Branded Legacy (Branded Legacy) ROC % : 673.68% (As of Dec. 2021)

View and export this data going back to . Start your Free Trial

What is Branded Legacy ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Branded Legacy's annualized return on capital (ROC %) for the quarter that ended in Dec. 2021 was 673.68%.

As of today (2024-06-09), Branded Legacy's WACC % is 0.00%. Branded Legacy's ROC % is 0.00% (calculated using TTM income statement data). Branded Legacy earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Branded Legacy ROC % Historical Data

The historical data trend for Branded Legacy's ROC % 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.

Branded Legacy ROC % Chart

Branded Legacy Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

ROC %

Get a 7-Day Free Trial

-109.65

-415.82

-1,722.69

-208.39

-387.65

Branded Legacy Quarterly Data
	Dec15	Dec16	Dec17	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21
ROC %	Get a 7-Day Free Trial												6,245.27	-186.55	-367.38	-1,088.58	673.68

Branded Legacy ROC % Calculation

Branded Legacy's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2021 is calculated as:

	ROC % (A: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2020 )	+	Invested Capital (A: Dec. 2021 ))	/ count )
=	-0.314 * ( 1 - 0% )	/	( (0.1	+	0.062)	/ 2 )
=	-0.314	/	0.081
=	-387.65 %

where

	Invested Capital		(A: Dec. 2020 )
=	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	))
=	0.15	-	0.044	-	( 0.006	-	max(0, 0.048	-	0.139	+	0.006	))
=	0.1

	Invested Capital		(A: Dec. 2021 )
=	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	))
=	0.12	-	0.057	-	( 0.001	-	max(0, 0.071	-	0.106	+	0.001	))
=	0.062

Branded Legacy's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2021 is calculated as:

	ROC % (Q: Dec. 2021 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2021 )	+	Invested Capital (Q: Dec. 2021 ))	/ count )
=	0.576 * ( 1 - 0% )	/	( (0.109	+	0.062)	/ 2 )
=	0.576	/	0.0855
=	673.68 %

where

	Invested Capital		(Q: Sep. 2021 )
=	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	))
=	0.156	-	0.051	-	( -0.004	-	max(0, 0.051	-	0.152	+	-0.004	))
=	0.109

	Invested Capital		(Q: Dec. 2021 )
=	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	))
=	0.12	-	0.057	-	( 0.001	-	max(0, 0.071	-	0.106	+	0.001	))
=	0.062

Note: The Operating Income data used here is four times the quarterly (Dec. 2021) data.

Branded Legacy (OTCPK:BLEG) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. 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 ROC % 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, Branded Legacy's WACC % is 0.00%. Branded Legacy's ROC % is 0.00% (calculated using TTM income statement data). Branded Legacy earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % 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.

Branded Legacy ROC % Related Terms

Thank you for viewing the detailed overview of Branded Legacy's ROC % provided by GuruFocus.com. Please click on the following links to see related term pages.

Branded Legacy (Branded Legacy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Branded Legacy Inc (OTCPK:BLEG) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

227 West 4th Street, Unit 108, Charlotte, NC, USA, 28202

Website

https://www.brandedlegacy.com

Branded Legacy Inc is a company engaged in the development and marketing of products for the fitness and wellness markets. The company is focused on creating products for health-conscious consumers. Through its subsidiary, the company focuses on the development and marketing of hemp-based food, beverage, and healthcare products including hemp coffee, hemp water, and hemp-based skincare products. It sells product to consumers, wholesalers as well as distributors.