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ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Jewett-Cameron Trading Co's annualized return on invested capital (ROIC %) for the quarter that ended in Feb. 2024 was -9.64%.
As of today (2024-04-25), Jewett-Cameron Trading Co's WACC % is 5.00%. Jewett-Cameron Trading Co's ROIC % is 0.36% (calculated using TTM income statement data). Jewett-Cameron Trading Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.
The historical data trend for Jewett-Cameron Trading Co'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.
Jewett-Cameron Trading Co Annual Data | |||||||||||||||||||||
Trend | Aug14 | Aug15 | Aug16 | Aug17 | Aug18 | Aug19 | Aug20 | Aug21 | Aug22 | Aug23 | |||||||||||
ROIC % | Get a 7-Day Free Trial | 15.20 | 20.33 | 14.20 | 5.23 | -0.77 |
Jewett-Cameron Trading Co Quarterly Data | ||||||||||||||||||||
May19 | Aug19 | Nov19 | Feb20 | May20 | Aug20 | Nov20 | Feb21 | May21 | Aug21 | Nov21 | Feb22 | May22 | Aug22 | Nov22 | Feb23 | May23 | Aug23 | Nov23 | Feb24 | |
ROIC % | Get a 7-Day Free Trial | -11.60 | 11.09 | 4.68 | -9.93 | -9.64 |
For the Lumber & Wood Production subindustry, Jewett-Cameron Trading Co'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.
For the Forest Products industry and Basic Materials sector, Jewett-Cameron Trading Co's ROIC % distribution charts can be found below:
* The bar in red indicates where Jewett-Cameron Trading Co's ROIC % falls into.
Jewett-Cameron Trading Co's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Aug. 2023 is calculated as:
ROIC % (A: Aug. 2023 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (A: Aug. 2022 ) | + | Invested Capital (A: Aug. 2023 )) | / count ) |
= | 0.431 * ( 1 - 150% ) | / | ( (30.611 | + | 25.273) | / 2 ) |
= | -0.2155 | / | 27.942 | |||
= | -0.77 % |
where
Invested Capital | (A: Aug. 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 | )) |
= | 34.517 | - | 3.422 | - | ( 0.484 | - | max(0, 10.422 | - | 29.63 | + | 0.484 | )) |
= | 30.611 |
Invested Capital | (A: Aug. 2023 ) | |||||||||||
= | 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 | )) |
= | 29.799 | - | 4.442 | - | ( 0.084 | - | max(0, 5.701 | - | 24.688 | + | 0.084 | )) |
= | 25.273 |
Jewett-Cameron Trading Co's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Feb. 2024 is calculated as:
ROIC % (Q: Feb. 2024 ) | ||||||
= | NOPAT | / | Average Invested Capital | |||
= | Operating Income * ( 1 - Tax Rate % ) | / | ( (Invested Capital (Q: Nov. 2023 ) | + | Invested Capital (Q: Feb. 2024 )) | / count ) |
= | -2.908 * ( 1 - 24.47% ) | / | ( (21.831 | + | 23.737) | / 2 ) |
= | -2.1964124 | / | 22.784 | |||
= | -9.64 % |
where
Invested Capital | (Q: Nov. 2023 ) | |||||||||||
= | 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 | )) |
= | 29.938 | - | 4.549 | - | ( 3.558 | - | max(0, 4.549 | - | 25.05 | + | 3.558 | )) |
= | 21.831 |
Invested Capital | (Q: Feb. 2024 ) | |||||||||||
= | 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 | )) |
= | 28.988 | - | 4.102 | - | ( 1.149 | - | max(0, 4.102 | - | 24.199 | + | 1.149 | )) |
= | 23.737 |
Note: The Operating Income data used here is four times the quarterly (Feb. 2024) 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.
Jewett-Cameron Trading Co (NAS:JCTCF) 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, Jewett-Cameron Trading Co's WACC % is 5.00%. Jewett-Cameron Trading Co's ROIC % is 0.36% (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.
Thank you for viewing the detailed overview of Jewett-Cameron Trading Co's ROIC % provided by GuruFocus.com. Please click on the following links to see related term pages.
Chad Michael Summers | director, officer: Chief Executive Officer | 2615 COEUR D'ALENE DR, WEST LINN OR 97065 |
Van Domelen Mitchell David | officer: CFO and Corporate Secretary | 17492 NW COUNTRY DRIVE, PORTLAND OR 97223 |
Michael Charles Nasser | 10 percent owner, officer: Corporate Secretary | 3150 S.W. 72ND, PORTLAND OR 97225 |
Oregon Community Foundation | 10 percent owner | 1221 SW YAMHILL #100, PORTLAND OR 97205 |
Donald Boone Irrev Trust | 10 percent owner | C/O RIVERVIEW TRUST COMPANY, 900 WASHINGTON ST, SUITE 900, VANCOUVER WA 98660 |
Donald M Boone | director, 10 percent owner, officer: President/CEO/Treasurer | PO BOX 1010, N PLAINS OR 97133 |
Chris Joseph Karlin | director | 1822 PROSPECT AVE, HOOD RIVER OR 97031 |
Sarah Kathleen Johnson | director | 810 NE 22ND AVE, PORTLAND OR 97232 |
Geoffrey Gaddy Guilfoy | director | 1260 NW NAITO PARKWAY #704, PORTLAND OR 97209 |
Charles E. Hopewell | director, officer: President and CEO | P.O. BOX 1010, NORTH PLAINS OR 97133 |
Frank Gerald Magdlen | director | 13620 SE MAPLE LANE, MILWAUKIE OR 97222 |
Ted A Sharp | director | 428 CRYSTAL SPRINGS LN, KEIZER OR 97303 |
Ralph Elton Lodewick | director | 5945 NW SEWELL RD, HILLSBORO OR 97124 |
Murray George Smith | officer: Chief Financial Officer | 11920 SOUTHERN HIGHLANDS PARKWAY,, SUITE 200, LAS VEGAS NV 89141 |
Thomas Robert Rice | officer: Chief Financial Officer | P.O. BOX 1010, NORTH PLAINS OR 97133 |
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