CBGL (Cannabis Global) ROC %: -7.25% (As of May. 2022)


What is Cannabis Global ROC %?

Cannabis Global CBGL ROC % is -7.25% as of May. 2022.

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Cannabis Global's annualized return on capital (ROC %) for the quarter that ended in May. 2022 was -7.25%.

As of today (2026-06-26), Cannabis Global's WACC % is 0.00%. Cannabis Global's ROC % is 0.00% (calculated using TTM income statement data). Cannabis Global earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cannabis Global  (OTCPK:CBGL) 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, Cannabis Global's WACC % is 0.00%. Cannabis Global's ROC % is 0.00% (calculated using TTM income statement data). Cannabis Global 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.

Cannabis Global ROC % Related Terms

Cannabis Global ROC % Historical Data

* Premium members only.

The historical data trend for Cannabis Global'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.

Cannabis Global ROC % Chart

Cannabis Global Annual Data
Trend Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21
ROC %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.43 -62.58 -547.26 -123.96 -16.00

Cannabis Global Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
ROC % Get a 7-Day Free Trial 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 -11.23 -13.04 -5.13 -24.89 -7.25

Cannabis Global ROC % Calculation

Cannabis Global's annualized Return on Capital (ROC %) for the fiscal year that ended in Aug. 2021 is calculated as:

ROC % (A: Aug. 2021 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (A: Aug. 2020 ) + Invested Capital (A: Aug. 2021 ))/ count )
=-1.944 * ( 1 - 0% )/( (5.739 + 18.563)/ 2 )
=-1.944/12.151
=-16.00 %

where

Invested Capital(A: Aug. 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))
=2.325 - 0.268 - ( 0.002 - max(0, 3.76 - 0.078+0.002))
=5.739

Invested Capital(A: Aug. 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))
=11.339 - 1.081 - ( 0.031 - max(0, 8.747 - 0.442+0.031))
=18.563

Cannabis Global's annualized Return on Capital (ROC %) for the quarter that ended in May. 2022 is calculated as:

ROC % (Q: May. 2022 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Feb. 2022 ) + Invested Capital (Q: May. 2022 ))/ count )
=-1.372 * ( 1 - 0% )/( (18.933 + 18.894)/ 2 )
=-1.372/18.9135
=-7.25 %

where

Invested Capital(Q: Feb. 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))
=15.148 - 0.894 - ( 0.604 - max(0, 5.962 - 1.283+0.604))
=18.933

Invested Capital(Q: May. 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))
=14.909 - 0.832 - ( 0.253 - max(0, 6.114 - 1.297+0.253))
=18.894

Note: The Operating Income data used here is four times the quarterly (May. 2022) data. The tax rate is limited to between 0% and 100%.

* 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.

Frequently Asked Questions Learn more about ROC % →
What does a ROC % of -7.25% mean?
Cannabis Global (CBGL) has a ROC % of -7.25% as of May. 2022. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Cannabis Global and its competitors.
Is Cannabis Global's ROC % too high?
Cannabis Global's current ROC % is -7.25%.
How does Cannabis Global's ROC % compare to MILC and BBBT?
Cannabis Global's ROC % of -7.25% can be compared against companies in the Drug Manufacturers industry. The industry median ROC % is 4.44. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a Drug Manufacturers company?
The median ROC % among Drug Manufacturers companies is 4.44, based on 985 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Cannabis Global and its competitors. For the Drug Manufacturers industry, the median ROC % is 4.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cannabis Global's current ROC % is -7.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cannabis Global stock overvalued right now?
Cannabis Global (CBGL) has a current ROC % of -7.25%. The current ROC % is -7.25%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Cannabis Global (CBGL), the current ROC % is -7.25% as of May. 2022. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Cannabis Global Business Description

Address 520 S Grand Avenue, Suite 320, Los Angeles, CA, USA, 90071
Cannabis Global Inc manufactures and distributes various cannabis products via its majority ownership of Natural Plant Extract, Inc is developing the Ethos Comply Bag, and generally conducts research and development in the areas of hemp, cannabis and consumer food goods. The company also have an active research and development program focused on creating and commercializing engineered technologies that deliver hemp extracts and cannabinoids to the human body. Its product includes cannabis flower packaged in various weights, cannabis Pre-rolls, cannabis edible products.