max(-1.853, 0)) )/ 2 )
=-31.536/( ( 75.186 + 61.697 )/ 2 )
=-31.536/68.4415
=-46.08 %

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

* 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.


Fire & Flower Holdings  (TSX:FAF) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Fire & Flower Holdings ROC (Joel Greenblatt) % Related Terms

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Fire & Flower Holdings (TSX:FAF) Business Description

Traded in Other Exchanges
N/A
Address
130 King Street West, Suite 2500, Toronto, ON, CAN, M5X 1C8
Fire & Flower Holdings Corp is an independent adult-use cannabis retailer focused on the Canadian market and international expansion opportunities. The company guides consumers through the complex world of cannabis through education-focused, retailing while the Hifyrea digital platform connects consumers with cannabis products. The company has three reportable segments namely, Retail segment, Wholesale and Logistics segment, and Digital Platform. Majority of the revenue is earned from Retail segment.

Fire & Flower Holdings (TSX:FAF) Headlines

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