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THC Therapeutics (OTCPK:THCT) ROIC %

: -21.85% (As of Apr. 2022)
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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 %. THC Therapeutics's annualized return on invested capital (ROIC %) for the quarter that ended in Apr. 2022 was -21.85%.

As of today (2022-11-28), THC Therapeutics's WACC % is 34.39%. THC Therapeutics's ROIC % is -73.95% (calculated using TTM income statement data). THC Therapeutics earns returns that do not match up to its cost of capital. It will destroy value as it grows.


THC Therapeutics (OTCPK:THCT) ROIC % Historical Data

The historical data trend for THC Therapeutics'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.

* Premium members only.

THC Therapeutics Annual Data
Trend Jul12 Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21
ROIC % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -60.87 -49.73 -1,346.66 -135.08 -59.72

THC Therapeutics Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
ROIC % 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 Premium Member Only Premium Member Only Premium Member Only -52.11 -77.43 -43.16 -156.34 -21.85

THC Therapeutics (OTCPK:THCT) ROIC % Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, THC Therapeutics'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.

   

THC Therapeutics (OTCPK:THCT) ROIC % Distribution

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

* The bar in red indicates where THC Therapeutics's ROIC % falls into.



THC Therapeutics ROIC % Calculation

THC Therapeutics's annualized Return on Invested Capital (ROIC %) for the fiscal year that ended in Jul. 2021 is calculated as:

ROIC % (A: Jul. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Jul. 2020 ) + Invested Capital (A: Jul. 2021 ))/ count )
=-0.94 * ( 1 - 0% )/( (1.208 + 1.94)/ 2 )
=-0.94/1.574
=-59.72 %

where

THC Therapeutics's annualized Return on Invested Capital (ROIC %) for the quarter that ended in Apr. 2022 is calculated as:

ROIC % (Q: Apr. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jan. 2022 ) + Invested Capital (Q: Apr. 2022 ))/ count )
=-0.496 * ( 1 - 0% )/( (2.026 + 2.515)/ 2 )
=-0.496/2.2705
=-21.85 %

where

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


THC Therapeutics  (OTCPK:THCT) 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, THC Therapeutics's WACC % is 34.39%. THC Therapeutics's ROIC % is -73.95% (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.


THC Therapeutics ROIC % Related Terms

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THC Therapeutics (OTCPK:THCT) Business Description

THC Therapeutics logo
Traded in Other Exchanges
N/A
Address
11700 W Charleston Bpulevard, Suite 73, Las Vegas, NV, USA, 89135
THC Therapeutics Inc is a United States-based company. It is focused on developing dHydronator, a sanitizing herb dryer. The main function of the dHydronator is to accelerate the drying time of an herb while sanitizing it. The dHydronator can be used to dry a variety of herbs, and it has been specifically tested for use with cannabis. It will reduce the drying time for cannabis from 10-14 days down to less than 14 hours while reducing the viability of microbial contaminants.
Executives
Tanaka Hiro director, officer: Vice President 3RD FLOOR, 207 REGENT STREET LONDON X0 W1B 3HH
Smith Adrian J R director, officer: Chair of the Board 119 SPRINGLINE DRIVE VERO BEACH FL 32963
Mann Jamie director, 10 percent owner, officer: CEO, CFO 3RD FLOOR, 207 REGENT STREET LONDON X0 W1B 3HH
Ho Eden director, officer: CEO 701 XUANG MI HU ROAD, XI YUAN, FUTIAN SHENZHEN F4 XXXXXX
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