Clever Leaves Holdings (Clever Leaves Holdings) ROC % : -87.54% (As of Dec. 2023)

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What is Clever Leaves 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 %. Clever Leaves Holdings's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -87.54%.

As of today (2024-05-27), Clever Leaves Holdings's WACC % is 14.54%. Clever Leaves Holdings's ROC % is -53.88% (calculated using TTM income statement data). Clever Leaves Holdings earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Clever Leaves Holdings ROC % Historical Data

The historical data trend for Clever Leaves 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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Clever Leaves Holdings ROC % Chart

Clever Leaves Holdings Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

-47.10

-31.87

-47.33

-33.64

-59.48

Clever Leaves Holdings Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROC %	Get a 7-Day Free Trial												-43.50	-49.03	-38.13	-46.31	-87.54

Clever Leaves Holdings ROC % Calculation

Clever Leaves Holdings'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 )
=	-15.594 * ( 1 - -0.34% )	/	( (33.112	+	19.505)	/ 2 )
=	-15.6470196	/	26.3085
=	-59.48 %

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	))
=	52.098	-	6.537	-	( 12.449	-	max(0, 9.426	-	26.247	+	12.449	))
=	33.112

	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	))
=	31.243	-	4.907	-	( 6.831	-	max(0, 5.811	-	13.94	+	6.831	))
=	19.505

Clever Leaves Holdings's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-19.648 * ( 1 - -1.35% )	/	( (25.992	+	19.505)	/ 2 )
=	-19.913248	/	22.7485
=	-87.54 %

where

	Invested Capital		(Q: Sep. 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	))
=	37.777	-	5.313	-	( 6.472	-	max(0, 6.847	-	17.934	+	6.472	))
=	25.992

	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	))
=	31.243	-	4.907	-	( 6.831	-	max(0, 5.811	-	13.94	+	6.831	))
=	19.505

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

Clever Leaves Holdings (OTCPK:CLVRW) 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, Clever Leaves Holdings's WACC % is 14.54%. Clever Leaves Holdings's ROC % is -53.88% (calculated using TTM income statement data). Clever Leaves 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.

Clever Leaves Holdings ROC % Related Terms

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Clever Leaves Holdings (Clever Leaves Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Clever Leaves Holdings Inc (OTCPK:CLVRW) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

CLVR:USA

Address

19-B Parque Industrial Tibitoc, Tocancipá, Cundinamarca, Bodega, Colombia, BC, CAN

Website

https://www.cleverleaves.com

Clever Leaves Holdings Inc is a producer of pharmaceutical and consumer cannabis brands. The company operates and has investments in Canada, Colombia, Germany, Portugal, and the United States. The company operates in two reportable segments, 1. The Cannabinoid operating segment: is comprised of the Company's cultivation, extraction, and commercialization of cannabinoid products. 2. Non-Cannabinoid operating segment is engaged in the business of formulating, manufacturing, marketing, selling, distributing, and otherwise commercializing nutraceutical and other natural remedies, wellness products, detoxification products, and nutritional and dietary supplements.