Brewbilt Brewing Co (Brewbilt Brewing Co) ROC % : -8.36% (As of Mar. 2024)

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What is Brewbilt Brewing Co 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 %. Brewbilt Brewing Co's annualized return on capital (ROC %) for the quarter that ended in Mar. 2024 was -8.36%.

As of today (2024-06-04), Brewbilt Brewing Co's WACC % is 86.97%. Brewbilt Brewing Co's ROC % is -20.21% (calculated using TTM income statement data). Brewbilt Brewing Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Brewbilt Brewing Co ROC % Historical Data

The historical data trend for Brewbilt Brewing Co'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.

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Brewbilt Brewing Co ROC % Chart

Brewbilt Brewing Co Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-54.17

-12.39

-118.16

-69.54

-26.49

Brewbilt Brewing Co Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROC %	Get a 7-Day Free Trial															-95.12	-28.98	-49.00	-15.66	-8.36

Brewbilt Brewing Co ROC % Calculation

Brewbilt Brewing Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-2.968 * ( 1 - 0% )	/	( (5.512	+	16.896)	/ 2 )
=	-2.968	/	11.204
=	-26.49 %

where

	Invested Capital		(A: Dec. 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	))
=	1.976	-	2.239	-	( 0.033	-	max(0, 5.868	-	0.093	+	0.033	))
=	5.512

	Invested Capital		(A: Dec. 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	))
=	2.413	-	2.729	-	( 0.115	-	max(0, 17.42	-	0.208	+	0.115	))
=	16.896

Brewbilt Brewing Co's annualized Return on Capital (ROC %) for the quarter that ended in Mar. 2024 is calculated as:

	ROC % (Q: Mar. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Dec. 2023 )	+	Invested Capital (Q: Mar. 2024 ))	/ count )
=	-1.384 * ( 1 - 0% )	/	( (16.896	+	16.23)	/ 2 )
=	-1.384	/	16.563
=	-8.36 %

where

	Invested Capital		(Q: Dec. 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	))
=	2.413	-	2.729	-	( 0.115	-	max(0, 17.42	-	0.208	+	0.115	))
=	16.896

	Invested Capital		(Q: Mar. 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	))
=	2.277	-	2.897	-	( 0.022	-	max(0, 16.991	-	0.141	+	0.022	))
=	16.23

Note: The Operating Income data used here is four times the quarterly (Mar. 2024) data.

Brewbilt Brewing Co (OTCPK:BRBL) 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, Brewbilt Brewing Co's WACC % is 86.97%. Brewbilt Brewing Co's ROC % is -20.21% (calculated using TTM income statement data). Brewbilt Brewing Co 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.

Brewbilt Brewing Co ROC % Related Terms

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Brewbilt Brewing Co (Brewbilt Brewing Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Brewbilt Brewing Co (OTCPK:BRBL) » Definitions » ROC %

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Address

110 Spring Hill Drive, Suite 17, Grass Valley, CA, USA, 95945

Website

https://www.brewbilt.com

Brewbilt Brewing Co is engaged in the manufacturing of custom designs and handcrafts brewing and fermentation equipment and supplies necessary equipment for craft beer production. BrewBilt Brewing produces satisfying beers using small-batch California malt for a good-quality beer. The facility and experienced staff ferment the lagers in stacked horizontal lagering tanks and give them plenty of cold aging time to achieve optimal taste and clarity. The packaging process utilizes a counter-pressure Codi line to ensure the lowest possible level of packaged oxygen, maximizing product stability and continuity over its shelf life.

Executives

Jef Howard Lewis	director	318 CLAY STREET, NEVADA CITY CA 95959
Bennett Buchanan	director	13848 LAVA DOME WAY, NEVADA CITY CA 95959
James Powell	director, officer: President	999 18TH STREET, SUITE 3000, DENVER CO 80202
Tim C Deherrera	director	1400 16TH STREET, SUITE 400, DENVER CO 80202
Paul Watts	director, officer: President	33 CAVENDISH SQUARE, LONDON X0 W140RA
Kelly Sundberg	director, 10 percent owner, officer: President	45 COVE PARK ROAD NE, CALGARY A0 T3K 5XB