CBIH (Cannabis Bioscience International Holdings) ROC % : -201.54% (As of Aug. 2024)

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What is Cannabis Bioscience International Holdings 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 %. Cannabis Bioscience International Holdings's annualized return on capital (ROC %) for the quarter that ended in Aug. 2024 was -201.54%.

As of today (2024-12-13), Cannabis Bioscience International Holdings's WACC % is 18.20%. Cannabis Bioscience International Holdings's ROC % is -154.90% (calculated using TTM income statement data). Cannabis Bioscience International Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Cannabis Bioscience International Holdings ROC % Historical Data

The historical data trend for Cannabis Bioscience International Holdings'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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Cannabis Bioscience International Holdings ROC % Chart

Cannabis Bioscience International Holdings Annual Data

Trend

Dec06

Dec07

May09

May10

May11

May23

May24

ROC %

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52.28

-35.12

18.27

-2.86

-235.35

Cannabis Bioscience International Holdings Quarterly Data
	May09	Aug09	Nov09	Feb10	May10	Aug10	Nov10	Feb11	May11	Aug11	Nov11	Feb12	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
ROC %	Get a 7-Day Free Trial															-364.95	-125.00	-213.33	-46.60	-201.54

Cannabis Bioscience International Holdings ROC % Calculation

Cannabis Bioscience International Holdings's annualized Return on Capital (ROC %) for the fiscal year that ended in May. 2024 is calculated as:

	ROC % (A: May. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: May. 2023 )	+	Invested Capital (A: May. 2024 ))	/ count )
=	-0.486 * ( 1 - 0% )	/	( (0.194	+	0.219)	/ 2 )
=	-0.486	/	0.2065
=	-235.35 %

where

	Invested Capital		(A: May. 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	))
=	0.043	-	0.216	-	( 0.009	-	max(0, 0.386	-	0.019	+	0.009	))
=	0.194

	Invested Capital		(A: May. 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	))
=	0.057	-	0.699	-	( 0.001	-	max(0, 0.882	-	0.021	+	0.001	))
=	0.219

Cannabis Bioscience International Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Aug. 2024 is calculated as:

	ROC % (Q: Aug. 2024 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: May. 2024 )	+	Invested Capital (Q: Aug. 2024 ))	/ count )
=	-0.392 * ( 1 - 0% )	/	( (0.219	+	0.17)	/ 2 )
=	-0.392	/	0.1945
=	-201.54 %

where

	Invested Capital		(Q: May. 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	))
=	0.057	-	0.699	-	( 0.001	-	max(0, 0.882	-	0.021	+	0.001	))
=	0.219

	Invested Capital		(Q: Aug. 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	))
=	0.046	-	0.709	-	( 0.001	-	max(0, 0.852	-	0.019	+	0.001	))
=	0.17

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

Cannabis Bioscience International Holdings (OTCPK:CBIH) 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 Bioscience International Holdings's WACC % is 18.20%. Cannabis Bioscience International Holdings's ROC % is -154.90% (calculated using TTM income statement data). Cannabis Bioscience International Holdings 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 Bioscience International Holdings ROC % Related Terms

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Cannabis Bioscience International Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Cannabis Bioscience International Holdings Inc (OTCPK:CBIH) » Definitions » ROC %

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Address

6201 Bonhomme Road, Suite 435N, Houston, TX, USA, 77036

Website

https://www.cbih.net

Cannabis Bioscience International Holdings Inc provides educational systems focused on medical cannabis in cities throughout the United States and six countries in Latin America. The company provides services in therapeutic areas of clinical trials and services relating to sleep disorders through its sleep center in Houston, Texas. It offered concierge medicine at an affordable price through a membership-based model through its wholly-owned subsidiary.