BRBMF (Big Rock Brewery) ROC % : -5.71% (As of Jun. 2024)

View and export this data going back to 1994. Start your Free Trial

What is Big Rock Brewery 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 %. Big Rock Brewery's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was -5.71%.

As of today (2024-12-14), Big Rock Brewery's WACC % is 8.83%. Big Rock Brewery's ROC % is -9.68% (calculated using TTM income statement data). Big Rock Brewery earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Big Rock Brewery ROC % Historical Data

The historical data trend for Big Rock Brewery'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.

Big Rock Brewery ROC % Chart

Big Rock Brewery Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

Get a 7-Day Free Trial

-6.57

3.13

-3.31

-10.72

-3.05

Big Rock Brewery Quarterly Data
	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24
ROC %	Get a 7-Day Free Trial															0.30	0.48	-13.57	-20.48	-5.71

Big Rock Brewery ROC % Calculation

Big Rock Brewery'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 )
=	-1.158 * ( 1 - 9.63% )	/	( (35.852	+	32.751)	/ 2 )
=	-1.0464846	/	34.3015
=	-3.05 %

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	))
=	38.002	-	5.962	-	( 0.45	-	max(0, 11.117	-	7.305	+	0.45	))
=	35.852

	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	))
=	39.349	-	7.757	-	( 0.774	-	max(0, 12.059	-	10.9	+	0.774	))
=	32.751

Big Rock Brewery's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	-1.948 * ( 1 - 0% )	/	( (33.59	+	34.611)	/ 2 )
=	-1.948	/	34.1005
=	-5.71 %

where

	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	))
=	38.168	-	7.5	-	( 0.4	-	max(0, 13.893	-	10.971	+	0.4	))
=	33.59

	Invested Capital		(Q: Jun. 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	))
=	38.683	-	8.277	-	( 0.649	-	max(0, 15.955	-	11.75	+	0.649	))
=	34.611

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

Big Rock Brewery (OTCPK:BRBMF) 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, Big Rock Brewery's WACC % is 8.83%. Big Rock Brewery's ROC % is -9.68% (calculated using TTM income statement data). Big Rock Brewery 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.

Big Rock Brewery ROC % Related Terms

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

Big Rock Brewery Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Big Rock Brewery Inc (OTCPK:BRBMF) » Definitions » ROC %

Traded in Other Exchanges

BR:Canada

Address

5555 - 76th Avenue SE, Calgary, AB, CAN, T2C 4L8

Website

https://www.bigrockbeer.com

Big Rock Brewery Inc is a producer of premium, all-natural craft beers, cider, and other alcoholic and non-alcoholic beverages.. It operates in two segments: the wholesale segment which manufactures and distributes beer and cider to and through, provincial liquor boards which are subsequently sold to end consumers; and the retail segment, which sells beverages, food, and merchandise to end consumers on premises owned and/or operated by the company. Its brands include Big Rock, Tree Brewing, Pacer, Rock Creek Cider, Dukes Cider, AGD, Shaftebury, Bow Valley, White Peaks, and Cottage Springs. It also produces an ongoing selection of seasonal beers and ciders as well as beer and RTD products under co-packaging and "white label" contract arrangements.

Big Rock Brewery Headlines

From GuruFocus

Big Rock Brewery Inc. Announces Results of Annual General Meeting of Shareholders

By GlobeNewswire GlobeNewswire • 05-13-2021

Big Rock Brewery Inc. Announces Results of Annual and Special Meeting of Shareholders

By GlobeNewswire GlobeNewswire • 05-10-2019