For The Earth (For The Earth) ROC % : -136.59% (As of Sep. 2004)

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What is For The Earth 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 %. For The Earth's annualized return on capital (ROC %) for the quarter that ended in Sep. 2004 was -136.59%.

As of today (2024-06-24), For The Earth's WACC % is 0.00%. For The Earth's ROC % is 0.00% (calculated using TTM income statement data). For The Earth earns returns that do not match up to its cost of capital. It will destroy value as it grows.

For The Earth ROC % Historical Data

The historical data trend for For The Earth'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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For The Earth ROC % Chart

For The Earth Annual Data

Trend

Dec99

Dec00

Dec01

Dec02

Dec03

ROC %

-85.42

-90.40

-144.57

-120.43

-137.01

For The Earth Quarterly Data
	Mar00	Jun00	Sep00	Dec00	Mar01	Jun01	Sep01	Dec01	Mar02	Jun02	Sep02	Dec02	Mar03	Jun03	Sep03	Dec03	Mar04	Jun04	Sep04
ROC %	Get a 7-Day Free Trial														-150.31	-117.53	-153.59	-50.81	-136.59

For The Earth ROC % Calculation

For The Earth's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2003 is calculated as:

	ROC % (A: Dec. 2003 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2002 )	+	Invested Capital (A: Dec. 2003 ))	/ count )
=	-0.721 * ( 1 - 0.14% )	/	( (0.53	+	0.521)	/ 2 )
=	-0.7199906	/	0.5255
=	-137.01 %

where

	Invested Capital		(A: Dec. 2002 )
=	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	))
=	0.831	-	0.062	-	( 0.41	-	max(0, 0.244	-	0.483	+	0.41	))
=	0.53

	Invested Capital		(A: Dec. 2003 )
=	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	))
=	0.353	-	0.301	-	( 0.001	-	max(0, 0.499	-	0.03	+	0.001	))
=	0.521

For The Earth's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2004 is calculated as:

	ROC % (Q: Sep. 2004 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2004 )	+	Invested Capital (Q: Sep. 2004 ))	/ count )
=	-0.616 * ( 1 - 0% )	/	( (0.476	+	0.426)	/ 2 )
=	-0.616	/	0.451
=	-136.59 %

where

	Invested Capital		(Q: Jun. 2004 )
=	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	))
=	0.252	-	0.419	-	( 0	-	max(0, 0.654	-	0.011	+	0	))
=	0.476

	Invested Capital		(Q: Sep. 2004 )
=	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	))
=	0.182	-	0.499	-	( 0	-	max(0, 0.743	-	0	+	0	))
=	0.426

Note: The Operating Income data used here is four times the quarterly (Sep. 2004) data.

For The Earth (OTCPK:FTEG) 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, For The Earth's WACC % is 0.00%. For The Earth's ROC % is 0.00% (calculated using TTM income statement data). For The Earth 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.

For The Earth ROC % Related Terms

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For The Earth (For The Earth) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » For The Earth Corp (OTCPK:FTEG) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

N/A

Address

2375 East Camelback Road, Suite 600, Phoenix, AZ, USA, 85016

Website

http://www.ftechealth.com

For The Earth Corp is an emerging integrated CBD producer and retailer in the United States. The company is in the process of establishing a vertical framework that will extend from cultivation to extraction and production to a strategic retail footprint that includes multiple locations in Las Vegas and New York featuring mall kiosks, vending machines, e-commerce, and full store locations serving both the human and pet CBD markets.