ForeverGreen Worldwide (ForeverGreen Worldwide) ROC % : -96.92% (As of Dec. 2018)

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What is ForeverGreen Worldwide 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 %. ForeverGreen Worldwide's annualized return on capital (ROC %) for the quarter that ended in Dec. 2018 was -96.92%.

As of today (2024-06-20), ForeverGreen Worldwide's WACC % is 0.00%. ForeverGreen Worldwide's ROC % is 0.00% (calculated using TTM income statement data). ForeverGreen Worldwide earns returns that do not match up to its cost of capital. It will destroy value as it grows.

ForeverGreen Worldwide ROC % Historical Data

The historical data trend for ForeverGreen Worldwide'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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ForeverGreen Worldwide ROC % Chart

ForeverGreen Worldwide Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

ROC %

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49.31

-40.42

-73.71

-29.10

-26.63

ForeverGreen Worldwide Quarterly Data
	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18
ROC %	Get a 7-Day Free Trial															-54.03	-6.38	-12.04	-	-96.92

ForeverGreen Worldwide ROC % Calculation

ForeverGreen Worldwide's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2018 is calculated as:

	ROC % (A: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2017 )	+	Invested Capital (A: Dec. 2018 ))	/ count )
=	-1.628 * ( 1 - 0% )	/	( (4.644	+	7.585)	/ 2 )
=	-1.628	/	6.1145
=	-26.63 %

where

	Invested Capital		(A: Dec. 2017 )
=	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	))
=	3.906	-	4.505	-	( 0.108	-	max(0, 6.47	-	1.227	+	0.108	))
=	4.644

	Invested Capital		(A: Dec. 2018 )
=	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	))
=	2.319	-	4.249	-	( 0.081	-	max(0, 10.199	-	0.684	+	0.081	))
=	7.585

ForeverGreen Worldwide's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2018 is calculated as:

	ROC % (Q: Dec. 2018 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2018 )	+	Invested Capital (Q: Dec. 2018 ))	/ count )
=	-5.692 * ( 1 - 0% )	/	( (4.161	+	7.585)	/ 2 )
=	-5.692	/	5.873
=	-96.92 %

where

	Invested Capital		(Q: Sep. 2018 )
=	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	))
=	3.316	-	4.666	-	( 0.12	-	max(0, 6.68	-	1.169	+	0.12	))
=	4.161

	Invested Capital		(Q: Dec. 2018 )
=	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	))
=	2.319	-	4.249	-	( 0.081	-	max(0, 10.199	-	0.684	+	0.081	))
=	7.585

Note: The Operating Income data used here is four times the quarterly (Dec. 2018) data.

ForeverGreen Worldwide (GREY:FVRG) 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, ForeverGreen Worldwide's WACC % is 0.00%. ForeverGreen Worldwide's ROC % is 0.00% (calculated using TTM income statement data). ForeverGreen Worldwide 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.

ForeverGreen Worldwide ROC % Related Terms

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ForeverGreen Worldwide (ForeverGreen Worldwide) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » ForeverGreen Worldwide Corp (GREY:FVRG) » Definitions » ROC %

Traded in Other Exchanges

N/A

Address

632 North 2000 West, Suite 101, Lindon, UT, USA, 84042

Website

http://www.forevergreen.org

ForeverGreen Worldwide Corp is a United States based holding company. Through its subsidiary, the Company is engaged in the development, manufacturing, and marketing of a comprehensive line of, meal replacements shakes, nutritional beverages, and marine phytoplankton products. The group offers its products to the United States, Canada, Australia, New Zealand, Singapore, Japan, the United Kingdom, and Germany, among others. Its sources of revenue are from the sale of various food and other natural product sales and royalties earned. The product portfolio of the group comprises AIM; FIXX; Pure-EU; Pulse-8; Prodigy-5, PowerStrips and FrequenSea PRO.